Despite Government support, many businesses and sectors are still striving to escape the general downturn independently.
According to the Ministry of Finance (MoIT), more than 6,000 businesses have resumed their operations after Resolution No 13 on tax breaks and extensions for domestic businesses was adopted.
Hoa Phat Group General Director Tran Xuan Duong, working for one of Vietnam’s biggest steel producers, says that production snags have forced the group to seek stock outlets in conjunction with other operators.
Luong Van Thang, President of the Viet-Tiep Lock Joint Stock Company’s Executive Board, reports his company continues to seek an edge over its competitors. His company’s strategies focus on producing high-quality products at low prices, ensuring capital circulation, limiting credit loans, and reducing costs to a minimum as a means of stabilising business operations.
Le Ngoc Hoa, General Director of the Transport and Construction Project Corporation No 4, says it is seeking to overcome the current difficult environment by accelerating some key projects to enable early handovers to investors, thereby creating revenue to pay workers’ salaries and invest in other projects.
At the same time many ministries, sectors, and localities are implementing their own measures, including lowering interest rates, restructuring debts, and offering preferential tax rates. The Ministry of Industry and Trade has proposed reducing value added tax (VAT) from 10 percent to 5 percent for several sectors as well as lowering land rent by 50 percent.
Nguyen Thanh Hoa, Deputy Head of the Planning Department under the Ministry of Industry and Trade, says the Domestic Market Department will assist businesses from State groups and corporations to deal with excess stock by encouraging them to consume each others’ goods.
The Ministry has also worked with local industry and trade departments on solutions to the difficulties businesses are experiencing. The Government will allocate VND30,000 billion from the 2013 capital investment construction in advance to ensure key projects are completed on schedule.
Businesses find a way out of the mess
Despite Government support, many businesses and sectors are still striving to escape the general downturn independently.
Source: VOV
