Businesses hope the economic stimulus package of VND350,000 billion will soon come into reality

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Support according to the characteristics of each business

Speaking at the Vietnam Annual Economic Scenario Forum 2022, referring to the support package of VND350,000 billion, Mr. Than Duc Viet, General Director of Garment 10 Corporation, said that a textile enterprise has nearly 2.8 million employees, therefore, enterprises themselves have to self-revive, then they need the State's support.

The leader of May 10 also acknowledged that when businesses cannot survive, the State still has to support them. In this package, we do not spend money for people but support businesses. Mr. Viet said that as input costs are also increasing, transportation costs increase at least 1.5 times, even on some routes by 5-10 times, raw materials increase 10-15% while productivity could not keep up, thereby affecting prices and, more broadly, the competitiveness of enterprises and the country.

“In 2022, we are most interested in the interest rate support package, cheap loans are really a valuable source for businesses, the second is Value Added Tax, and these are policies that are very close to businesses. If possible, the support package should be tailored to the characteristics of each business, or each industry, because this is a decisive factor for the effective implementation of the policy, even though this is not easy,” said Mr. Viet.

Regarding other taxes and fees, a representative of Garment 10 also said that the textile and garment industry is a thin profit industry but has large land use and is currently enjoying a reduction of 30% in land tax, which is also very valuable.

Therefore, the exemption and reduction of taxes, fees, and interest rate support are still the expectations of enterprises in the near future with a desire that they are implemented immediately.

Enterprises hope to restore production and business activities soon. Photo: Le Huong.

According to Mr. Nguyen Quang Trung, Head of Vietnam Airlines Development Planning Department, in the above support package for businesses, the biggest expectation for the Government is to create a market and create conditions for the economy. "Supporting the economy, creating conditions for all other industries is creating conditions for us," Trung said.

Another hope in this support package, according to Mr. Trung, is related to infrastructure, because for the aviation industry, this issue is even more important.“Connecting provinces a few hundred kilometers away can take several years to build a road but creating a bridge between provinces or Vietnam with the world, opening a flight route takes a very short time.

Therefore, investment in reopening aviation infrastructure should be a priority, and after the crisis, aviation should be reopened to create conditions for other industries to develop. We evaluate this support package, although it is not too large for aviation businesses, having an indirect impact is extremely important," Mr. Trung said.

From the perspective of a state agency, Mr. Pham Van Thuy, Deputy Director of the General Department of Tourism (Ministry of Culture, Sports and Tourism), said that, in its 61-year history, Vietnam's tourism industry has gone through many years of experience. Through many crises caused by epidemics, natural disasters, and economic recession, the damage has never been as severe as that caused by the Covid-19 pandemic. Therefore, the economic support package is the second "savior and revival" of the tourism industry.

In order to do this, according to Mr. Pham Van Thuy, first of all, it is necessary to focus on promoting demand-stimulating activities and revitalizing domestic tourism nationwide, in which identifying tourism development with improving internal capacity and autonomy of the industry, promoting the development of domestic tourism. Domestic tourism is the internal force, the basic foundation for sustainable tourism development as well as gradually piloting the opening of international markets. In which, there is an important proposal that should consider tourism as a priority focus area with a large enough scale, long enough time, wide enough scope, a good grasp of opportunities, regaining the growth momentum for the industry.

From there, the Government continues to support business recovery, support tourism industry workers; have new prioritized mechanisms and policies in the direction of facilitating the continued development of the tourism industry, such as: developing tourism infrastructure, creating favorable conditions for international visitors to Vietnam (visa, review) approve entry-level personnel on the spot, increase the visa-free period.