Business
Various measures proposed to help ease Covid-19-hit enterprises
  • By Dai Viet | dtinews.vn | September 18, 2020 04:04 PM
The Prime Minister's Advisory Council for Administrative Procedure Reform has recommended different measures to help mitigate challenges for enterprises in Vietnam due to the impact of the Covid-19 pandemic.

According to the council, up to 47% of businesses in Vietnam had reduced staff numbers since the reoccurrence of Covid-19 in late July this year.

  

Up to 47% of businesses in Vietnam had reduced staff numbers since the reoccurrence of Covid-19 in late July this year


Dinh Thi Loan, a representative from a company in Hoc Mon District in HCM City said that her firm which specialised in farm produce exports to Europe had cut halved its workforce because of being affected by the pandemic.

Loan’s company mostly exported vegetables but now it is involved in the sale of shrimp, crabs and fish in the domestic market.

Tran Van Long from a tourism firm in HCM City said that his company cut 80% of its staff. The company would consider recruiting more staff when the situation is better.

The company has even turned into a face mask business to increase revenues amid the pandemic; however, it was quite challenging to compete with many kinds of domestically-made cheap products.

A recent survey by the Prime Minister's Advisory Council for Administrative Procedure Reform revealed that since late July when Covid-19 reappeared in Vietnam, around 20% of companies covered had to halt operations, 2% have stopped their operations and only 2% had not yet been affected.

The council warned that the redundancies would continue to happen widely from now to the year-end.

Under the council’s proposal, the government should take into account the 30% reduction of corporate income tax for all enterprises this year, instead of only ones which have the total revenues of no more than VND200 billion (USD8.69 million).

The other recommendations include the reduction of at least 50% of insurance in the 2020-2021 period, a suspension of insurance payments and a 50% cut in value-added tax.

Meanwhile, the council suggested that banks should offer preferential loans for investment activities and extend loan repayments as well as cut interest rates.

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