Vietnam’s Ministry of Finance Working on US$1 bil Support Package for Businesses

July 28, 20213:08 pm1221 views
Vietnam’s Ministry of Finance Working on US$1 bil Support Package for Businesses
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Businesses in Vietnam that got hit by the pandemic will get financial help. The Ministry of Finance (MoF) is on a discussion to distribute a VNĐ24 trillion (US$1.04 billion) support package for businesses by exempting and reducing tax and fees. The proposal will be sent to the National Assembly (NA) and the Government for approval once completed.

In addition, the ministry also submitted a proposal to postpone the implementation of Circular 40/TT-BTC on tax for business households until January 1, 2022 to create more convenience for taxpayers.

Earlier, the Government has approved a VNĐ26 trillion support plan for businesses and individuals affected by the pandemic. The money is currently being disbursed.

MoF has also requested the Government to cut regular spending by 10 percent and conference and business fees by 50 percent to gain more resources to fight the pandemic. At the same time, the Government needs to improve the efficiency of public investment, including official development assistance projects. They should consider cutting inefficient projects while managing securities, insurance, and currency markets. Fiscal and monetary policies should also be well coordinated, Vietnam News reports.

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Minister of Finance Hồ Đức Phớc added that the ministry has provided nearly VNĐ8.2 trillion to the Ministry of Health (MoH) to cover vaccine costs, and another VNĐ12.3 trillion is on the way.

Regarding procurement of medical supplies and equipment for pandemic prevention and control, the minister said the issue had been resolved in Government resolutions which allowed the appointment of contractors for procurement in emergency conditions. The MoH is responsible for pricing and trading in accordance with Government guidance.

“Currently, the MoF has issued a circular guiding localities and the MoH to make timely procurement for pandemic prevention and control,” he said.

The current stressful issue is the complicated pandemic, he said, adding that the Government and the Prime Minister had been taking proactive and drastic measures in the pandemic fight to ensure socio-economic development.

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