Tag: policies

PM Pham Minh Chinh directs easing of credit constraints and interest rate reductions to support businesses

The Railway Law 2017 is being reviewed and evaluated by units to identify specific amendments and supplement policies suitable to the new circumstances and to revive railway transport and promote the inherent advantages of this mode of transport. The competitiveness of railway transport compared to other modes is low, with the market share of passengers and cargo declining every year.

The Ministry of Labor, Invalids and Social Affairs has said that the 2013 Law on Employment prescribes many policies to support employment but limitations have been revealed during implementation. It has proposed that policies be added to support labor market development, create sustainable jobs, improve incomes, and expand unemployment insurance for beneficiaries as well as workers overseas.

Vietnam’s real estate market has exhibited a number of shortcomings in recent times, with prices rising compared to incomes and the market information database lacking synchronization and transparency. State management agencies are now reviewing regulations, identifying ways to diversify capital sources, and proposing policies to create new development drivers for the market.

Many new policies on labor and wages come into effect in September, such as a regulation on a two-day holiday for National Day, regulations on working time and rest periods for employees who operate, maintain, or repair gas distribution pipelines and gas works, and a pilot on work and vocational guidance and training for inmates outside of prison.

Enterprises have proposed that the government direct the maintenance of policies to support businesses in regard to taxes, fees, and credit, and to accelerate economic support packages. The State Bank of Vietnam should consider raising credit space for commercial banks to promote production and services, especially in key areas such as tourism, industry, trade, and agriculture, forestry, and fisheries.

South-central Binh Thuan province currently has 36 industrial clusters on a total area of nearly 1,200 ha and with more than 170 projects. To further develop the cluster, the province will issue a policy supporting investment in technical infrastructure.

Policymakers, businesses, and representatives from associations attending the Business Leaders Forum 2022 discussed the labor changes needed as businesses recover from Covid-19.

New policies taking effect from June include regulations on the establishment and transformation of enterprises in which 100 per cent of charter capital is held by the State, regulations on linking vocational training with foreign countries, and regulations on postal rates.

Under inland waterway infrastructure planning for the 2021-2030 period and vision to 2050, studies will be conducted on preferential mechanisms and policies to attract investment in developing a port system and building waterway infrastructure, including exemptions on water surface rentals, land rentals for 15 years, and import taxes on loading and unloading equipment.

Capital demand for implementing expressway projects to 2030 totals up to VND900 trillion ($39.41 billion), of which the State budget can meet VND600 trillion ($26.25 billion), with the remaining VND300 trillion ($13.16 billion) to be mobilized from domestic and foreign investors. In order to attract private investment, Mr. Nguyen Xuan Cuong, Deputy Director-General of the Directorate for Roads of Vietnam, said that the profit margin of build-operate-transfer (BOT) projects should be increased to over 15 per cent and the rate of State capital contribution could be increased to 70 per cent.

Minister of Industry and Trade Nguyen Hong Dien told the meeting of the National Assembly Standing Committee on petroleum management on March 16 that if tax tools are used up but still cannot control the petroleum price, social security policies will need to be applied to resolve the situation. He also suggested that ministries, sectors, and businesses complete strategic projects on petroleum reserves in the time to come.

A range of new policies are taking effect during February, such as those on VAT reductions, origin of goods, increased fees for conditional business appraisal in the seafood sector, strengthened judicial assessment in seafood, and land use levy exemptions for people with meritorious service, among others.

Industrial parks in cities and provinces around Vietnam have great demand for worker housing. Incentive mechanisms for social housing are adequate but the problem is that procedures are cumbersome and troublesome. It is therefore necessary to adopt breakthrough policies and separate processes for social housing projects.

The key North - South Expressway project has been delayed due to a lack of soil for embankments. The government has therefore issued a resolution on strengthening “specific mechanisms” for the People’s Committees of cities and provinces the project passes through.

In order for banks to continue to support businesses, especially those facing difficulties and that are sub-prime, it is necessary to have mechanisms and policies at a higher level to protect banks against potential huge bad debts in the future.

The government has agreed with a proposal from the Ministry of Finance (MoF) to supplement support measures for people and businesses affected by Covid-19.