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News Bulletin 09 - Week 3 April, 2020
Amidst the complicated developments of the Covid-19 pandemic, governments and businesses are struggling to adapt and maintain business as usual, taking measures to limit negative impact and curb the spread of the virus. Noticeably, the past week, the Ministry of Finance has proposed exemptions of import tax for raw materials, supplies and components for processing and manufacturing export products.
The past week spotlight
Vietnamese Finance Ministry proposes tax exemption
Photo: An official from the Ha Noi Department of Taxation speaks to a taxpayer.
Recently, the ministry has collected opinions from ministries, branches and business associations to complete the draft decree amending and supplementing Decree 134/2016/ND-CP on export and import tax and Decree 125/2017/ND-CP on the export and import tariff.
Regarding the draft decree amending Decree 134, the Ministry of Finance has submitted documents to the Government and the Prime Minister proposing exemptions of import tax for raw materials, supplies and components for processing and manufacturing export products.
Let’s look at some other related financial and business news during the past week:
1. Covid-19 virus – Business impact and solutions of Vietnamese government
Due to swift and complicated developments of the COVID-19 pandemic, the Vietnamese Government has imposed numerous drastic measures and restrictions on personal movement to limit interpersonal contact and minimize the spread of the virus.
Particularly, in response to unprecedented challenges caused by the pandemic to businesses, the Government has recently issued several instructions on COVID-19 prevention regarding employment and work permits.
2. SMEs struggle to access credit support package
Small- and medium-sized enterprises (SMEs) are finding it difficult to access the Government's credit package worth 250 trillion VND (10.7 billion USD) to support those affected by the COVID-19 pandemic because of a lack of trust in their ability to repay.
3. HCM City tax revenues fall well short of target
HCM City’s daily tax revenues have fallen by 31 per cent in the first quarter of this year because of the Covid-19 pandemic, the chairman of its People’s Committee, Nguyễn Thành Phong, has said.
He told an online meeting last week that the revenues had fallen to VNĐ947 billion against a target of VNĐ1.64 trillion.
Its economy grew by just 0.42 per cent in the period, down from around 7 per cent a year ago. The worst affected of the city’s sectors are services and tourism. The number of foreign visitors fell by 42.2 per cent year-on-year.
4. GDP could shrink for first time since opening up economy
Vietnam’s GDP will shrink by 1 percent if the Covid-19 pandemic lasts until the end of the year, an economic think tank estimates.
The Vietnam Institute for Economic and Policy Research (VEPR) said in a report on Monday that GDP could shrink sharply in the second and third quarters before returning to growth in the last quarter.
5. Twelve products face risk of being investigated for trade defence measures
The Trade Remedies Authority of Vietnam has announced the list of 12 products which are at risk of being investigated for trade defence measures or origin fraud and illegal conveyance.
The list included hardwood plywood, mattresses, wooden cabinets and vanities, quartz surface products, seamless refined copper pipes and tubes, forged steel fittings, steel wheels, fabricated structural steel, steel propane cylinders and carton-closing staples exported to the US, tyres for buses and lorries to the EU and electric bicycles to both the US and EU.
6. US, Vietnam ink $42 m deal on boosting economic competitiveness
A $42 million US-Vietnam agreement will focus on making the private sector, startup ecosystems and human capital more competitive.
The agreement reflects the United States’ continued commitment to support Vietnam’s efforts to become a more open, innovative, and inclusive economy, said Daniel Kritenbrink, U.S. Ambassador to Vietnam.
7. The impact of Covid-19 outbreak on entry and work permits of foreigners in Vietnam
Due to swift and complicated developments of the COVID-19 pandemic, the Vietnamese Government has imposed numerous drastic measures and restrictions on personal movement to limit interpersonal contact and minimize the spread of the virus.
In response to quick increase of the number of new infections cases, the Government has recently issued instructions and measures on COVID-19 prevention regarding entry, work permits and residence of foreigners.
8. Vietnam-Cuba trade agreement officially takes effect
A new trade agreement between Vietnam and Cuba officially came into force earlier this month, and is expected to help bring bilateral economic, trade and investment ties on par with their sound political relationship.
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