Workers at Printing Joint Stock Company No. 7, Binh Tan District, Ho Chi Minh City - Photo: QUANG DINH
Many experts have proposed this when talking to Tuoi Tre about solutions to support businesses to overcome difficulties and recover soon. Previously, Minister of Planning and Investment Nguyen Chi Dung admitted that domestic businesses are facing many difficulties, many businesses are not strong enough to grow. Therefore, it is necessary to continue to have policies to support businesses to recover.
Should increase tax reduction, increase support period...
In the first 5 months of 2024, according to the General Statistics Office (GSO), although the whole country had about 98,800 enterprises entering the market, there were also 97,300 enterprises leaving the market, an average of about 19,500 enterprises leaving the market each month.
According to Mr. Nguyen Bich Lam - former General Director of the General Statistics Office, one of the biggest difficulties for enterprises is the blockage of product output. Many enterprises have to accept signing orders with lower profits to have jobs and maintain production.
Many other businesses are facing difficulties in capital and are forced to withdraw from the market. In addition, businesses are also facing many difficulties in the legal environment, institutions, and administrative procedures. To support businesses to overcome difficulties, according to Mr. Lam, immediate solutions are needed to stimulate domestic consumption.
"In particular, the Government should continue to reduce VAT more strongly. For example, increase the VAT reduction rate from 2% to 5% to support consumers, and at the same time have policies to support businesses in finding markets as it has supported the agricultural sector in exporting official fruits and vegetables to China in 2023," Mr. Lam proposed.
Speaking to Tuoi Tre, Mr. To Hoai Nam, permanent vice president and general secretary of the Vietnam Association of Small and Medium Enterprises, said that compared to the first 3 months of the year, the number of newly established enterprises in the first 5 months has increased, although not by much. This partly shows that the Government's support policies have penetrated the economy, and the business picture has become more positive.
However, if we look at the commercial and service sector with a series of business households, wholesale and retail enterprises, food and beverage businesses returning premises..., the situation is still very tense. Survey data also shows that 64% of enterprises in the commercial and service sectors are facing difficulties. For example, returning premises also partly shows that the trend of online sales is somewhat replacing traditional sales.
Therefore, according to Mr. Nam, in addition to policies to defer taxes and land rents, there should also be support policies for each business sector. For example, the service and trade business sector needs support to access medium-term capital so that businesses and business households can upgrade their sales systems and digitize their sales channels.
In addition, it is necessary to supplement policies to support workers, especially workers facing difficulties, support union fees and insurance to reduce the burden on businesses and workers.
"And to support businesses in recovering, the policy of deferring and postponing taxes and land rents should be extended for some essential industries and sectors until the end of 2025. Because the taxes and land rents that businesses do not have to pay will be like a State-supported loan for businesses with 0% interest during the deferral period," Mr. Nam proposed.
The commercial area on Hai Ba Trung Street, District 1, Ho Chi Minh City in July 2023 (left photo) has now returned to bustling operation (photo taken at noon on June 24, 2024) - Photo: QUANG DINH
The trend of returning premises has not stopped...
On June 17, the Government issued Decree 64 on extending the deadline for tax and land rent payments in 2024. This is a timely solution to support businesses to overcome difficulties. However, according to experts, stronger solutions are needed in the direction of reducing VAT by 5%, extending the deferral period for corporate income tax, personal income tax, and land rent until the end of 2025...
In particular, according to experts, it is necessary to continue promoting reforms, removing procedural obstacles, and facilitating investment and business. Mr. Nguyen Duc Tam, Director of the Department of National Economic Synthesis, Ministry of Planning and Investment, admitted that since the beginning of 2024, the world economic situation has continued to be complicated, beyond the forecasts of countries and many international organizations, affecting the 2024 growth targets.
"Export activities have recovered positively, but in reality, many enterprises and business households are still facing many difficulties and have had to transfer their business premises in commercial centers and central streets. In addition, competitive pressure is increasing with Vietnamese goods in both domestic and international markets," said Mr. Tam.
Source: GSO - Compiled by: BAO NGOC - Graphics: TAN DAT
Acknowledging that businesses are facing many difficulties, Mr. Nguyen Chi Dung, Minister of Planning and Investment, said that he is assigning the General Statistics Office to conduct a survey on actual business operations in the first 6 months of the year, the situation of returning stores, shops, and premises of businesses... to have appropriate support solutions.
"If businesses are not strong enough to grow, it is difficult to talk about participating in the global value chain and connecting with FDI enterprises. This cannot be shouted about, we must do it, we must have solutions for domestic enterprises to grow," Mr. Dung said, affirming that domestic enterprises are in dire need of support from the State.
For example, the State should support those who have participated in the production process and mastered technology at FDI enterprises to start their own businesses... In particular, administrative procedures must be reformed more strongly, with the participation of the entire political system... This is also the reason why the Ministry of Planning and Investment proposed to establish a State Steering Committee on reform headed by the Prime Minister.
Citing the story of a Tesla car factory in China with an investment capital of billions of USD, but from the time of construction to inauguration and putting into production, it took less than 1 year or only about 68 days to build a shopping mall like Aeon in Vietnam, Mr. Dung said that if Vietnam does not change, it will be very difficult to compete.
"The spirit is to innovate and reform more strongly and substantially, going to the root of each problem and each procedure to clear bottlenecks and free up resources. Resources in society are huge, but if they continue to be blocked like they are now, they cannot be promoted and even discourage private investors," Mr. Dung emphasized.
Service business is still difficult. In the photo: the commercial - service area on Hai Ba Trung Street, District 1, Ho Chi Minh City in July 2023 (left photo) and now has "revived" but many places still have signs for renting premises, photo taken at noon on June 24, 2024 - Photo: QUANG DINH
Dr. Nguyen Minh Thao (Head of the Department of Business Environment and Competitiveness Research, Central Institute for Economic Management):
Need special mechanism to support enterprises
Dr. Nguyen Minh Thao
The establishment of a State Steering Committee on reform headed by the Prime Minister demonstrates the Government's determination to facilitate the investment and business environment.
However, the business investment environment is related to many laws and many different specialized ministries, so if there is a committee headed by the Prime Minister, with ministers and heads of sectors as members of the steering committee, the head of the Government will directly direct the removal of obstacles for businesses. Procedures for business investment, especially large investment projects, will be resolved more quickly.
However, this will be difficult to implement if the steering committee does not have a special mechanism to operate, the implementation of investment and business procedures must still comply with the provisions of current laws. Therefore, the establishment of the State Steering Committee on Reform must be authorized by the National Assembly to apply a flexible mechanism to resolve investment and business procedures.
This will be a special mechanism for the steering committee to operate and make decisions in some cases where legal regulations do not exist. If a reform committee is established but there is no special mechanism, all procedures must still be carried out sequentially, which will not have much meaning.
Dr. Nguyen Quoc Viet (Deputy Director of the Institute for Economic and Policy Research, Vietnam National University, Hanoi):
Export support credit packages should be expanded.
Dr. Nguyen Quoc Viet
The recovery of enterprises in May and June was better, with good export growth, which partly supported enterprises in the export supply chain to return to the market. Furthermore, the recovery of the manufacturing sector also brought along the service chain, and the recovery of the tourism industry was also clearer.
This supports service enterprises to return to the market. The difference is that the capital registered to establish new enterprises is getting smaller and smaller, and the recovery of processing and manufacturing enterprises is not clear.
The above reality shows that private investment is still limited, growth recovery is not sustainable, so new solutions are needed such as exemption, extension, and postponement of fees and charges for businesses.
Policies to support enterprises to participate in export linkages are being implemented well, for example, the export support credit package. However, it is possible to expand the beneficiaries of the export support credit package in the direction of promoting linkages, encouraging Vietnamese enterprises to participate in global supply chains. Support both direct export enterprises and indirect export enterprises through large FDI enterprises.
We used to have a program to support small and medium-sized enterprises to participate in the value chain and production chain, but it was very fragmented and the conditions for receiving support were very limited. We should support medium-sized enterprises, large enough to participate in global supply chains. This support policy needs to be redesigned.
Source: https://tuoitre.vn/lieu-thuoc-manh-ho-tro-doanh-nghiep-20240625084707206.htm
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