Measures to help businesses through crunch time

(VOV) -Businesses regard value added tax (VAT) reductions as a practical measure to help them through a difficult time.

Despite the Government’s stimulus packages in 2012, many are not yet back on track in the wake of the global economic downturn. So they require further assistance from the Government’s incentive policies.

Phu Giang Packaging Company General Director Nguyen Nhan Phuong says his firm plans to upgrade technical facilities and is asking all businesses to improve the design and quality of their products in line with world market trends.

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As Vietnam is in the process of global economic integration they need to have a leg to stand on home turf and promote trade exchange against all odds in the world.

Phuong says Vietnam’s consumer goods are increasingly sought after in both domestic and foreign markets.

Dr. Luu Bich Ho, a former Director of the Ministry of Planning and Investment’s Development Strategy Institute, says as a developing country Vietnam has allowed international businesses to operate and invest in the country. In the face of tough competition domestic businesses are urged to restructure themselves in line with the State’s guidelines for their own good in the long run.

Chamber of Commerce and Industry Chairman Vu Tien Loc says most businesses expect the Government to help ensure macroeconomic stability and gradually control inflation. They hope to receive more incentive loans with lower interest rates as soon as possible, he adds.

Loc calls for intensive efforts to push through institutional reform and create a healthy business climate for all economic sectors.

“Helping businesspeople in need is a virtue of necessity,” Loc says, adding that lowering VAT rates will assist many businesses to reduce their production costs, clear excess stock, and meet increasing customer demand.