According to the Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), the Covid-19 epidemic is the main cause of the decline of enterprises.
According to a quick VCCI survey conducted in late March and early April, the impact of the pandemic on business and production activities of enterprises is very serious.
Specifically, 82%of businesses thought that revenue in 2020 would be reduced compared to 2019, of which 30% of businesses forecasted a decline of 30-50%, while 22%of businesses would decline by more than 50%.
According to VCCI's survey, if the pandemic continues, nearly 30% of enterprises can operate for no more than three months, 50%of enterprises can only survive for half a year. The consequence of this trend will be that millions of workers are at risk of losing their jobs in the coming months.
Facing this situation, Dr. Vu Tien Loc, Chairman of VCCI, said that no one could predict when the disease would pass, but one thing is certain that the consequences and the impact of the disease on the economy will be lasting and it can’t be recovered when the epidemic ends Businesses still face many difficulties in the near future.
Therefore, VCCI continued to send documents to the Prime Minister to propose some solutions to support businesses.
Accordingly, VCCI expects that the epidemic is under relatively good control, except for a limited number of industries/sectors that need to temporarily close, encouraging and creating favorable conditions for production. Circulation of goods is carried out normally with conditions to fully comply with disease prevention measures so that enterprises can save themselves, maintain production and business, and ensure social security.
VCCI also proposed to extend the time to carry out administrative procedures related to business investment, especially to foreign investors because of the disease conditions that can’t enter Vietnam to complete the procedures in time according to regulatory requirements.
Regarding fiscal policy, VCCI proposed to immediately suspend the payment of VAT, corporate income tax, personal income tax of employees, social insurance, union fees for waiting specific policies because the implementation process is still delayed, enterprises may stop operating and go bankrupt before the mechanism and policy are applied.
Along with allowing the transfer of losses for the next five years, VCCI proposed to allow the deduction of losses of 2020 due to the impact of the Covid-19 epidemic to the profit year of 2019. This allows businesses to pay taxes within two years of 2019-2020 and help avoid bankruptcy for businesses that have profits in 2019 but lose a lot in 2020 due to the impact of the Covid-19 epidemic.
Regarding credit policy, businesses also propose a further reduction of 2-3% per year for new and existing loans (to about 4-5% per year for VND loans and 2-3% per year for USD loans) to different groups of customers affected by the disease.
Along with that, VCCI also proposed not to adjust the regional minimum wage for 2021; suspend employers and employees contributions to trade union fund, social insurance, health insurance, unemployment insurance in 2020.
Regarding the policy of supporting some areas seriously affected by the Covid-19 epidemic, VCCI proposed in the field of tourism, proposing to allow 50% of tourism deposits in 2020 to support production business or 50% reduction of travel deposit, immediate for 2020.
Regarding logistics, VCCI proposed to reduce seaport fees to 50% in 2020 and requested the Ministry of Transport to work with foreign shipping lines to request to reduce the excessive and unreasonable surcharges like nowadays. In the field of road transport, it is suggested to extend the toll collection time to reduce BOT costs.
Despite offering a series of recommendations, the Chairman of VCCI still said that businesses need to monitor the situationclosely, must save themselves, continue to promote initiatives and solutions to continue to survive and develop.
During the "post-Covid-19" period, according to Mr. Vu Tien Loc, the economy will restructure and transform its business model so Vietnam will face unprecedented opportunities and challenges. Therefore, synchronous reform of institutions, infrastructure and humanresources will be a platform for businesses to grow.
Source: VCN
Key words: fifty percent, enterprises, survive, half a year, VCCI, continues, petition, Government, support
