Minister of Finance Vuong Dinh Hue assured the public that theGovernment's 29 trillion VND (1.38 billion USD) business support packagewill make it into the hands of the people who need it most via atransparent process.
In an interview with the GovernmentWeb Portal on May 22, Hue said the support package, which consistsof financial measures, would help businesses lower costs, boost salesand secure needed capital.
To ensure transparency, theministry has requested agencies to issue appropriate guidelines andtrain taxation officials at the local level to implement the measures inthe package in a fair and timely fashion.
"What isimportant here is to increase aggregate demand which means we willaccelerate disbursements in public investment projects, State budgetfunds, Government bond proceeds and other national target programmes,"he said.
The ministry has instructed the State Treasury towork closely with the ministry- and provincial-level finance andplanning and investment officials to grant capital to basicinfrastructure projects, enabling construction to begin as soon aspossible. The construction works would in turn create demand in thebuilding materials industry which is burdened with large unsoldinventories.
Hue said the Government will add 2trillion VND (96 million USD) in the form of loans to consolidate dikesand build pumping stations for irrigating paddy fields in the southernregion. The Government will also allow provinces to conduct their ownpublic procurement processes with a budget of up to 1.7 trillion VND (82million USD).
Hue said tax breaks in the package willeffectively provide floating capital totalling 16 trillion VND (768million USD) which will otherwise have been paid in the form of taxes.However, he noted, enterprises that have ceased operations or areoperating at a loss will not benefit from the corporate tax reductionsin the package.
"The beneficiaries will be mainly small-and medium-sized enterprises and businesses that are labour-intensive,"he said, noting that distribution and logistics enterprises wouldbenefit, as well as manufacturing enterprises.
In themeantime, the Government will increase funding for trade promotion onboth domestic and international markets, Hue said.-VNA
In an interview with the GovernmentWeb Portal on May 22, Hue said the support package, which consistsof financial measures, would help businesses lower costs, boost salesand secure needed capital.
To ensure transparency, theministry has requested agencies to issue appropriate guidelines andtrain taxation officials at the local level to implement the measures inthe package in a fair and timely fashion.
"What isimportant here is to increase aggregate demand which means we willaccelerate disbursements in public investment projects, State budgetfunds, Government bond proceeds and other national target programmes,"he said.
The ministry has instructed the State Treasury towork closely with the ministry- and provincial-level finance andplanning and investment officials to grant capital to basicinfrastructure projects, enabling construction to begin as soon aspossible. The construction works would in turn create demand in thebuilding materials industry which is burdened with large unsoldinventories.
Hue said the Government will add 2trillion VND (96 million USD) in the form of loans to consolidate dikesand build pumping stations for irrigating paddy fields in the southernregion. The Government will also allow provinces to conduct their ownpublic procurement processes with a budget of up to 1.7 trillion VND (82million USD).
Hue said tax breaks in the package willeffectively provide floating capital totalling 16 trillion VND (768million USD) which will otherwise have been paid in the form of taxes.However, he noted, enterprises that have ceased operations or areoperating at a loss will not benefit from the corporate tax reductionsin the package.
"The beneficiaries will be mainly small-and medium-sized enterprises and businesses that are labour-intensive,"he said, noting that distribution and logistics enterprises wouldbenefit, as well as manufacturing enterprises.
In themeantime, the Government will increase funding for trade promotion onboth domestic and international markets, Hue said.-VNA
