Specialists advocate an pressing and sensible supplementary help bundle for individuals and companies presently

Within the context of very sophisticated developments of the Covid-19 epidemic on the planet and in Vietnam, though below management, the epidemic poses many new and bigger dangers and challenges, requiring robust choices. extra decisive and related. The Nationwide Meeting and Authorities have had many robust insurance policies and options to regulate the epidemic, velocity up the vaccine course of and help individuals and companies, within the context of many provinces and cities implementing social distancing in accordance with the Directive. 16. Nevertheless, the implementation continues to be restricted, new difficulties seem, requiring extra pressing implementation and increasing and including help packages and options in a well timed method.

Whereby, Along with the present primary precedence is illness management and accelerating the vaccine technique; Dr. Can Van Luc, Chief Economist of BIDV, instructed 7 packages, pressing help options for individuals and companies presently as follows:

Firstly, the Authorities directs to urgently evaluate and consider the outcomes of the implementation of help packages as much as the current time and instantly take away obstacles within the implementation course of. Instance, Decree 52/2021/ND-CP dated April 19, 2021 has expired to use for tax and land lease deferral from July 31, 2021; So what is going to the extension be like? Round 03 of the State Financial institution on debt deferral and debt restructuring efficient from Might 17, 2021, additionally it is vital to think about and amend quickly after the SBV completes public session.

Particularly Decision 68/NQ-CP dated July 1, 2021 on quite a few insurance policies to help staff and employers dealing with difficulties because of the Covid-19 pandemic (VND 26 trillion). As of August 12, 2021, in accordance with data from the Ministry of Labour, Invalids and Social Affairs, the full variety of supported employees is over 13 million individuals with a complete quantity of practically 6,000 billion VND (23%), by which primarily insurance coverage insurance policies help 12 million staff with the quantity of about 4,400 billion dong; new money help coverage for greater than 1 million staff with the quantity of 1,300 billion dong; the mortgage coverage to pay wages and restore manufacturing has supported greater than 42,000 staff with an quantity of over 145 billion VND…and so forth. Clearly, the implementation stage continues to be sluggish, particularly within the context of the epidemic and the implementation of the extension. How drastic is society right this moment? and particular implementation deadlines are wanted to expedite this invaluable help.

These insurance policies, together with different payment and payment discount packages, ought to be calculated for extension, no less than till Vietnam achieves herd immunity (the top of the second quarter of 2021). On the identical time, it’s advisable to think about adjusting the help funds from one element to a different which is extra sensible.

Second, the Authorities considers it quickly broaden the thing of help to all casual employees (self-employed) with a subsidy of 1 million dong/particular person with the dimensions 29,300 billion VND, (complete variety of staff in 2020 is 54.6 million individuals, of which about 29.three million individuals (53.7 %) are self-employed), other than the particular help of the localities below Decision 68. In keeping with our collected information, to date, localities have solely supported self-employed employees with an quantity of about 2,370 billion VND, too small in comparison with pressing want. Within the context of the epidemic, it’s essential to strengthen the appliance of IT in registration, appraisal and cash switch as we now have instructed. (We are going to analyze and counsel how one can do it quicker and extra efficiently in one other article).

Third, with the electrical energy invoice help bundle; ought to scale back extra sharply, additional scale back electrical energy payments for individuals and companies, equal to the primary part of 2020 (about 9,300 billion VND); Accordingly, EVN might think about increasing the beneficiaries, with a further discount of about VND 6,800 billion.

Fourthly, with the telecommunications help bundle, presently introduced, with an estimated worth of about VND 10,000 billion, however primarily to extend advantages and incentives for patrons, indirectly scale back the tariff, so solely have an effect on sure objects (like customers of pay as you go providers, those that are utilizing preferential packages is not going to have a lot impact as a result of many individuals haven’t used up all promotions…). Accordingly, one of the simplest ways to help is to cut back the freight fee by 20-30% for about three months (Q3), as a result of that counts in direction of the price of the enterprise and the help is extra sensible.

Fifth, it’s essential to be decided and urgently take away bottlenecks and disruptions in provide chains and manufacturing chains for individuals and companies. With the individuals, don’t let the phenomenon of disruption of the provision chain of important items and providers happen (each inflicting difficulties for individuals and growing costs as a consequence of transportation and journey difficulties; that is additionally a undeniable fact that occurred in Vietnam). some localities social distancing). Accordingly, it’s essential to be extra constant about the way in which the checkpoints and shippers function in social distancing areas (keep away from the phenomenon of 1 place, the identical as right this moment). With enterprise, paradigm “two spot, one inexperienced” (consuming and dealing on the spot, in one other secure place, when vital, it may be an isolation place or one other isolation place organized by the enterprise) proved to be fairly efficient, extra appropriate and is being applied by Thailand below a program referred to as “Manufacturing facility Sanbox”. All employees will likely be examined as soon as per week. After that, those that are constructive will likely be remoted and/or handled. remedy, and the adverse group is vaccinated….vv Together with that, manufacturing forces, taking part on this provide chain want to present precedence to early vaccination.

Sixth, along with the 20 trillion dong help bundle that the Ministry of Finance is proposing; want to extend entry to capital to help liquidity for companies. Accordingly, quickly take away obstacles for SCIC’s funding plan to purchase shares in Vietnam Airways in addition to personal airways (within the route of permitting loans at negotiable rates of interest, with preferential remedy for airways). will not be struggling losses however medium-long time period restoration prospects are constructive). TEnhance entry to capital, help liquidity for SMEs and should embrace the above-mentioned personal airways (within the type of rate of interest help with focus, focus with a credit score bundle of about VND 60 trillion). The estimated actual rate of interest help worth is about 2,500 billion VND. Some fundamental circumstances akin to lending rate of interest about 4%/yr (ie the rate of interest help stage is about 4%/yr in comparison with the market fee). The lending is completed by means of industrial banks and SME Growth Fund (probably along with the assure of the SME Credit score Assure Fund). Mortgage time period is about 1 yr, capital supply for rate of interest compensation from the state funds; specializing in areas closely affected by the epidemic akin to transportation, tourism, lodging – meals, healthcare, schooling – coaching…and so forth.

The full worth of the above further help packages is about VND 40 trillion (0.62% of GDP in 2021), to not point out the worth of help additionally will increase when adjusting and lengthening present insurance policies.

Seventh, quickly develop a technique for socio-economic restoration and growth within the context of the “new regular” and after the Covid-19 epidemic. with the intention to actively make the most of alternatives for a robust restoration in addition to management arising dangers (rising costs, rising inflation, provide chain disruptions, labor chains, and so forth.) to attain the objectives of the financial growth plan- Socialization interval 2021-2025 and long term.

Dr. CAN VAN Luc (BIDV Chief Economist)