Thousands of enterprises leave market every month

Prime Minister Pham Minh Chinh on September 26 chaired an online conference with the business community and localities on solutions to continue supporting enterprises in the context of the COVID-19 pandemic.

Attending the conference held at the Government headquarters, along with Prime Minister Pham Minh Chinh were also Deputy Prime Ministers, leaders of departments, ministries, central agencies, organizations, economic sectors, enterprises and business associations.

Besides, at live points of 63 provinces and cities directly under the Central Government, Secretaries of the Provincial and City Party Committees, Chairmen of People's Committees, leaders of departments, agencies, organizations and 1,200 delegates representing business enterprises and associations in the localities were also attending the conference

Flexible adaptation

The Prime Minister said that since the 4th outbreak of the pandemic, he has had many meetings with the domestic business community and FDI enterprises. If they have any request or proposal, the Government tries to satisfy them with the best possible conditions.

Emphasizing the viewpoint of harmonizing benefits and sharing risks, the Prime Minister said not to let difficulties make us pessimistic, confused, and afraid. The more difficult and complicated the situation is, the more it is necessary to unite, promote democracy, mobilize collective intellectual, listen to and respect each other's opinions, take difficulties and challenges as motivation to rise up, affirm ourselves, lead the country to develop and make changes, such as digital transformation.

After a period of implementing very drastic measures and determine in preventing the pandemic, with a change in strategy, we are gradually effectively controlling the epidemic, especially in key areas such as Ho Chi Minh City, Binh Duong, Dong Nai, and Long An provinces... To achieve this result was thanks to the great solidarity of the whole nation, including the business community’s important contributions.

According to the Prime Minister, in recent time, with the direction of the Politburo, the Secretariat, and with the companion and active support of the National Assembly and Government, the Prime Minister has been very determined to quickly promulgate policies and solutions to remove obstacles and support enterprises, employees and people.

In the coming time, the Government is authorizing to develop a safe, flexible adaptation scenario to effectively control the Covid-19 pandemic by building a draft of amendment and supplementation for many laws so that to continuously remove obstacles in production and business operation.

The conference focused on discussing good solutions to find ways for enterprises to safely, flexibly, effectively adapt to, and successfully fight against the epidemic while continuously recovering and developing the economy. Accordingly, if we only focus on fighting the epidemic, we will run out of resources; On the contrary, if we only focus on economic development, without anti-pandemic solutions, there is no guarantee for protecting the people’s health.

More supports for enterprises 

A report from the Ministry of Planning and Investment (MoPI) at the conference showed that the Ministry has submitted to the Government for promulgation a Resolution on supporting enterprises, cooperatives and business households in the context of the Covid-19 pandemic, that includes 59 tasks and solutions.

Among such 59 tasks and solutions, there are 21 related to the amendment and promulgation of policies and legal documents; 38 solutions related to guiding and promoting the implementation of policies on business support, and 18 tasks that need to be completed in September 2021. Currently, ministries, branches, and localities are actively implementing assigned tasks and solutions and they have achieved some specific results.

For example, the Government has ordered authorities to perform well the transport and circulation of goods between localities that are following social; Localities do not arbitrarily set up "sub-licenses" that obstruct the circulation of goods...

The National Steering Committee for Covid-19 Prevention and Control has directed to prioritize vaccination for workers in industrial parks, industrial clusters and production units.

Regarding support for employees and employers, the Government has issued Resolution 68 that includes 12 support policies with a total fund of about VND26,000 billion. Currently, the Ministry of Labor, War Invalids, and Social Affairs is finalizing and amending this Resolution in the direction of reducing procedures to make it available to reality so that to help remove obstacles for enterprises in accessing credit support packages.

The Government continues to extend the deadline for paying value-added tax, business and personal income taxes, and land rent in 2021 with a total value of about VND115 trillion. At the same time, it allows to deducting expenses when their taxable business income was identified using to support and sponsorship for Covid-19 prevention and control activities…

According to the MoPI, the business community complained there were still some limitations and existing obstacles in accessing the State's support policies. Therefore, the Ministry is urgently completing and submitting to the Government a program of sustainable economic recovery until 2023. The program includes solutions to support businesses to recover by increasing priority loans through the Small and Medium Enterprise Development Fund.

The Ministry of Industry and Trade (MoIT) continues to monitor, evaluate and consider a plan to reduce the cost of essential services such as electricity and gasoline by 10-30%.

In addition, the Vietnam General Confederation of Labor will soon complete the reduction of trade union fees for members at enterprises and cooperatives affected by the Covid-19 in 2021 and 2022, and report to the Standing Committee.

The MoIT recommends localities urgently develop and announce Covid-19 prevention, economic recovery and open up plans, study and propose solutions to build sustainable economic recovery programs until 2023...

Enterprises should be recognized as a subject in response to the Covid-19

According to Mr. Pham Tan Cong - Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), the situation has changed, Vietnam needs new thinking, a new perspective, strategy, and way of fighting the pandemic.

Businesses agreed and highly appreciates the Prime Minister's view that they must live with the virus for a long time. The pandemic cannot be controlled absolutely so they must adapt and have a suitable way of coping with it.

Regarding the Covid-19 response strategy, the VCCI Chairman proposed to change the direction that instead of focusing all efforts on one main front of prevention the disease, we also need, from now on, to focus on the second front of economic maintenance and development.

Both fronts are important and interact with each other. Good pandemic prevention and control can help maintain safe production and have the strength to win over the pandemic.

From this perspective, Mr. Cong proposes two solutions for fighting against the pandemic. Firstly, it is necessary to recognize businesses as a key subject in coping with the Covid-19, thereby trusting, empowering them with equipment and improving their on-site medical capacity.

Secondly, a solid economic front is a foundation for victory on the medical front, so it is vital to have a policy on resolutely protecting and supporting the maintenance of safe production and business activities in all difficult conditions so that to live along with the pandemic.

With the view that enterprises are subjects in the fight against Covid-19 and a key force on the economic front, at the same time determining to live along with the pandemic for a long time, the VCCI leader suggested to Prime Minister that in the structure of Steering Committee for Covid-19 Prevention and Control at all levels, it is required the participation of representatives from the business community.

Recalling about six principles stated by the Prime Minister in his conclusion at a meeting of the National Steering Committee for Covid-19 Prevention and Control on September 23, Mr. Cong emphasized principles No 5 and No 6 that regard vaccines, medicines and people's awareness are prerequisites.

"In short, the vaccine is the key. The economic opening must be synchronized with the vaccine coverage. Secondly, production must be safe. World experience shows that reopening the economy without complying with such two factors will lead to unpredictable consequences," emphasized the VCCI Chairman.

The VCCI also suggested it needs to change the name of the "Covid-19 Prevention and Control Steering Committee" into the "Covid-19 Prevention and Economic Recovery Steering Committee" to carry out the two tasks in parallel.

It is also necessary to study and perfect the "Covid-19 Green Card" system by using one platform/application, to link data between relevant ministries and sectors and relevantly adjust the regulations on entry and work permits …

 Thousands of businesses leave the market every month

The General Statistics Office reported that in the first eight months of 2021, the whole country had 81,600 newly registered enterprises, but 85,500 enterprises left the market. Thus, on average, nearly 10,700 businesses leave the market every month. The number targets of newly established enterprises, registered capital and employees in August all decreased sharply compared to the same period in 2020.

In particular, many enterprises are facing the risk of bankruptcy. Domestic and international supply chains are broken. Workers lose their jobs while farmers and fishermen cannot sell their products. Many workers in the provinces have no jobs, no food and no reserve money.

Since the outbreak of the Covid-19 pandemic affecting businesses, the Government has had many policies including Resolution No. 86/NQ-CP and Resolution No.105/NQ-CP on supporting enterprises, cooperatives and business households in the context of the Covid-19 pandemic.

Besides, there are many policies and solutions to support businesses according to other Government Resolutions such as policies on flexibly implementing regulations on Covid-19 prevention and control, supporting workers and employers, corporate income tax reduction and other fiscal policies. Many policies are also focusing on supporting businesses, especially small and medium-sized enterprises to improve their competitiveness...