Solving the difficulty

I attended the conference “New year’s meeting between city leaders and enterprises” on the morning of 03/12/2013 with the participation of Mr. Le Manh Ha - Vice Chairman of HCMC People's Committee and a number of senior officials of tax and customs sectors.

According to the survey result of difficult situation of enterprises counted and announced at the conference by Hepza, 84% of enterprises complained that costs, fees and taxes were very high in Vietnam. The guidelines implement of the resolutions of the Government to save enterprises was issued and implemented too slowly. The interest rate banks have lowered but only big enterprises were loaned with interest rates of 10-12%, the majority of small and medium enterprises had to loan at rate > 13%, while The State Bank has announced the interest rate for this object down to 12% applied from 12/24/2012.

According to the commitment and AFTA implementation of Vietnam, in 2015, all imported goods have 0% tax rate, however, goods of Vietnamese enterprises meets difficult to compete with imported goods of the same kind due to interest expense higher than other countries in the region. Difficulties heap up difficulties, and the risk in crisis of confidence between enterprises and enterprises (overdue debt and bad debt), between enterprises and banks (bad debt) is increasingly evident. The health of enterprises goes down, (mainly non-state enterprises and enterprises with 100% domestic capital, small and medium enterprises) and living standard of workers increasingly reduces ... The impacts of policy change such as change in the USD exchange rate, tax calculation, land tax ... in recent years have also made many enterprises turn profit into loss, loss into bankrupt.

Enterprises needed a stable policy mechanism for long-term, creating clear corridor for business activities. The State should suspend the issuance of taxes, charges with enterprise objects and people, having a policy of tax free, tax reduction for enterprise and workers timely to reproduce and create jobs for the society ... were the earnest recommendations of the Association of HCM City leader submitted to the Government.
Resolution 02 of the Government issued on 07.01.2013 as a medicine to reduce the “side effects” of Resolution 11-CP gave 4 solutions to remove difficulties for business production, supporting markets, settling bad debts. At the conference, many enterprises told that they had chosen to stop operation as the safe and gentle solution. Their reasoning was “little work little loss, more work more loss, no work no loss”.

Implication of the discontinued operation was the employees without jobs - unemployment rising - the lives of workers becoming more difficult ... What's Next? – increasing theft, robbery, drug dealers so on and so on. In short, if all enterprises chose the project “capital preservation”, they were contributing to aggravate insecurity and social order! The fact that after the Lunar New Year, some owners/ mistress of medium and small enterprises accepted the “sitting idle”, depositing the accumulating capital for savings account.

Cycle of the globally economic downturn, at some point, will hit the bottom, and the economy will recover. Then, the opportunity will only come to enterprises which carefully prepare to go 

NHQ