Category: Manpower

According to Finance Minister Dinh Tien Dung, the policy to support those affected by Covid-19 is about to be issued, including a 50% reduction in registration fees for cars, small and medium-sized enterprises, and specially injured enterprises. Today (June 16), the National Assembly discussed in the hall the Resolution on reducing corporate income tax (DN) payable in 2020 for enterprises, cooperatives, non-business units and other organizations. Delegate Vu Tien Loc (Thai Binh) stated: “Small and medium-sized enterprises are the area that creates the most jobs in this country, so support is to support workers. This is also a solution to support well-being, not just the economy. The very sensitive SME sector is prone to closure, but recovers and expands quickly.” According to Mr. Loc, because of the limited budget, it is not possible to support all businesses, at least support all small businesses. Please support the right small businesses as prescribed in the Law.

Delegate Phung Van Hung (Cao Bang delegation) said that support should not only be for small businesses but expanded to support both small and medium enterprises. “Small and medium enterprises both play an important role in the economy. This is a group that lacks resources, science, and technology, is weak in a management capacity, and has very poor credit access compared to large enterprises…” – Mr. Hung explained. The Cao Bang delegation suggested that the Government soon consider amending the Law on Corporate Income Tax and a number of other related laws to soon bring the Law on Small and Medium Enterprises to life. Meanwhile, delegate Pham Van Hoa (Dong Thap) stated that the regulations on supporting small businesses with a turnover of less than 50 billion VND and paying social insurance contributions under 100 employees are quite vague. “The business should have a real revenue of 55 billion dong, even 60 billion dong, but they will try to dodge to declare just under 50 billion dong, even 49.9 billion dong to enjoy the policy. I think it is advisable to clearly define all small businesses to be applied at a reduced rate,” emphasized the Dong Thap delegate. Explaining to the National Assembly, Minister of Finance Dinh Tien Dung emphasized: The resolution is one of the fiscal solutions the Government has proposed to support businesses in the current situation. Regarding the subjects, the drafting agency basically accepts and will report to the Government and the Prime Minister to report to the National Assembly soon. Regarding criteria, Minister Dinh Tien Dung said that criterion must be selected so that when organizing and managing smoothly, avoiding risks.

Minister Dinh Tien Dung informed: Recently, the Government has synchronously implemented fiscal solutions to support businesses. The Government issued Decree No. 41/2020/ND-CP dated April 8, 2020 on extending the deadline for paying taxes and land rents for those facing difficulties due to the impact of the Covid-19 epidemic. Regarding the reduction of fees and charges, the Ministry of Finance has so far issued 18 circulars, reducing fees and charges. Many types of fees and charges have been greatly reduced, including in the aviation sector. In particular, the reduction of service prices in the securities sector has had a great impact in recent times, contributing to stabilizing the market. In addition, policies such as family deduction for personal income tax have been decided by the National Assembly Standing Committee. Regarding cost reduction for enterprises, the Ministry of Finance has submitted to the Government to amend a number of decrees to adjust import tax rates, to assist in removing difficulties for enterprises’ production, import and export, including supporting the public sector. supporting industries, footwear, textiles. In addition, in the coming time, under the direction of the Government, the Ministry of Finance is developing and will submit to the Government a decision to reduce 50% of the registration fee for domestically produced automobiles; submit to the Government to submit to the National Assembly Standing Committee a resolution on environmental protection tax on jet fuel. These tax policies are intended to support particularly vulnerable businesses such as airlines. This is one of the solutions, but to remove difficulties for businesses, it is necessary to implement synchronous financial solutions. “According to regulations, businesses have self-calculated, self-declared and self-submitted. The spirit of this Decree is the same. However, in the process of management, we have to strengthen risk management, in case of necessity, we still have to inspect and check “- emphasized the Finance Minister.

The “fragile” recovery of the Chinese economy is raising questions about the future prospects of the global economy after the Covid-19 pandemic.

China’s experience so far shows that, although the pandemic has been contained, consumption and investment cannot quickly return to normal. A series of important recent statistics show that China’s factory output, consumption and investment continued to improve in May. However, there is little sign of a large enough recovery. for the economy to bounce back in a V-shape. Therefore, analysts are concerned about the global economic outlook. The concern is that if China – a country that has been successful in containing the pandemic – cannot lift confidence and bring economic activity back to normal quickly, the country will not be able to recover. what can be done here? “China’s experience so far has shown that the path to the global economic recovery will be fraught with obstacles,” said Shaun Roache, chief economist for Asia-Pacific at S&P Global. Ratings said. “We still expect China to recover in the second half of the year, but demand will not soar,” he said. The latest bright spot in the Chinese economy is that new home prices in May rose at the fastest rate in seven months, thanks to the easing of blockade orders. Along with that, industrial output increased by 4.4% over the same period last year. Retail sales fell 2.8% – a significant improvement from the 7.5% drop in April. Fixed asset investment fell 6.3% in the first five months of the year. Steel production also skyrocketed.

However, the gloom in private investment and consumption in China shows that domestic conditions are still weak and international demand has not yet returned. “Lack of demand is the main problem with China’s economy right now,” said Shen Jianguang, an economist at online retailer JD.com. Policymakers in China are still rolling out support packages cautiously. China’s central bank (PBOC) on June 14 launched an additional support package worth 200 billion yuan ($28 billion) for banks. “The official survey in China shows that the country’s large enterprises have not yet restored 100% of their capacity, even though the social distancing order has been lifted for 4 months. The challenge for small companies is even greater. Difficulties mainly come from needs. Both domestic and foreign demand are weak,” commented Chang Shu, chief Asia economist at Bloomberg. The latest data on China comes as analysts remain divided over the model of the global economic recovery. At the end of last week, White House economic adviser Larry Kudlow shared on CNN that it is “highly likely” that the US economy will recover in a V-shape. But just a few days before that, the Chairman of the Federal Reserve. US (Fed) Jerome Powell also warned that the recovery will take a long time. Economists at Morgan Stanley say the global economy is in a new growth cycle and GDP will recover to pre-pandemic levels by the fourth quarter. They forecast a “deep but short-term” world recession. “We have confidence in a V-shaped recovery, based on surprising growth numbers and recent policy action,” the firm said in its mid-year outlook. Economists at JPMorgan Chase & Co highlight the risks of a spike in debt and budget deficits, forcing governments to scale back fiscal stimulus. “This turning point, coupled with limited action by central banks, is a key factor in our forecast of an incomplete recovery throughout 2021,” the report said. The International Monetary Fund (IMF) last week warned that the global economy was recovering more slowly than expected and there was still “great uncertainty” about the outlook. The OECD forecasts that the world GDP will decrease by 6% this year, if the pandemic is contained. This process depends largely on the evolution of the pandemic. Chinese authorities are racing to control a new outbreak in Beijing. Nearly 100 people were infected in just a few days last weekend. “The May data shows an improvement, although not as fast as expected,” said Helen Qiao, chief China economist at Bank of America. there is a risk that economic activity could still be impacted again.”