Many French and Italian businesses have expressed their high appreciation of the Vietnamese Government’s measures to help firms surmount pandemic-caused difficulties.
The latest survey of 63 French companies conducted by the French Chamber of Commerce and Industry in Vietnam (CCIFV) shows that some additional measures issued by the Vietnamese Government, such as reducing social security contributions and waiving the penalties for late payment, are necessary for businesses to sustain operations, reported the Dau tu (Investment) newspaper.
However, longer-term solutions are still needed when it comes to added value tax and corporate income tax, respondents said in the poll.
CCIFV Director Adam Koulaksezian told the Dau tu (Vietnam Investment Review) newspaper that they welcome the Vietnamese Government’s issuance of some support measures for enterprises amid the pandemic.
A small French business operating in Vietnam’s food industry for 10 years voiced its hope to access loans with lower interest rates and a one-year grace period. Some others are expecting tax exemption and assistance in salary and house rent payment.
Michele D’Ercole, Chairman of the Italian Chamber of Commerce in Vietnam, said applying the “three on-site” model, which involves eating, sleeping, and working without leaving, is a big challenge to companies and manufacturers, but Italian businesses are exerting all-out efforts as customers around the world are waiting for their products.
He noted that businesses welcome any support measures taken by the Vietnamese Government such as exempting taxes and cutting interest rates, energy costs, or rent expenses.
Italian companies have already accessed the support measures rolled out by the Government in 2020, and they will continue making use of this advantage to cope with the pandemic’s impact this year, D’Ercole went on.
Ho Chi Minh City and neighbouring provinces like Binh Duong, Dong Nai, and Long An are still facing the COVID-19 complexity, he added, pointing out that the most important thing now is to quickly vaccinate workers in these localities so that factories can resume operations as soon as possible.
After the Vietnamese Government approved Resolution No 68/NQ-CP that features a relief package worth VND26 trillion (US$1.14 billion), a new aid package of about VND24 trillion in terms of taxes and fees is currently under consideration.
Prime Minister Pham Minh Chinh recently signed off Resolution No 105/NQ-CP on support for enterprises, cooperatives, and business households amid the COVID-19 outbreak. Accordingly, the pandemic-hit groups will benefit from exemption and reduction of taxes, fees, and land rent; reduction of electricity, water, and telecoms charges; along with other policies assisting workers and employers.