The Vietnamese government has used drastic measures to prevent and control the COVID-19 pandemic at all levels. It has achieved encouraging results. This consistent approach is paying off: In the April 2020 World Economic Outlook, the International Monetary Fund forecasts growth of 2.7 percent. The rating agency Moody’s expects 2.8 percent growth in 2020.
The government has always supported businesses, helping them to overcome difficulties, stabilise and restore production. The package of government support designed to stabilise the economy includes:
[*] Financial support
The Vietnamese Prime Minister Nguyen Xuan Phuc issued a directive to the State Bank of Vietnam to instruct credit institutions to meet capital needs for production and accelerate administrative procedures such as shortening processing time for loan applications and reducing fees, interest rates, etc. for customers who are in difficulties due to COVID-19 (a package worth approximately VND 250 trillion).
[*] Tax and rent support
The government issued Decree 41/2020 / ND-CP, extending the time for paying taxes and land rents, which is worth approximately VND 180 trillion. According to the Minister of Finance, about 740,000 businesses, or 98% of companies in operation, would benefit from the land rent and tax payment extension policy. The Ministry of Finance has issued Circular 14/2020/TT-BTC adjusting prices by 10-50% for nine service groups and completely exempting six service groups in the field of securities.
[*] Advice for businesses
The government has always supported businesses, helping them to overcome difficulties, stabilise and restore production. The package of government support designed to stabilise the economy includes:
- Reduction of 10% in the retail price of electricity for the manufacturing and business sectors
[*] Financial support
The Vietnamese Prime Minister Nguyen Xuan Phuc issued a directive to the State Bank of Vietnam to instruct credit institutions to meet capital needs for production and accelerate administrative procedures such as shortening processing time for loan applications and reducing fees, interest rates, etc. for customers who are in difficulties due to COVID-19 (a package worth approximately VND 250 trillion).
[*] Tax and rent support
The government issued Decree 41/2020 / ND-CP, extending the time for paying taxes and land rents, which is worth approximately VND 180 trillion. According to the Minister of Finance, about 740,000 businesses, or 98% of companies in operation, would benefit from the land rent and tax payment extension policy. The Ministry of Finance has issued Circular 14/2020/TT-BTC adjusting prices by 10-50% for nine service groups and completely exempting six service groups in the field of securities.
[*] Advice for businesses
- In terms of tax expenses, businesses should file promptly for exemption and deferral of payment until after business recovery.
- Office expenses such as utilities and stationery can be reduced by working online from home.
- In addition, businesses should aim to reduce spending on marketing strategies and move gradually into online sales.
