Vietnam’s Support Policy to Recover Economy: Resolution 84
As Vietnam comes out of lockdown and attempts to recover its economy, the government on May 29 issued Resolution 84/NQ-CP (Resolution 84) unveiling a number of incentives for businesses affected by the pandemic.
The Resolution includes the reduction of certain fees, as well as the easing of various regulations related to trade, industries, and foreign employees.
Reduction of fees
To help businesses affected by COVID-19, the government will temporarily reduce or suspend some fees and charges. We highlight the major points of Resolution 84 below.
Land rentals
A 15 percent reduction of rent for this year for land plots leased directly from the government. These will be applicable to renters making annual rent payments and those who were forced to suspend operations due to the pandemic.
Automobile industry
The government will reduce vehicle registration fees by 50 percent until the end of 2020 for vehicles manufactured or assembled in Vietnam.
Small and medium enterprises (SMEs) loans
A 2 percent reduction of interest rates on loans distributed to eligible SMEs from the Small and Medium Enterprise Development Fund. The SME development fund was created in July 2019 by the government to support SMEs in lending and financing. Eligible SMEs can borrow directly from the fund at preferential interest rates.
Tax
Donations to address the COVID-19 pandemic will be deductible for corporate income tax purposes.
Water resources
Fee exemption for the right to exploit water resources in 2020 for companies exploiting water resources for manufacturing and business activities.
Work permits and foreign staff
The government has asked the Ministry of Labor, Invalids and Social Affairs (MOLISA) to allow foreign experts, company managers, investors, and high-tech workers to be allowed to enter Vietnam while ensuring compliance with preventatives measures against the pandemic. Therefore, foreign travelers are still subject to the mandatory 14-day quarantine and monitoring by health authorities.
MOLISA has stated that work permits will be renewed for foreign experts, managers, and high skilled workers while new work permits will be issued to replace those that are not able to enter Vietnam.
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This article is produced by Vietnam Briefing, a premium source of information for investors looking to set up and conduct business in Vietnam. The site is a publishing arm of Dezan Shira & Associates, a leading foreign investment consultancy in Asia with over 27 years of experience assisting businesses with market entry, site selection, legal, tax, accounting, HR and payroll services throughout the region.
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