It is necessary to focus on solving difficulties for enterprises in order to develop their manufacturing and business activities, Prime Minister Nguyen Tan Dung said at the Government’s regular meeting on May 3-4.
He said the Government will promulgate a particular Resolution, focusing on solutions to unite difficulties, boost manufacturing and develop enterprises. It will also apply tax policies and solutions flexibly, such as allowing more time to pay taxes, including personal income tax, import duties and value added tax.
The government will increase spending on promoting trade, expanding export markets, and supporting human resource training for industrial manufacturing, especially in processing industries, support industries and medium and small-size enterprises.
In the first four months of 2012, the number of enterprises that dissolved or gave up their business continued to increase to 17,700, up 9.5 percent from the same period last year. Therefore, up to Apr. 30, in a total of 647,627 enterprises established, there are 463,802 still operating nationwide, accounting for 71.6 percent.
According to Minister of Investment and Planning Bui Quang Vinh, this proportion is reasonable and is at average level in the world. However, it is worrying that the number of new enterprises continuously declines while more and more businesses had to narrow, stop or wind up their operation, reflecting the difficult situation in the country.
The reasons for the difficulties in manufacturing and business come from the context of global and domestic economics and from the enterprises themselves.
However, also at the Cabinet meeting, Chairman of the Vietnam Chamber for Commerce and Industry (VCCI) Vu Tien Loc said that both domestic and overseas investors still highly value the medium and long-term potential of Vietnam’s economy, believing that the Government is on the right track.
It is necessary for businesses to suffer short-term difficulties to curb inflation in order to have a better macroeconomic environment in future. Moreover, the pressure of difficulties also creates opportunities for them to restructure and increase competitiveness.
In the general difficult context, the business community hopes that the Government will continue implementing administrative reform and creating favourable conditions for business to develop their activities, Loc added.
One of the important issues also discussed at the meeting was a draft of the State-owned enterprise (SOE) restructuring project, focusing on State-owned economic groups and corporations.
According to Prime Minister Nguyen Tan Dung, there are different types of SOE. They are set up for different purposes, for controlling the market, stabilising macro-economics, for the country’s development or for ensuring the public interest.
Dung stressed that the project needs to build particular mechanisms and institutions of each type of SOE in the spirit of separating business and public interests, as well as concentrate on core business activitities of the SOEs.-VNA