Business support measures
The Government has issued a resolution on socioeconomic recovery and development and the deployment of the National Assembly’s Resolution 43/2022 on fiscal and monetary policies to help the economy overcome the difficulties caused by Covid-19.
According to Resolution 11, the Government will continue employing policies to support the recovery of enterprises, cooperatives and household businesses, such as reducing and exempting taxes and fees and extending the tax payment deadlines.
Specifically, the Government will reduce the value added tax by two percentage points in 2022, applicable to goods and services which are currently subject to the 10% value added tax. The environmental protection tax on jet fuel and the registration fee for locally assembled or manufactured cars will be halved, while the Stateowned land rents for lessors who had to suspend business and production due to Covid-19 will be cut by 30%. The Government will continue extending the deadlines of the corporate income, personal income, value added and special consumption tax payments in 2022.
Loans that enterprises, cooperatives and household businesses borrow from commercial banks will be entitled to a lending rate reduction of 2% per year in the 2022-2023 period.
Besides these policies, the Government will stabilize the capital for mediumand long-term loans and asked credit institutions to reduce the lending rates by 0.5%-1% in 2022-2023.
The charter capital of joint stock commercial banks in which the State holds over half of the charter capital will be increased, using their aftertax profits, and the charter capital hike for the Vietnam Bank for Agriculture and Rural Development will be sourced from the State budget.
In addition, obstacles in the spending and management of the science and technology development fund in enterprises will be removed to facilitate firms to renovate technologies, incubate scientific and technological businesses, commercialize scientific research and technology development results.