Prime Minister of Vietnam: To reduce lending interest rates and continue implementing tax reduction policies and tax deferral to support production and business in Vietnam

Prime Minister of Vietnam: To reduce lending interest rates and continue implementing tax reduction policies and tax deferral to support production and business in Vietnam (Image from the internet)

To reduce lending interest rates and continue implementing tax reduction policies and tax deferral to support production and business in Vietnam

On October 7, 2024, the Prime Minister of the Government of Vietnam issued Official Telegram 103/CD-TTg regarding support for enterprises in overcoming difficulties, promoting production and business operations in Vietnam towards the end of 2024 and in subsequent years.

According to Official Telegram 103/CD-TTg of 2024, nearly 4 years into the 2021-2026 term, under the leadership of the Communist Party, supervision of the National Assembly, the Government of Vietnam, and the Prime Minister of the Government of Vietnam have decisively and promptly directed, proactively managed macro policies flexibly, ensuring the major balances of the economy, and simultaneously resolving the difficulties and obstacles faced by businesses.

Vietnamese enterprises have gradually overcome difficulties, confidence has been reinforced, and internal resources have been strengthened; the economy has achieved high growth compared to other countries. Predictably, by the end of 2024 and in the following years, the Vietnamese economy will still face many challenges, and enterprises' internal resources, especially in the private sector, will continue to face many difficulties.

Ministries, central authorities, and local authorities need to continue to be decisive and promptly direct and manage with the spirit of placing people and enterprises as the central subjects, maintaining and ensuring coherence between policy guidelines and their implementation, aiming to consolidate trust, improve people's living standards, and enhance enterprise capacities.

Simultaneously, the Prime Minister requests Ministers, Heads of ministerial-level agencies, agencies under the Government of Vietnam; Chairpersons of the People's Committees of provinces and centrally administered cities to concentrate on implementing crucial tasks and solutions.

Assign the Ministries, agencies, and local authorities to create and issue policies in a manner that fosters a favorable environment for business development, including for small and medium enterprises to enable this type of enterprise to rise and develop. Encourage mechanisms for large enterprises to support and promote small and medium enterprises to create domestic value chains and develop supporting industries within the country. Support policies need to be practical and effective for enterprises to compete healthily and efficiently across central authorities.

Promote public-private cooperation mechanisms, while researching some breakthrough initiatives to transition the economy to a green economy such as: (i) Developing renewable energy by leveraging geographical advantages near the equator and tropical monsoon climate; (ii) Developing green industrial-service clusters; (iii) Developing and producing green hydrogen and ammonia with competitive value.

In which, the Prime Minister has assigned the State Bank of Vietnam to implement the following content:

- Instruct credit institutions to continue reducing costs, enhancing the application of information technology to reduce loan interest rates, promote credit growth, focusing on business production fields, priority central authorities, and growth drivers of the economy (traditional growth drivers and new growth drivers).

- Urgently lead and coordinate with relevant agencies to resolve difficulties and obstacles, effectively deploy a credit package of 140 trillion VND for social housing loans, and preferential credit programs in the fields of forestry, fisheries, etc.

Additionally, the Ministry of Finance is also tasked with researching and formulating appropriate tax policies to support enterprises in sustainable development, including small and medium enterprises.

Continue to effectively implement tax reduction policies, extend tax payment deadlines already issued; accelerate the progress of value-added tax refunds for enterprises in accordance with the law.

Moreover, local authorities are also required to actively and positively meet their jurisdiction, engage, exchange, and listen to the suggestions and recommendations of enterprises to promptly develop goals, tasks, solutions for development, support, and assist enterprises in their areas, especially small and medium enterprises, enterprises facing difficulties due to storms, finance issues, legal procedures, land clearance, etc., according to regulations; if beyond jurisdiction, report to the competent authorities.

More details can be found in Official Telegram 103/CD-TTg issued on October 7, 2024.

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