Many highly practical support policies have been released by national and municipal/provincial governments so as to help Vietnamese businesses overcome coronavirus-stricken difficulties and challenges. This year, the continuous implementation of effective support solutions and policies is what domestic enterprises, including those from Da Nang, expect most in the hope of ‘keeping their heads above water’ in challenging times and promoting their production and business activities.

Enterprises wish to enjoy timely support policies to overcome financial difficulties triggered by the COVID-19 resurgence. Working ambiance is recoded at the Huu Nghi Production and Trading Joint Stock Company in the Da Nang Industrial Park, Son Tra District. Photo: M.QUE

Deputy Director of the Da Nang Tax Department Luu Duc Sau said his agency is actively implementing Decree No. 52/2021/ND-CP adopted by the national government in April.

The Decree proves extension of time limits for payment of value-added tax, corporate income tax, personal income tax, and land rent fees to support businesses and people suffering from the COVID-19 pandemic.

The Decree shall be applicable to enterprises operating in agro-forestry-fishery, food processing, textile, crude oil and natural gas exploitation, water supply and treatment.

The municipal Tax Department has been received a large number of registrations for extension of time limits for payment of value-added tax, corporate income tax, personal income tax, and land rent fees via online, in-person and postal submissions.

Under the Decree, a five-month extension is given to value-added tax of the assessment periods of March, April, May, June, the first quarter and the second quarter this year. This means the payment of VAT of March assessment period shall be extended to September.

Timeframe for payment of value-added tax of July and August shall be extended by four and three months, respectively.

Payment of corporate income tax in the first and second quarters shall be extended by three months, according to the Decree.

A six-month extension is given to payment of land rent fees, starting from May 31, 2021.

This is the third time the national government has introduced tax and land rent payment deadlines since the first locally transmitted COVID-19 cases reported in Viet Nam on January 23, 2020.

In similar supportive move, on April 2, 2021, the State Bank of Viet Nam (SBV) has issued Circular No. 03/2021/TT-NHNN amending and supplementing a number of Articles of Circular No.01/2020/TT-NHNN dated March 13, 2020.

Many supportive policies are being implemented by credit institutions and banks in favour of businesses. Goods handling is captured at the Viet Nam Post's Central Shipping and Logistics Centre in Hoa Khanh Industrial Park. Photo: M.QUE

Accordingly, the new regulations request credit institutions and the branches of foreign banks to restructure loan maturities, waive and reduce banking fees and interest rates, and maintain the debt classifications to support customers affected by the COVID-19 crisis.

In Viet Nam, debts are currently classified into five groups based on their risk status: standard debt, debt needing special attention, subprime debt, doubtful debt, and potentially irrecoverable debt.

Previously, many commercial banks were worried if debt classifications were not extended, bad debts would increase sharply.

To qualify for maintaining the debt classifications, the debts must arise from lending and financial leasing activities with the obligation to repay the principals and/or interest from January 23, 2020, to March 31, 2021.

Besides, borrowers must be unable to pay the debts and/or interest in time because of decreases in revenues and incomes caused by the impacts of the pandemic.

In parallel with the support policies from the national government, the Da Nang administration has actively implement preferential policies in favour of businesses amidst the virus resurgence.

The municipal government has approved the expansions of the current list of aspects eligible for loans from the Da Nang Development and Investment Fund (DDIF) so that more businesses can find it easier to access preferential credit.

Over the past time, the Fund has focused on mobilising capital from international financial institutions for its stronger financial capacity, thus helping contribute to the provisions of preferential loans to infrastructure projects across the city and reduce public investment funded by the State budget.

In order to significantly enhance its operational efficiency, in the coming time, the DDIF will reduce lending interest rates to only 6.5% per annum.

Reporting by MAI QUE – Translating by A.T