HCM City set to launch businesses support initiatives

Ho Chi Minh City is set to carry out 13 different solutions in an effort to offer continued support for local businesses. Photo:Hanoimoi (New Hanoi)

With regard to business activities during the COVID-19 outbreak, Nguyen Anh Thi, head of the Ho Chi Minh City High-Tech Park Management Board, says the park’s board asked competent authorities to allow local enterprises and the two largest factories, Intel Vietnam and Samsung, to continue to operate without interruption. Whilst the businesses did continue to operate, social distancing measures were put in place to prevent the possible spread of the epidemic.

"These businesses are an important link in the global supply chain, whilst electronics and high-tech products play a very important role, especially in the period when the whole world works together against the pandemic. In fact, businesses in the Ho Chi Minh City High-Tech Park have been affected by the epidemic, but the impact is not too heavy," Thi states.

Specifically, the first half of the year saw the estimated production value of enterprises reach a figure of US$7,451 billion, down 5.8% over the same period from last year, therefore reaching only 37.2% of the set plan. Export value stood at US$6,946 billion, an annual fall of 2.6%, with import value US$5,979 billion, down 24.2% over the same period.

The City Tax Department has moved to formulate a set of criteria aimed at guiding cases of tax exemption, reduction, and extension moving into the post-COVID-19 phase, whilst also carrying out the extension of tax payments and land rentals.

As of mid-June, the southern city has handled 684 VAT refund records for municipal businesses, with refunds of more than VND4,500 billion. Simultaneously, commercial banks have mainly focused their support on two groups, including interest rate reduction and debt restructuring aimed at maintaining debt groups.

With regard for social insurance, as of the end of June, the total number of enterprises submitting dossiers verifying their right to enjoy support policies for staff stood at 2,346, whilst the social insurance agency has verified 2,040 businesses with 52,184 employees.

According to Tran Vinh Tuyen, vice chairman of the Ho Chi Minh City People's Committee, the southern metropolis will implement 13 groups of solutions in the near future in a bid to continue supporting businesses in production and business operations.

This should be done alongside carrying out the directions proposed by the Prime Minister, whilst promptly deploying tax-related policies approved by the National Assembly and the Government in an effort to support businesses, organisations, households, and business inpiduals.

Moreover, it is considered imperative to outline a group of solutions aimed at helping small and medium-sized enterprises (SMEs) manage and develop independently whilst avoiding bankruptcy. In particular, major economic groups must assist SMEs towards mutually beneficial co-operation such as assistance in sourcing raw materials, finding markets, trade promotion, and vocational training.

Furthermore, there should be a specific plan to help travel firms promote domestic tourism that is associated with the transport industry, in addition to removing bottlenecks of real estate projects, deploying land auctions, and stimulating social investment to create additional employment, Tuyen adds.