Proposing a series of solutions to "save" businesses from Covid-19 season 2

Recently, the Private Economic Development Research Board (Section IV) of the Administrative Procedure Reform Advisory Council of the Prime Minister has introduced policy recommendations (solutions to support businesses in the Covid season. 2) to the Prime Minister; both to "save" enterprises in time and stimulate consumer demand, so that the economy will not be broken, paralyzed, ... by the impacts caused by the 19nd Covid-2 epidemic.

For the upcoming business support package, Board IV proposed, it is necessary to aim at strengthening trust and creating motivation for businesses, the policy implementation process must really aim to support businesses as their best priority. first first.

Solutions to be promoted to support businesses before the second wave of Covid-19

Specifically, some solutions proposed by Ban IV to the Government are as follows:

  • 30% corporate income tax reduction: 30% corporate income tax reduction for all businesses in 2020, instead of only applying to enterprises with total revenue in 2020 not exceeding 200 billion VND;
  • Minimum 50% discount on Insurance premiums: reduce at least 50% of the amounts of social insurance, health insurance and unemployment insurance in 2020 even extending to 2021; 
  • Postponement of Insurance Closing Time: postpone the time to pay the insurance premiums compared with the current regulations (because this is a large expense for both enterprises and employees, especially during the Covid-19 epidemic);
  • Exemption from payment of Trade Union fees for the whole year 2020 - 2021: The Government assigned the MPI and MOLISA to work with the Vietnam General Confederation of Labor to assess the urgency and significance of the exemption from payment of trade union fees for the whole 2020 to 2021, instead of just delaying payment. number of months…;
  • Reduce the VAT rate to 5%: The Government proposes to the National Assembly to reduce the VAT rate from 10% to 5% to reduce costs for consumers in order to stimulate demand for industries during and immediately after the epidemic;
  • The bank should deeply support the following incentives:

The bank expanded unsecured loans, continued to offer interest rates to investment loans, reduced current loan interest rates, frozen debt repayment periods ... 

Tourism and logistics enterprises (part of supply chain management) want to apply electricity prices like the manufacturing industry instead of the current electricity service price in the condition that the electricity price bracket has not been issued. new, supporting businesses to overcome the COVID-19 pandemic.

  • Deposit reduction: proposed to reduce deposit money of tourism businesses because this is the object most affected by the Covid-19 epidemic.
  • Promote activities to attract foreign investment: The Government continues to promote public investment, take drastic measures to effectively attract FDI inflows and support domestic enterprises to better utilize opportunities from these capital flows.

Committee IV further emphasized that decisions and mechanisms for implementing policies to remove difficulties should be fast, transparent and convenient, focusing on providing online public services, avoiding cumbersome and unreasonable procedures. such as the first round of support to facilitate the best support for businesses and people severely affected by the epidemic. Business support solutions Covid season

Overview of business situation before the impact of Covid-19 epidemic phase 2

According to the report on assessing the impact of the 19nd Covid-2 epidemic on enterprises announced by Board IV, the impact of this outbreak on enterprises is particularly large. The numbers are alarming: 

  • 20% of businesses have to suspend operations
  • 76% of businesses said that they are not able to balance their revenues and expenditures
  • 2% of businesses were dissolved
  • Only 2% of businesses are temporarily unaffected by the pandemic

The biggest difficulty facing most businesses today and the next 6 months is that there are no customers, orders, sales contracts for products and services, ... while ensuring wages and social insurance contributions. , Health insurance, unemployment insurance, union funding, electricity, water, fuel input,….

According to the calculation of Board IV, the rate of enterprises "disappearing" (no change of address or suspending operation but the tax authority cannot contact) is 4%, an increase of 39,3% over the same period. 2019. This could be a forecast showing that the number of businesses applying for suspension of business activities in the following months will increase sharply because the second outbreak takes place near the end of July, early. August.

At the same time, if the number of enterprises suspending this business can not restructure their production and business activities and the epidemic persists, the number of enterprises waiting for dissolution is forecasted to increase correspondingly in the months. end of the year and early next year.