Start up business loans grants

This is the third time that VABA has made the since the beginning of 2020 when international and domestic travel restrictions due to the Covid-19 pandemic laid the industry low. It also wants the government to roll over airlines’ loans to the end of 2024 and reduce airport charges like landing fees. VABA wants the resumption of flights to places that have contained Covid-19 like Australia, India, China, South Korea, Japan, and Europe. It urged the Ministry of Transport to run programs to stimulate domestic tourism. Tran Bao Ngoc, head of the ministry’s transport department, agreed that the aviation industry needs support to come out of its slump, and promised to consider VABA’s demands and take up those outside its purview like rolling over loans with the government. Aviation was among the worst hit sectors in 2020. The number of air passengers declined by 43 percent to 66 million, while cargo transport was 15 percent down at 1.3 million tons. Landing and other ground services’ fees were reduced by 50 percent and those for some specialized aviation services were waived for six months from March to September. The environment protection tax on aviation fuel was reduced by 30 percent. The government also approved a bailout plan including refinancing and loan rollovers for Vietnam Airlines. …

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Vietnamese and Japanese firms receive support to expand operations The Japan Trade Promotion Organisation (JETRO) will host an online scheme on March 3 in Hanoi aimed at connecting Japanese businesses in the field of manufacturing and production, known as Monozukuri in Japanese term to facilitate co-operation amid the negative impacts caused the COVID-19 pandemic. According to a representative from the JETRO, the business matching programme will see the participation of 40 Japanese companies for the purpose of accelerating the development of the country’s supporting industry. At present, the scheme has received registration for 50 negotiations from enterprises from Japan, Vietnam, and Taiwan (China), whilst it is still receiving registration from businesses wishing to purchase and seek Japanese suppliers in the Monozukuri field until March 1. A recent survey conducted by the JETRO unveiled that Japanese businesses remain keen on the Vietnamese market as the country is viewed as an alternative investment destinations for Japanese enterprises looking to move away from China due to the COVID-19 pandemic. The survey indicates that approximately half of Japanese enterprises in the nation plan to expand their production activities, while roughly 70% of them seek opportunities to increase revenue in the local market. Most notably, 46.8% of Japanese enterprises unveiled that they have initiated plans to expand their business in the nation over the course of the next two years, with the expansion rate ranking fourth, the highest in the Asia-Pacific region. Japanese enterprises have therefore attributed their expansion to an increase in revenue in the domestic market and high growth potential. Furthermore, Japanese firms are also considering re-establishing some supply chains which have been impacted by the COVID-19 pandemic, with Vietnam able to capture the attention of suppliers and buyers of materials globally. VN-Index finishes lower as …

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A postponement of business-related tax would assist pendemic-stricken companies and the state budget. Photo: Le Tien The Ministry of Finance (MoF) has proposed that the government approves a decree on extending the payment of taxes and land fees in 2021 with particular measures for every tax, beneficiary, and business sector. The MoF suggested delaying VAT payments for five months, reducing the total state budget by VND68.8 trillion ($3 billion) during the period. For corporate income tax (CIT), the MoF proposed deferring for three months – consequently, around VND40.5 trillion ($1.76 billion) will be paid to the state budget later, while VAT made by household and individual businesses to be delayed is estimated at VND1.3 trillion ($56.5 million). Additionally, the MoF asked to put off land rentals for the first term of 2021 for corporations, organisations, and household and individual businesses, estimated at a total of around VND4.4 trillion ($191.3 million). Accordingly, total payments to be extended would be estimated at VND115 trillion ($5 billion). An MoF representative said that deferring taxes and land rental payments will be considered as non-interest loans the government provides for companies, household businesses, and individuals to overcome challenges caused by the global health crisis, and which will not affect the annual state budget. “Around 96 per cent of businesses in the country will be eligible for such assistance if it is approved,” said the representative. Vang Vien Thong, general director of Ho Chi Minh City-based Nam Anh Co., Ltd., a supplier of Japanese clothing giants, explained that the policy will greatly help businesses, especially ones enjoying huge incomes. “It is favourable for us if the VAT payment is delayed for five months. For a firm generating millions of US dollars in revenue annually like Nam Anh, this policy will be a good resource for us to maintain and develop the business,” said Thong. In another case, Tay …

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