Investments

“Government Support for Businesses: A Post-Disaster Recovery Plan”

The VCCI's Head of Legal Affairs emphasizes the critical need for appropriate economic policies to facilitate the swift reconstruction and revival of business operations for enterprises in the Northern provinces.

Administrator

19 September, 2024

Quang Ninh focuses on repairing the piers damaged by Storm No.3 to ensure the safety of tourists. (Photo: Van Duc/VNA)

Through practical approaches in several localities in some northern provinces and cities, the Vietnam Chamber of Commerce and Industry (VCCI) has recognized the business community’s great efforts to overcome the consequences of Storm No.3.

At the same time, enterprises closely coordinate with local functional forces, mutually support each other, and contribute money and effort to assist people in the affected areas to overcome this challenging period.

Mr. Dau Anh Tuan, Director of the VCCI’s Legal Department, assessed that this is a time when appropriate economic policies are needed for businesses in the northern provinces to quickly rebuild and restore production and business activities, thereby reducing long-term damage from the storm and ensuring livelihoods for local people.

Based on the opinions of enterprises and associations, the VCCI proposed to the Government some specific policies. Regarding sectors, fields, and localities suffering the most significant losses from Storm No.3, including fishing vessels for aquatic product exploitation, tourist ships, and cages for aquatic breeding on the sea, rivers, streams, and ponds, the VCCI proposed supporting actual damage to aquatic breeding cages according to Decree 02/2017/ND-CP. It also suggested considering increasing the support level and applying it to enterprises breeding aquatic products.

Regarding supporting actual damage to fishing vessels and tourist ships, it is necessary to consider the prescribed level and assign the People’s Committees at the communal level and ship owners to jointly statistics the damage.

In addition, waive water surface rental for aquatic breeding establishments until the end of 2025; exempt related fees and charges, such as port entry and exit charges and inland waterway port charges, for about six months to one year.

The state should also support 50-70% of the cost of purchasing insurance for fishing vessels and tourist ships until the end of 2025; consider exempting or reducing by 50% the value-added tax, corporate income tax, and personal income tax that these subjects must pay for about four to six months; reduce social insurance payments for about four to six months; and exempt the amount of trade union funds paid to the upper level for about four to six months.

For other sectors and fields in localities affected by the storm and floods, the VCCI proposed promptly implementing support measures to restore agricultural production stipulated in Decree 02/2017/ND-CP.

Accordingly, it is recommended to expand the scope of support to include agricultural production enterprises damaged by storms and floods and consider increasing the support level appropriately.

Storm No.3 and its aftermath caused damage to 164 hectares of vegetables and crops in Quynh Hai commune, Quynh Phu district, with losses ranging from 80 to 100%. (Photo: The Duyet/VNA)

It is necessary to consider reducing the value-added tax on gasoline and oil from 10% to 8% from September to December 2024 for retail gasoline and oil establishments in localities damaged by storms and floods, especially in the northern mountainous provinces.

In addition, consider reducing the value-added tax on electricity from 8% to 6% for electricity customers in localities damaged by storms and floods; consider continuing to extend the time limit for paying value-added tax, corporate income tax, and land rent for enterprises in localities affected by storms and floods to 2025; consider extending the time limit for paying social insurance premiums from four to six months for enterprises in localities affected by storms and floods; consider reducing by 50% the trade union funds paid by enterprises in provinces damaged by storms and floods to the upper level until the end of December 2024, and extend the time limit for payment to 2025.

The VCCI also proposed continuing to implement the policy of restructuring the repayment term and maintaining the debt group under Circular No. 02/2023/TT-NHNN and Circular No. 06/2024/TT-NHNN for payment obligations from now until June 2025 for loans of customers producing and trading in areas affected by Storm Yagi.

At the same time, the VCCI also proposed that the Prime Minister direct the use of the Natural Disaster Prevention and Control Fund to provide relief and overcome the consequences of Storm No.3. This fund is contributed by enterprises and employees, and by 2023, there was a surplus of nearly VND 2,000 billion.

Storm Yagi recently caused significant losses of lives and property in many northern provinces. According to reports from enterprises and associations, the damage to the assets and production and business activities of many enterprises is severe, estimated at thousands of billions of VND.

Many valuable assets of several enterprises have been damaged, such as factories, boats, means of transport, machinery, equipment, and goods.

Most other enterprises in the northern provinces were indirectly affected, such as having to close, stop production and business, or reduce productivity and revenue during the storm and flood due to the inability of laborers to go to work, the inability to transport goods, or the inability to access customers.

The restoration of production and business activities of many enterprises is currently facing difficulties, affecting economic growth and the livelihoods of many people and laborers.

Ngoc Quynh