Prime Minister Nguyen Tan Dung on May 11 signed a new resolution to help ease the pressure on businesses through policies such as extending payment deadlines on VAT and income tax, and making it easier for them to access loans.
Accordingly, a six-month extension for VAT payment for this year's second quarter is granted for small-and medium-sized businesses (excluding lottery, stock, financial, banking, insurance, businesses and firms under major corporations), and those that use large numbers of labourers in production and processing of agriculture, aquaculture, textiles, footwear, infrastructure and electrical equipment.
In addition, the Government agrees a nine-month extension for corporate income tax backdated to 2011 for firms classified in the above two categories and those involved in mechanics, sea transportation, steel and cement production.
The resolution also calls on the State Bank of Viet Nam to implement resolutions for restructuring debts and other necessary steps to support businesses struggling to access loans.
The Government also agrees to reduce land rental payments in 2012 by 50 per cent for businesses in commerce and services, and allow a 12-month extension for investors of projects that are in financial difficulties.
According to the resolution, the Ministry of Finance will propose that the National Assembly consider exempting individuals and households that provided housing and meals for workers, students and labourers and childcare facilities, from VAT, personal and corporate income in 2012.
The resolution also sets out appropriate resolutions to increase the rate of reimbursement of FDI and ODA, and mobilise VND2,000 billion in additional funds to upgrade canals and improve rural roads, as well as other infrastructure projects that would boost agricultural production, aquaculture and the development of craft villages.
Statistics from the Ministry of Planning and Investment showed that by April 20, at least 82,000 businesses had been dissolved and 16,000 others had to halt operations./.