Last week, Comrade Nguyen Van Thanh, Vice Chairman of the City People's Committee, directly chaired a meeting with industry leaders and a number of business associations [...]
Last week, Mr. Nguyen Van Thanh, Vice Chairman of the City People's Committee, directly chaired a meeting with leaders of industries and a number of business associations to discuss measures to support businesses to overcome difficulties caused by the impact of the COVID-19 epidemic. This is one of the positive and very timely moves, because due to the prolonged epidemic, businesses' endurance is weakening day by day and they are in dire need of support from the Government and the city.
Many businesses face difficulties due to lack of imported raw materials. In the photo: A production workshop of Jasan Company in VSIP industrial park.
Many businesses are struggling
According to Mr. Bui Ngoc Hai, Deputy Head of the Management Board of Hai Phong Economic Zone, every day the epidemic is not repelled, the difficulties of businesses increase. In the beginning, when the epidemic first started, businesses in industrial zones (IZs) still struggled to cope, but now they are gradually exhausted. Among them, the most worrying is the shortage of raw materials, which has been dependent on imports from China and Korea... Currently, the amount of raw material reserves is almost exhausted, some businesses have had to stop production such as: C-Focus Vietnam Co., Ltd. in Do Son Industrial Park; or stop production of some lines like Kyocera Company (VSIP Hai Phong). Some businesses are forced to reduce the scale of productionDue to lack of raw materials such as: LG Innotek; Jasan... Mr. Bui Ngoc Hai is worried that if the epidemic continues until the end of March and April, businesses will have even more difficulties. In addition, many businesses producing export goods are also worried about maintaining the market and implementing signed contracts because lack of raw materials will affect the progress of goods delivery.
Representing the Association of Small and Medium Enterprises, Ms. Dao Thi Kim Ngan reflected: the majority of small and medium enterprises are in difficult situations, especially those operating in hotels, tourism, catering, and transportation; Businesses using raw materials from China, Korea... These are the most vulnerable businesses due to their limited potential, small production scale, and need the city's support. According to Mr. Dang The Luong, General Secretary of Hai An District Business Association, some businesses in the district have had to reduce production output by up to 40-50%... Representatives of the Vietnam Chamber of Commerce and Industry - Hai Phong branch are very worried when many member businesses continuously reflect new difficulties and challenges on the path of development.
Notably, not only are there difficulties in raw materials, many businesses are facing a lack of human resources and a team of senior experts. According to Viet Truong Co., Ltd., the company has just completed construction of a new seafood processing factory and has installed machinery. But because the Chinese experts returned for the Tet holiday and were stuck because the epidemic had not yet arrived, they could not operate. Meanwhile, in April the shrimp harvest season will begin. If the factory cannot operate on time, it will be very difficult for the business, especially the efficiency of investment capital. According to the Management Board of the Economic Zone, due to the impact of the epidemic, businesses are unable to recruit new workers, which are also new developments that need to be fully analyzed, evaluated and have solutions.
Practical troubleshooting and business support
In the above context, businesses are finding all possible solutions to solve and handle the problem. Many businesses have proactively sought to import raw materials from countries other than China and Korea. At the same time, proactively negotiate with customers to share difficulties during the raging pandemic.
However, there are still many issues related to business operations that require specific and practical help from authorities at all levels. According to the Management Board of Hai Phong Economic Zone, there are currently many Chinese management experts, engineers and technicians who have not been able to enter Vietnam; Some Chinese workers in Vietnam are also about to expire. This is an issue that needs to be soon proposed by the Department of Labor, War Invalids and Social Affairs to the Ministry of Labor, War Invalids and Social Affairs for a solution. It is known that the Ministry has a solution, instructing the Department of Employment to request localities to synthesize the needs for foreign experts and workers from businesses and send them to the Ministry for consideration and licensing for experts to work, especially experts from corporations and enterprises.large enterprises and projects. The Ministry will review and grant licenses in order of priority, strictly following the process. This is an issue that needs to be urgently implemented by city sectors to contribute to solving difficulties for businesses. The Economic Zone Management Board also proposed to allow Chinese experts currently in Vietnam who have completed their quarantine period to renew their work permits to ensure the stable operation of the factory in Vietnam. At the same time, there are policies to attract workers from other places to work in Hai Phong.
Regarding raw material sources, the city needs to soon propose to the Government, ministries and central branches to work with Chinese authorities at all levels in considering the appropriate application of border control measures, so that businesses can gradually import raw materials again. On the other hand, industries such as Customs also need to pay closer attention to the actual situation of businesses, create maximum conditions, shorten time, and simplify customs clearance procedures so that raw materials quickly reach the factory for production. In the long term, the city needs to have solutions to encourage investment in developing supporting industries and some important basic materials industries such as: manufactured steel, fabrics, new materials... through mechanisms.Specific policies supporting credit, human resources, innovation and market development as well as tax and land incentives...
According to the reflection of the State Bank of Hai Phong branch, to help businesses reduce difficulties due to the impact of the epidemic, since February 2020, the State Bank has issued many guiding documents, requiring organizations to remove difficulties for businesses in a specific and practical way such as: restructuring debt repayment terms; exemption or reduction of interest on existing debts; reduce interest rates on new loans; exempting and reducing fees, implementing credit programs and products... Hundreds of businesses in Hai Phong are benefiting from this policy, partly supporting businesses to overcome difficult times.
Regarding businesses' tax recommendations, the Hai Phong Tax Department said it is considering a proposal to the Ministry of Finance to extend the time for paying personal income tax for foreign individuals (especially from countries with epidemics such as China, Korea, Japan...). Implementing the Government's direction, the Ministry of Finance will coordinate with ministries and branches to urgently submit to the Government for promulgation a decree on extending value-added tax and personal income tax of business households and individuals; Land tax for subjects engaged in production and business activities in economic sectors directly affected by the COVID-19 epidemic, such as tourism, transportation, hotels, textiles, garments, footwear... According to calculations, the total amount of taxes and extended land rent is about30,000 billion VND and it is expected that the time to support businesses will be applied as soon as the Decree is signed by the Government and will end at the end of 2020. Previously, the Ministry of Finance coordinated with ministries and branches to review the Government's proposal and promulgate according to its authority to reduce a number of fees and charges that are inputs to production and business. With this policy, many businesses in Hai Phong will also be supported, contributing to solving part of the difficulties for businesses.
Chairing the meeting on solving difficulties for businesses, Vice Chairman of the City People's Committee Nguyen Van Thanh requested that industries need to be more urgent and proactive in grasping difficult problems of businesses and propose solutions to the city. In the immediate future, agree on the proposal of the Department of Finance, assign the Department of Industry and Trade to preside with the Management Board of Economic Zones and industrial zones and clusters to propose appropriate thematic trade promotion programs, find sources of raw materials for production, new product consumption markets to minimize difficulties for businesses. The Department of Labor, War Invalids and Social Affairs closely follows the recommendations of businesses, resolves licensing and extensions for foreign workers who have been working and are currently working.g in Vietnam after fully implementing quarantine measures. Departments, branches and localities limit and reduce inspections and examinations related to businesses affected by the COVID-19 epidemic, reform administrative procedures, and provide the best and most extensive support to businesses to reduce difficulties of businesses; promptly propose policy adjustments, report to the City People's Committee and submit to competent authorities for consideration and decision. These are remarkable initial measures in the spirit of working together with businesses to overcome difficulties due to the impact of the COVID-19 epidemic in Hai Phong.
Article: Hong Thanh – Photo: Duy Tinh
Procedures
