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The Government “to reresh” the investment environment

(VLR) In the situation of complicated happening of the pandemic of COVID-19, in 2021, the Government keeps implementing drastic measurements to fight against the pandemic and to restore the economy. In addition, they keeps improving the business environment, mobilizing all resources to develop the country by means of proper and effective mechanisms and policies.

The Government to reresh the investment environment

The Government to reresh the investment environment

Drastically preventing the pandemic and developing the economy

One of the general goals that the National Assembly’s resolutions for the year of 2021 aim at: focusing on effective implementations of fighting and preventing the pandemic and restoring socio-economic developments; maintaining macroeconomic stability; controlling inflation; ensuring great balances; restructuring the economy together with innovating growth modal; improving productivity, quality, efficiency and competition abilities; developing local markets. In addition, implementing key projects and national key projects; making use of roles of key economic zones and metropolitan cities; speeding up digitalization and developing digitalized economy and digitalized society.

Ministries, sectors and localities need to keep implementing drastically, synchronously and effectively targets, tasks and solutions assigned on various fields in accordance to the Party and the Assembly’s resolutions and the Resolution no.01/NQ-CP dated January 1st, 2021 by the Government.
Prime Minister Pham Minh Chinh

At the first meeting on April 15th, 2021 after the Government’s member consolidation, Prime Minister Pham Minh Chinh asked ministries, sectors and localities to keep implementing drastically and effectively assigned goals, tasks and solutions on fields according to the Party and the Assembly’s resolutions and the Resolution no.1/NQ-CP dated January 1st, 2021 by the Government. At the same time, they should keep controlling inflations, ensuring macroeconomic stability and great balances; troubleshooting difficulties for business production; solving long-lasting problems; improving technology applications; promoting innovations and digitalization; developing digitalized economy and digitalized society; achieving the goals and tasks assigned in the next 6 months and of the year 2021 at the highest level.

The Government asked ministries, sectors, localities and agencies to keep seriously implementing solutions to prevent and fight against the pandemic in accordance to the motto “active prevention, early detection, rapid isolation, effective treatment, complete handling, quick stabilizing situations” and to individuals, to apply “5K+ vaccine”; to collectives, to apply “safe COVID prevention”, getting ready for deal with any situations.

The government asked production and service agencies to strictly apply prevention regulations and to strictly handle violations; to control immigration activities, strictly prevent and handle illegal entry; to organize vaccination urgently and safe, avoiding vaccine not being injected on-time and thus, being destroyed. The Ministry of Health was assigned to complete the plan, to study “vaccine passport” mechanism and to facilitate local vaccine production.

The Government asked heads of ministries, sectors and localities to take direct and comprehensive responsibility for the implementation of public capital disbursement as planned. They also asked the Ministry of Planning and Investment was assigned to assess disbursement of public investment capital over the past time; to identify synchronous solutions for the best disbursement rate, with priority for key infrastructure works; and to ensure quality and efficiency of public investment capital in accordance to legal regulations.

To implement the Resolution no.42/ NQ-CP on supporting people in need due to the pandemic of COVID-19, the Government agreed to issue a decree that extends deadlines for paying taxes and land-use in 2021. The Ministry of Labor- War Invalids and Social Affairs was assigned to review and evaluate effectiveness of implementations of the Government’s resolutions on measurements to support people in difficulty due to the pandemic of COVID-19.

More financial resources to maintain and restore production

On April 19, 2021, the Government issued the Decree 52/2021/ND-CP, extending the time to pay value-added tax, enterprises’ income tax, personal income tax and land rental in 2021. The tax extension is necessary for enterprises and individuals to have more financial resource to maintain and restore production to achieve the target of economic growth in 2021.

More financial resources to maintain and restore production

More financial resources to maintain and restore production

Thus, this is the third time the Government extended tax and land rental to support business community in difficulties due to the pandemic. Previously, on April 8th, 2020, the Government issued the Decree no.41/2020/ND-CP extend the time of paying tax and land rental. The extending time is 5 months from the date of expiration of the tax payment in accordance with the law on tax management.

In September 5, 2020, the Government issued the Decree no.109/2020/ND-CP to extend special consumption tax for domestically manufactured and assembled cars. In the Decree, domestic automobile enterprises manufacturing and assembling cars are allowed to extend the time of paying special consumption tax of the tax period of March, April, May, June, July, August, September and October 2020.

The tax derived was paid to the State budget from September 20th, 2020 to December 20th, 2020. According to the Ministry of Finance, the total amount of deferred tax was at VND 115,000bn. Due to the time extension, the budget revenue in 2021 will not decrease because tax payers have to pay taxes to the budget at the end of 2021.

Assessment showed the above policies have promptly removed difficulties for business production, contributed to the implementation of the targets of fighting the pandemic and restoring socio-economic developments. They helped improve business environment and mobilize all resources for the country developments with proper mechanisms and policies.

Tran Trinh Lam

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