Many policies in support for businesses from the national and municipal/provincial administration were implemented by competent agencies in 2022, thereby helping businesses overcome difficulties and restore production. In 2023, these policies will continue to be deployed in favour for businesses across Viet Nam, and of course, including those in Da Nang

Production at Universal Alloy Corporation Viet Nam Co., Ltd in the Da Nang Hi-tech Park, Hoa Vang District). Photo: MAI QUE

Exemption, reduction and extension of thousands of billions of VND of taxes and fees

The Da Nang Tax Department said that the total amount of taxes, fees and charges exempted or reduced in 2022 for taxpayers were VND 1,385 billion. Specifically, there was a reduction of VND 800 billion in revenue according to Resolution No. 18/2022/UBTVQH15 dated March 23, 2022 and Resolution No. 20/2022/UBTVQH15 dated July 6, 2022 of the National Assembly Standing Committee on tax rates on environmental protection for gasoline, oil and grease.

In addition, there were a reduction of VND 350 billion according to the Government's Decree No. 15/2022/ND-CP dated January 28, 2022 stipulating the policy of exemption and reduction of value-added tax according to the Resolution No. 43/2022/QH15 adopted by the National Assembly on fiscal and monetary policies to support the programme of socio-economic recovery and development and a reduction of VND 100 billion according to Decree No. 103/2021/ND-CP dated November 26, 2021 stipulated by the national  government stipulating the level of registration fee for cars.

Besides, the Da Nang Tax Department estimated the tax amount to be extended according to Decree No. 34/2022/ND-CP dated May 28, 2022 of the naitonal government on extending the deadline for tax payment and land rent in 2022 at VND 920 billion, of which VND 158 billion was worth of the extended land rent.

With regard to credit support, according to the Da Nang branch of the State Bank of Viet Nam, the accumulated total debt has been restructured the repayment term and kept the same debt group for customers affected by COVID-19 by the end of November 30, 2022 was VND 23,126 billion with a total of 9,711 customers. The total value of debt exempted from interest rate reduction and kept unchanged was VND 4,385 billion.

In order to create favorable conditions for businesses to acess loans at reasonable interest rates, credit institutions reserved capital for lending to priority areas.

Accordingly, it was estimated that by December 31, 2022, the total outstanding loans to 5 priority areas, namely agriculture and rural exports, export, supporting industries, small and medium-sized enterprises (SMEs) and high-tech enterprises across the city reached more than VND75,200 billion, up 3.46% compared to the end of 2021.

Businesses can borrow capital with short-term interest rate up to 5.5%/year. Mr. Nguyen Hoang, Director of the An Khe Bamboo and Rattan Cooperative, said that the timely support policies of the national and municipal governments, such as directing credit institutions to spend capital for priority areas, have created favourable conditions for the cooperative’s production and business activities thereby ensuring revenue growth even though the number of orders at the end of 2022 decreased compared to the previous years.

Another policy is to support interest rates for SMEs borrowing capital from the Da Nang Development Investment Fund to implement projects to restore and expand production and business in the context of COVID-19 in 2022 according to Resolution No. 60/2021/NQ-HDND dated December 17, 2021 of the municipal People’s Council.

Mr. Nguyen Thanh Tam, Director of the Investment and Development Fund, said that by the end of December, till date, 7 SMEs have been eligible for loans.

The Management Board of Da Nang Development Investment Fund has approved a loan with a total value of VND 140.7 billion. It is estimated that lending to projects under Resolution No. 60/2021/NQ-HDND is 8 projects with a total loan value of about VND170.7 billion.

Many policies to support businesses from the national and local governments were implemented by relevant agencies in 2022. Workers are seen at the Da Nang Rubber JSC. Photo: M.Q

Continue to implement support policies

Entering 2023, many support guidelines and policies issued in 2022 continue to be deployed by agencies and units to support businesses and people.

Specifically, the Da Nang branch of the State Bank of Viet Nam directs credit institutions to continue implementing the programme of providing 2% interest rate subsidy per annum on loans according to Decree No. 31/2022/ Decree-CP of the national government and Circular No. 03/2022/TT-NHNN dated May 20, 2022 of the State Bank of Viet Nam.

In 2023, the Bank for Social Policies (VBSP) Da Nang will continue to provide loans in accordance with Resolution No. 11/2022/NQ-CP and provide 2% interest rate subsidy per annum on loans with interest rates of over 6% per annum from January 1, 2022 to December 31, 2023 according to Resolution 43/2022/QH15 dated January 11, 2022 of the National Assembly.

Meanwhile, Mr. Vo Minh, Director of Da Nang branch of the State Bank of Viet Nam, said that the city's banking industry implemented synchronously for the whole system with the support amount by the end of December 2022 was VND1, 5 billion.

In the coming time, the banking industry will continue to promote the implementation of interest rate support policies for businesses, cooperatives and business households in the city, grasp the actual support needs and create conditions for customers to access favourable and effective policies.

As predicted that 2023 would be a challenging year when some businesses face a decrease in orders and flobal inflation, local businesses suggested that in addition to the policies that have been implemented effectively, the city's administration continue to soon put it into practice more supportive policies, strengthen banking-business connection programmes to solve problems facing businesses.

Reporting by MAI QUE – Translating by A.THU