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Lang Son Customs arranges officers on duty and guide enterprises customs procedures. Photo: Cong Thanh

Four big problems

The Ministry of Agriculture and Rural Development recently sent a dispatch to the Ministry of Planning and Investment on additional support policies for those facing difficulties caused by the Covid-19 pandemic.

The dispatch signed by Deputy Minister Phung Duc Tien states, in 2020 and the first months of 2021, the Covid-19 pandemic has beencomplex in the country and the world. Following the directions of the Government and the Prime Minister, the Ministry of Agriculture and Rural Development has worked with other ministries, sectors, localities, enterprises and associations to implement supportive solutions and policies for those facing difficulties caused by the pandemic.

As a result, in 2020, the production and business of agriculture sector achieved positive results with the growth rate of 2.68%; export turnover of US$41.54 billion and nine commodity groups with export turnover of more than $1 billion.

Despite the good results, the Covid-19 pandemic has still had a strong negative impact on the agricultural sector.

The first problem is the "bottleneck" in credit. Specifically, agricultural enterprises have faced difficulties in accessing low-interest credit packages, especially small and medium-sized enterprises and agricultural cooperatives.

The second problem is production costs, taxes and fees. Export markets have been affected, trading activities have been disrupted andcorporate profits have declined during the pandemic. Thus, pressure on costs, fees and taxes on enterprises is remarkable.

The third problem is limited cold-storage logistics system for agricultural products. The number of cold storage facilities cannot meet the needs of preservation of agricultural and aquatic products for fresh preservation and export processing.

The final problem is a shortage of input materials for production due to disrupted transportation; some projects of production line investment have been delayed due to waiting for imported equipment, foreign consulting and technical support.

Promote exemption and reduction of land rent and electricity price

Facing the new developments of the Covid-19 pandemic in the country and the world, the Ministry of Agriculture and Rural Development realizes that the production, trading and consumption of agricultural products will face many difficulties and challenges.

To remove problems and promote production and business activities, as well as reduce inventories of agricultural products in localities affected by the Covid-19 pandemic, the Ministry of Agriculture and Rural Development proposes the Ministry of Planning and Investment issue supportive policies and solutions to submit to the Government and the Prime Minister to assign ministries and agencies for issuance.

The Ministry of Industry and Trade is assigned to request provinces and cities to create conditions for agricultural products in blocked localities to be traded in provinces and cities.

Logistics service, warehouses, cold storage and shipping firms are proposed to support the preservation of goods, reduce storage costs, especially agricultural products that must be stored in special conditions.

In addition, e-commerce and online trading of agricultural products through the internet amid the pandemic should be promoted.

The Ministry of Finance is proposed to offer supportive policies to reduce production costs for enterprises affected by the pandemic, such as land rent exemptions or reduction for agricultural firms; electricity and water prices for manufacturing plants, cold storage and allowing delay of payment for electricity bills.

The ministry is asked to study and advise the Government to have timely stimulus packages to support goods consumption in the country.

To work with the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade to request customs and quarantine agencies consider extending the working time and working overtime to facilitate licensing and clearance to avoid congestion at ports, causing costly storage costs.

To research policies to reduce costs for transportation and goods circulation,research policies for price subsidy and support for people, enterprises and cooperatives affected and at loss due to the local isolation/blockade to control the Covid-19 pandemic.

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In addition, the Ministry of Agriculture and Rural Development asks the State Bank of Vietnam to develop policies on extension of debt repayment, not to convert to bad debt, or fine overdue debts for loans at maturity, cut transaction costs to create conditions for firms to have capital for production.