Gov’t resolution 13 touches proper points
Gov’t resolution 13 touches proper points
Business community is now welcoming the Government’s Resolution 13/NQ-CP on some solutions for easing difficulties against production and supporting the market.
Key contents
1. Granting a 6-month VAT payment deferral for VAT payable of April, May and June 2012 for the following enterprises:
a. SMEs (except those carrying on the business of lottery, securities, finance, banking, insurance or selling Special Consumption Tax goods/services).
b. Labor-intensive enterprises engaged in manufacturing and processing of agriculture, forestry and aquatic products; textile and garments; leather and footwear; electronic components; and construction/ installation of certain infrastructure projects.
2. Reduction of 50% land rental in 2012 for a number of selected trading enterprises which lease land from the State and are subject to land rental adjustments under Decree No. 121/2010/ND-CP dated 30 December 2010.
3. Granting a 9-month CIT payment deferral for outstanding CIT liabilities from 2011 and before if these balances are still outstanding as of present, for the following enterprises:
a. Same as mentioned in 1.a and 1.b above; and
b. Manufacturers of mechanical products which will be used as capital goods, waterway transporters (both domestic waterway and sea-going transport), manufacturers of steel, and manufacturers of cement.
4. Granting a deferral on the payment of land use fees for up to 12 months for selected investors that are facing serious financial difficulties. Eligible projects and specific deferral timeline will be determined by the provincial government on a case by case basis.
Reducing businesses’ capital pressure
Commenting on the Resolution, Mr. Vu Nhu Thang, Director of the Institute of Financial Strategy and Policy said the solutions were designed to timely ease difficulties against enterprises.
These solutions are now being deployed along with re-arrangement of State-owned enterprises (SOES), restructuring of credit organizations and banking system, and innovation of public expenditure policy, he added.
Resolution 13 figures out the time of difficulties of enterprises. Thus, the solutions demonstrate the Government’s effort to support businesses and strengthen the economy.
The solutions also demonstrate synchronous coordination of macro-economic policies, particularly fiscal and monetary ones.
“Only by maintaining low and stable inflation, can we lower interest rates to create favorable conditions for businesses to access to credit loans,” Mr. Thang said.
Meanwhile, the Chairman of the Viet Nam Association of Mechanical Industry (VAMI), Nguyen Van Thu said the Resolution would help lessen pressure on enterprises as the granting of VAT payment deferral is considered as the granting of zero interest rate in six months to maintain production.
Mr. Thu even said that the extension of VAT payment is one of the most practical support for businesses in the current time.
Mr. Nguyen Tuan Luong, Director of Lac Viet Joint-stock Company compared the Resolution as an effective medicament prescription. He believed that many enterprises will be saved.
Business community is now waiting for the Ministry of Finance which is responsible for providing further guidance on the implementation of the solutions.
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