Policy in finance and money to help businesses after the Covid-19 pandemic

DNHN - The business world is still dealing with low domestic demand and a slow economic recovery. More pressure on inflation risk, the budget deficit, and the government's need to pay back debt.

Problems that businesses are facing now

The Covid 19 outbreak and the regional and global geopolitical environment remain complex, echoing the trend of rising price pressure and inflation; nations have reduced aid packages, purchased assets, and increased interest rates... making oil prices, gold prices, stocks, and many imported input materials more volatile and unpredictable; directly and indirectly, reducing aggregate supply and aggregate social demand, disrupting many supply chains and traditional contact economic activities, and reducing all indicators and drivers of global economic growth and nation;

Increasing demands for technical barriers from import markets and the disruption of many traditional transport and supply chains of goods and services also narrow the profit margins of enterprises.

The business community also has to deal with low domestic demand and a slow economic recovery. There is also more pressure on inflation risks, the budget deficit, and the government's need to pay back debts. Access to credit is limited because of strict credit conditions, such as a lack of collateral, bad debt conditions, and solid business plans.

At the same time, many businesses still have trouble with a lack of workers, rising costs of raw materials and labour, a lack of new orders because customers have trouble buying, high informal costs due to harassment and complicated and expensive administrative procedures, and a delay and difficulty in getting access to the current preferential policies of the government and localities.

Also, there is constant pressure on several Vietnamese products and businesses to be looked into for dumping and fake proof of origin, which could lead to a higher export tax or other countervailing measures.

Policies that support enterprises are required.

In general, solutions to support businesses need to be synchronous, consistent and consider the two-sided effects of policies; both central and local consensus, while encouraging appropriate initiative, creativity, flexibility and adaptability of localities and ministries and sectors too, directly and indirectly, help focus on continuing to control the disease safely; overcome and remove difficulties in production and business, take advantage of opportunities, improve internal capacity and competitiveness, resilience and autonomy of the economy; reduce business costs for enterprises; increasing search, negotiation, signing and implementation of new commercial contracts; harmonize and protect the interests of businesses and consumers; maintain policy confidence and investment confidence, market confidence.

The National Assembly, Government, Ministries, Branches, and Localities shall consider additional taxes and fees that need to be exempted or reduced for enterprises and economic activities involving imported materials; extending the time limit for the postponement of payables and payables of enterprises; loosening room - increasing the limit of credit growth limit for lending to areas in need and with good development prospects; actively diversifying growth scenarios and controlling macro and micro risks…

It must simultaneously avoid and address foreign risks, maintain macroeconomic stability, keep inflation under control, and secure social security, livelihoods, and employment to maximize the domestic market. the impoverished, the disadvantaged, and the working class.

Establishing a business climate that is conducive to emerging trends, regional and global competitiveness, and assisting businesses in accessing cutting-edge, efficient, and acceptable modes of production and commerce to meet their demands. In particular, it is necessary to speed up and radically reform administrative procedures, improve the substantive business investment environment, and concentrate on addressing bottlenecks and inadequacies that impede enterprises' development. This is especially true in the face of changes and adjustments in the global economic structure.

Replacing cadres, civil servants, and other public employees who lack the skills and qualifications to perform their duties; ensuring transparency, clarity, and consistency in rules, policies, service standards, and attitudes toward fairness; collaborating closely with enforcement agencies, and successfully luring both domestic and foreign investment capital to support socio-economic recovery and development.

Focus on continuing to implement the current policies in support packages (particularly the VND 347,000 billion package) for businesses and people affected by the pandemic, in the spirit of reducing the financial burden, reducing and extension of tax and land rent payments, interest rate support, and debt restructuring;

Reducing public service fees continues to cut lending interest rates for both current and new loans, avoiding businesses from lacking credit capital and establishing favourable conditions for businesses to continue to sustain and expand their goods.

In line with the Employment Law, continue to let enterprises borrow loans from the Bank for Social Policies and the Unemployment Insurance Fund at low-interest rates for training and retraining to develop vocational skills and preserve jobs for employees.

Simultaneously, continue to manage financial instruments, and fiscal and monetary policies flexibly, proactively manage and adjust state budget targets, including state budget revenues, state budget overspending, and public debt to reflect the actual situation, accelerate the disbursement of public investment capital, expand the international market, and stimulate domestic consumption demand to stimulate growth.

Focus on analyzing and refining legal laws and streamlining administrative procedures to reduce costs for individuals and enterprises. To give priority to guide the development of a variety of new economic domains, such as the night economy, digital economy, urban economy, and circular economy; To strengthen the role and performance of business associations; To promote civic engagement and corporate social responsibility...

The Industry and Trade sector must also focus on strengthening state management to continue improving the investment environment; intensify investment promotion and trade promotion activities; community information work; control speculation, profiteering, and corruption in state management; information expansion and organized market development; and harmonize interests in the import and distribution of goods in short supply.

To give priority to the growth of local markets and new supply chains; Develop e-commerce, conventional platforms, and the contactless economy; Develop synchronous logistics infrastructure and connection across transport sectors and fields; increase exports of services. Early and comprehensive identification and promotion of information work to assist firms in overcoming technical hurdles in the context of nations opening up for trade following Covid-19...

Focus on assisting businesses to be more proactive in the domestic supply of raw materials, components, and intermediate products; improve innovation capacity and market development; promote connections between manufacturers and distributors, banks and businesses to exploit new opportunities from new free trade agreements; formulate and implement a strategy to develop supporting industries and a national program to enhance the governance capacity of t, and develop and implement a strategy to develop supporting industries and a national program to improve the governance capacity of t.

Additionally, it is necessary to implement solutions to stimulate domestic market demand; promote public investment; expedite the implementation, disbursement, and efficiency improvement of public investment projects; eliminate bottlenecks in the real estate sector and develop the social housing market.

At the same time, it is necessary to actively develop and swiftly implement a national trade and investment promotion campaign, affirming that Vietnam is a "strategic reliable partner", a safe and ready investment destination ready to receive capital flows to Vietnam, shaping and establishing a new position for Vietnam in global supply chains; participating in creating and mobilizing to bring suitable, higher value-added production and business stages into Vietnam from FTA countries.

Continue coordinating with appropriate authorities to investigate and execute methods to indirectly help individuals and companies through cost management and state-managed pricing of critical items such as electricity and gasoline prices...

Dr Nguyen Minh Phong