Effective policies to accompany businesses

DNHN - If the Vietnamese economy is compared to a person who has recently recovered from a serious illness, the State's support packages are analogous to a unique tonic that aids patients in regaining their health. This is also the driving force behind the economy regaining its growth momentum following periods of near-freezing activity in several sectors.

Following the Government's Resolution 11/NQ-CP and the National Assembly's Resolution 43/2022/QH15 on the Socio-Economic Development and Recovery Program, a series of significant policy shifts occurred. Things like lowering the value-added tax on the majority of items from 10% to 8%, reopening international lines, and supporting tax, fee, and interest exemption and reduction are all expected to aid the Vietnamese economy in "booming" faster and stronger following the pandemic. 

Currently, a lot of policies have been adopted with the earliest and most effective slogan by ministries, branches, and local governments. As a result, the Vietnamese business community is looking forward to effective and sustained support that will enable them to begin the recovery and development process more swiftly.  

After many support policy packages from 2020 to 2021, at the beginning of 2022, Resolution No. 43/2022/QH15 was approved by the National Assembly to serve the program of socio-economic recovery and development. This is considered a fiscal policy with an unprecedentedly large budget of about VND 350 trillion (equivalent to 4% of the country's GDP). 

The Government immediately released Resolution No. 11/NQ-CP as a "guideline" for this program. This prompt action by the National Assembly and the Government largely reflects the wishes of the business community and the general public, demonstrating a strong commitment to bringing our country's economy out of a tough phase as quickly as possible. a struggle to continue. The program has been in operation for less than two months at this point, during which time several policies have been adopted and numerous participants have gotten assistance.

The most significant component of the VND 350 trillion assistance package is the policy of tax exemption, reduction, and interest rate support, with almost VND 50 trillion backed by a 2% VAT cut, which would help boost economic growth while stabilizing the macroeconomy and reining in inflation. Additionally, about 40 trillion VND would be used to support the issuance of 2% annual loan interest rate compensation to enterprises and business cooperatives. Although the granting of this interest rate compensation has not been implemented, the State Bank of Vietnam is consulting on the matter and hopes to offer a proposal to the Government as soon as March. 

Additionally, numerous other support policies are being implemented, including a 50% reduction in registration fees for domestically assembled and manufactured vehicles from December 2021 to May 2022; and a 50% reduction in the environmental protection tax on jet fuel from its current level of 1,500 VND/litre in 2022 to only 1,500 VND/litre in 2022. This, according to estimations, will assist automobile manufacturers in dramatically raising sales volume, promoting shopping, and aviation businesses save almost 1,600 billion VND. This is a critical resource for businesses that have been "struggling" due to the epidemic. 

According to economic expert Assoc., Dr Ngo Tri Long, fiscal support packages implemented over the last two years have come to fruition as the economy has recovered, resulting in increased state budget revenue as a result of company recovery. Numerous firms have recognized the Government's and National Assembly's timely and right judgments on support packages. 

Enterprises value the tax, fee, and land rent solutions in particular for their simplicity of access and practicality in assisting businesses and individuals in overcoming obstacles caused by the COVID-19 epidemic and recovering from the pandemic. recovery and expansion of manufacturing and commerce.

Fiscal support policies, on the other hand, can only help businesses increase their resilience temporarily; they cannot revive them. In the long run, the Government should continue to study alternative mechanisms, non-financial support policies, and effective institutional reforms that can help increase the intrinsic capacity of businesses and the economy's self-recovery ability.

Do Ngan