16,000 businesses still need Ministry of Finance rescue

by ,http://vietnamnews.vn/economy/674818/16000-businesses-still-need-ministry-of-finance-rescue.html07 April 2020 Last updated at 18:26 PM

About 16,000 businesses are not included in the Ministry of Finance’s support package on tax and land rent.


The beer and alcohol sector is hit hard by COVID-19. — Photo baodautu.vn
HÀ NỘI — About 16,000 businesses are not included in the Ministry of Finance’s support package on tax and land rent.

Phạm Đình Thi, director of the Tax Policy Department under the Ministry of Finance, said about 98 per cent of businesses would benefit from the package with a total tax and land rent being extended to VNĐ180 trillion (US$7.66 million).

However, economic experts said that there were 2 per cent of 800,000 enterprises nationwide, equivalent to 16,000 enterprises, that had not been considered for tax extension support.

Notably, more than 1,000 businesses in the beverage sector have been affected by COVID-19. Most of the goods are not consumed.

More than 200,000 workers of the Việt Nam Beer Alcohol Beverage Association (VBA) have had their work interrupted.

Nguyễn Văn Việt, VBA chairman, said that not only workers but the State's revenue was also affected by the impact of COVID-19.

Every year, this association contributed more than VNĐ60 trillion to the State budget.

Therefore, the chairman proposed the Government and the Ministry of Finance to consider and allow beverage industries to be subject to tax and land rent extension.

Associate Professor Doctor Nguyễn Thị Thùy Dương, lecturer at the National Economics University, said that in order to cover all businesses hit by COVID-19, the Ministry of Finance should stipulate businesses which were damaged by the pandemic would be supported from the package, and not distinguish specific industries.

The National Economics University recently had a report on the impact of the COVID-19 pandemic on the Vietnamese economy.

Results from the survey showed that to deal with difficulties caused by the pandemic, 65.5 per cent of businesses cut down their regular operating costs; 35.3 per cent of enterprises had to reduce labour; 34 per cent had to cut workers' wages and 34.5 per cent of enterprises had to let workers leave without pay.

Nearly 45 per cent of businesses cut production and business scale; 34.7 per cent of businesses chose to suspend production and business activities to wait through difficult times and 15.1 per cent of enterprises will change their business and production form to suit the new context.

The report also showed that although the COVID-19 pandemic was unlikely to have an impact in the medium and long term, the economy would need at least one quarter to recover after the pandemic is under control. — VNS


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