DIRECTIVE

URGENT OBJECTIVES AND SOLUTIONS FOR ASSISTING BUSINESSES FACING DIFFICULTIES AND ASSURANCE OF SOCIAL WELFARE AMID COVID-19 PANDEMIC

Thanks to drastic measures taken by the entire political system, the effort and resolution of the Communist Party, the army and the people, the effort to prevent and control the outbreak of novel coronavirus disease (COVID-19) has initially had positive results. The Secretariat of Communist Party, the Government and the Prime Minister has declared a “war” against Covid-19 (“chống dịch như chống giặc”) and given directives on synchronous implementation of various measures to control the epidemic, treat patients, and prevent widespread transmission of the disease. These efforts have been highly acclaimed by the people and international community.

However, the Covid-19 is spreading widely and posing the risk of breaking out in numerous countries and regions in the world. This greatly affects global economy and many major partners of Vietnam. In Vietnam, Covid-19 has been affecting many socio-economic aspects. Export, import, travel, transport of goods and passengers, services such as healthcare, education, food and drink, hospitality, entertainment and especially tourism are significantly affected. Some industries have been slightly affected by temporary labor shortage; disruption in supply chain of raw materials has caused stagnation to production and business. Numerous enterprises, especially small and medium enterprises and enterprises in affected areas have to scale down or suspend operation.

With a large number of Vietnamese people repatriating, foreign tourists entering Vietnam from affected areas and other countries with unknown epidemic situation, implementation of epidemic prevention and control measures shall be maintained. Enforce quarantine to prevent widespread transmission. Find specific and effective solutions for assisting businesses facing difficulties; ensure social security in an effort to achieve socio-economic development objectives.

In order to effectively prevent, control and minimize the effect of Covid-19 pandemic, assist businesses facing difficulties, achieve socio-economic development objectives, ensure social security, social order, and health of the people, the Prime Minister hereby requests that Ministers, Heads of ministerial agencies and Governmental agencies, President of the People’s Committees of provinces, Chairpersons of the Boards of members and General Directors of state-owned corporations (hereinafter referred to as central and local authorities), enterprises and people nationwide to follow implement directives:

I. VIEWPOINTS

1. In furtherance of Official Dispatch No. 79-CV/TW of the Secretariat of Communist Party, Directive No. 05/CT-TTg dated January 28, 2020, Directive No. 06/CT-TTg dated January 31, 2020, Directive No. 10/CT-TTg dated February 25, 2020, and telegrams of the Prime Minister; implement the epidemic management measures in directives of the Government, the Prime Minister, National and local Steering Committees for prevention and control of Covid-10.

2. Epidemic prevention and control shall be associated with socio-economic development. Many countries are facing widespread transmission of Covid-19, thus neglect and irresponsibility are not acceptable; be prepared for every situation. Provide assistance for people and enterprises affected by the pandemic, helping them resolve business difficulties and ensuring social security; put the best effort in achieving 2020’s socio-economic development objectives set out by the Communist Party, the National Assembly and the Government.

3. Focus on analyzing and assessing the limitations of the economy, each industry, field and sector to accelerate the process of restructuring, reorganization and rearrangement, and to recover production and business activities, minimize and make up for the losses caused by Covid-19 pandemic, aim at building an independent, sustainable development economy that can adapt to external and internal fluctuations, especially non-traditional security challenges, climate change, natural disasters and epidemics. Be prepared for opportunities; attract external resources and investments from various countries and regions in development of the country.

II. SPECIFIC OBJECTIVES AND SOLUTIONS

1. Access to capital, credit, finance, tax, trade, electronic payment

a) The State bank of Vietnam shall:

- Promptly provide instructions for credit institutions on balancing and providing adequate capital for businesses; simplify formalities, reduce the time needed to process loan applications; improve accessibility of capital; promptly provide assistance such as debt restructuring, reduction or exemption of loan interest, retention of loan category, fee reduction, etc. for borrowers facing difficulties caused by Covid-19 pandemic (first from the emergency assistance package of about 250.000 billion VND).  

- Take charge and cooperate with the Ministry of Planning and Investment, the Ministry of Finance and relevant authorities in proposing suitable credit policies to resolve difficulties caused by Covid-19 pandemic, submit a report to the Prime Minister in March 2019.

- Keep promoting cashless payment; reduce or cut cashless payment service charges, especially online payment for public administrative services.

- Propose pilot application of mobile payment to the Prime Minister for decision.

b) The Ministry of Finance shall:

- Draft a Decree on deferral of tax and land rent for entities affected by Covid-19 pandemic, submit it to the Government and the Prime Minister in March 2020.

- Propose reduction and exemption of fees and charges to the Government to assist entities affected by Covid-19.

- Propose to competent authorities solutions regarding tax and state budget spending, first of all the package of approximately 30.000 billion VND, to resolve business difficulties, ensure social security amid Covid-19 pandemic; submit them to the Prime Minister in March 2020.

c) The Ministry of Information and Communications shall come up with solutions for enabling digital technology enterprises to develop electronic commerce products, delivery services, financial technology (FinTech), electronic payment, etc. in cyberspace; request authorities, enterprises and people to apply them to life and business.

d) Social Security Administration of Vietnam shall take charge and cooperate with relevant authorities in providing guidance on delaying collection of social insurance from entities affected by Covid-19 until the end of June or December 2020 without charging late payment interest.

dd) Vietnam General Confederation of Labor shall consider adjusting deadlines for payment of union contributions to assist enterprises and organizations affected by Covid-19.

2. Reviewing, cutting administrative procedures and costs for enterprises

a) The Ministry of Transport shall take charge and cooperate with relevant authorities in providing guidance on simplification of administrative procedures and reduction of logistics costs in maritime, air, road, inland waterways and rail transport; submit a report to the Prime Minister in March 2020.

b) The Ministry of Finance shall:

- Request tax authorities and customs authorities to consider exemption of periodic inspection in 2020 at enterprises that are not suspected of violations in order for them to overcome difficulties and sustain business operation; do not let enterprise take advantage of this policy to commit violations of law.

- Draft a Resolution on increasing personal income tax deductions and submit it to the Government in March 2020 for proposal to Standing Committee of the National Assembly. This is meant to reduce tax burden on the people.

- Prepare the documentation for the draft Resolution of the National Assembly on corporate income tax and assistance for small and medium enterprises; submit them to the Government in March 2020.

c) Government Inspectorate, Inspectorates of ministries and local governments shall strictly implement the Prime Minister’s Directive No. 20/CT-TTg dated May 17, 2017; do not carry out unplanned inspection except for special tasks that have been specifically assigned.

State Audit Office of Vietnam and competent authorities shall facilitate operation of local governments, enterprises and the people facing difficulties.

d) Ministries and local governments shall:

- Within the scope of their management, decide reduction of fees and charges payable by affected entities, or submit proposals thereof to the Ministry of Finance before March 15, 2002.

- Do not increase state-fixed prices for input materials in Q1 and Q2/2020.

- Focus on restructuring of administrative procedures at level 3 and 4 integrated with the National Public Service Portal towards cost reduction and facilitation of service provision for the people and enterprises.

3. Facilitation of production and business; export and import production

a) The Ministry of Industry and Trade shall:

- Take charge and cooperate with the Ministry of Agriculture and Rural Development, the Ministry of Construction and relevant authorities in reviewing and reporting the stock and demand for raw materials; propose solutions for diversifying and ensuring sources of supply for domestic production; forecast domestic and international demand; have measures for adequate supply of raw materials for production; plan production, distribution, circulation and adequate supply of goods; fortify domestic market and assist retailers facing difficulties; submit a report to the Prime Minister in March 2020.

- Implement measures for increasing export and improve effectiveness of trade promotion; diversity the export and import markets; find new markets; take advantage of opportunities provided by Free Trade Agreements; be prepared and implement plans for export of goods to EU after EVFTA comes into effect in the middle of 2020; submit a report to the Prime Minister in March 2020.

- Enhance inspection and take actions against smuggling, trade fraud, speculation that causes shortage or artificial shortage of goods, counterfeits in the market, especially of essential goods for epidemic control such as facemasks, hand sanitizers, medical supplies.  

- Take charge and cooperate with the Ministry of Finance and relevant units in granting customs clearance, resolving difficulties in export and import; cooperate with and assist bordering provinces in granting customs clearance.

- Cooperate with local governments in development of production areas, industrial parks and economic zones to ensure adequate domestic supply of raw materials; propose suitable incentives, first of all for the textiles and garments, leather and footwear industries and other industries affected by Covid-19 pandemic; encourage domestic production of components and intermediary products to replace imports.

b) The Ministry of Agriculture and Rural Development shall take charge and cooperate with the Ministry of Industry and Trade and relevant authorities in giving guidance on boosting production and processing of agricultural, forestry, and aquaculture products; implement specific measures to reduce pork prices; propose solutions to improve tracing of origins of agriculture products to boost official export to China and other countries; find opportunities to change the method of selling and exporting key agricultural, forestry, and aquaculture products; submit a report to the Prime Minister before March 20, 2020.

c) The Ministry of Finance shall request tax authorities and customs authorities to simplify administrative procedures for customs clearance, tax refund, tax deferral, etc. for entities affected by Covid-19 pandemic; take actions against abuse of epidemic control policies to harass enterprises during customs clearance, export and import of goods; Submit a report to the Prime Minister in March 2020.

d) Chairpersons of Boards of members, General Directors of state-owned corporations shall implement their own measures to overcome difficulties, encourage innovation, put the best effort in achievement of their 2020’s business plans, contribute to development of relevant industries and achievement of socio-economic development. Commission for Management of State Capital at Enterprises, relevant ministries shall provide guidance, supervise and facilitate the implementation of 2020’s business plans of state-owned corporations.

4. Recovery and development of tourism and air transport

a) The Ministry of Culture, Sports and Tourism shall run national tourism promotion programs; cooperate with tourism associations in promoting domestic tours; develop and advertise new products to attract international tourists, especially from unaffected areas; focus on development of domestic tourism nationwide.

b) The Ministry of Foreign Affairs shall take charge and cooperate with the Ministry of Culture, Sports and Tourism, the Ministry of Public Security, the Ministry of Finance and relevant authorities in relaxing certain requirements and improving procedures for grant of e-visa; propose visa-free entry for tourists in All-inclusive Tourism Program until the end of 2020, first of all from unaffected countries and regions; submit a report to the Prime Minister in March 2020.

c) The Ministry of Transport shall take charge and cooperate with relevant ministries in resolving difficulties in the aviation industry; ensure reduction of aviation fees and charges are conformable with law; cooperate with the Ministry of Culture, Sports and Tourism in speeding up deployment of direct aviation connection to key markets.

d) The Ministry of Finance shall take charge and cooperate with minutes of meeting in launching the Tourism Development Assistance Fund.

dd) The Ministry of Information and Communications shall take charge and cooperate with the Ministry of Culture, Sports and Tourism, other ministries, local governments and press agencies in communicating advertising Vietnam as a safe and friendly place for tourists, where the effort to control Covid-19 infection is highly praised by the international community.

5. Speeding up progress, disbursement of capital and improvement of business conditions

a) Ministries, central and local authorities shall complete procedures for investment, complete the 2020’s plan for disbursement of state capital in March 2020; speed up the disbursement of remaining capital of 2019 and 2020 (including ODA); focus on completing and putting into operation the major and important infrastructural works; make the best use of their design capacity to ensure socio-economic efficiency. Ministries, local governments, state-owned corporations shall frequently carry out inspection and implement appropriate measures to ensure construction progress and quality.

b) the Ministry of Planning and Investment shall:

- Take charge and cooperate with the Ministry of Finance and relevant authorities in organizing the Government’s online national conference on disbursement of public capital in March 2020, specifying responsibility of each organization and individual, especially the persons in charge of the disbursement plan.

- Frequently carry out inspection and assessment of implementation of the 2020’s public investment plan; promptly give instructions on resolving difficulties to speed up the process of disbursement; ensure that remaining capital of 2019 and 2020 is fully disbursed; any delay shall be dealt with.

- Take charge and cooperate with other Ministries, central and local authorities in proposing to the Government a program for removal or conditions and procedures that obstruct business operation during 2021-2025, implement appropriate solutions for improving business environment, attracting domestic and overseas investment to seize the opportunities for development, especially the flow of capital from other countries.

c) The Ministry of Transport shall:

- Take charge and cooperate with the Ministry of Planning and Investment, the Ministry of Finance and relevant authorities in studying and proposing to competent authority conversion of Public-Private Partnerships (PPP) to public investment in key projects, such as My Thuan – Can Tho Freeway, component projects of the project for construction of certain segments of the North – South Road in the eastern region during 2017 - 2020; consider investor designation and direct contracting in conformity with law to speed up progress of the projects; submit a report to the Government before March 15, 2020.

- Speed up the disbursement of capital for and execution of large scale and important projects that can boost socio-economic development such as the project for expansion of Tan Son Nhat Airport, Noi Bai Airport, construction of Long Thanh Airport, North – South Road in the eastern region during 2017 – 2020; delay will no longer be acceptable.

d) The Ministry of Industry and Trade shall focus on completion of large scale industrial projects to boost growth, including Thai Binh 2 Thermal Power Plant, Long Phu I Thermal Power Plant, Song Hau I Thermal Power Plan, gas power projects, renewable energy projects, power transmission systems; speed up the development of the national master plan for power development 2021 – 2030 with a vision towards 2045; resolve or request competent authorities to resolve difficulties encountered during the implementation; make sure there is no shortage of power for production and domestic use during 2021 - 2025.

dd) Ministries and local authorities shall keep simplifying administrative procedures and business conditions; resolve difficulties and facilitate business operation, especially in terms of land use, investment, construction, credit, tax, customs, etc.; have a plan to improve business environment and competitiveness in furtherance of the Government's Resolution No. 02/NQ-CP dated January 01, 2020; make the administrative procedures publicly known among the people and enterprises.

6. Resolving labor-related difficulties

The Ministry of Labor, War Invalids and Social Affairs shall take charge and cooperate with other authorities and local governments in resolving the following labor-related issues and submit a report to the Prime Minister in March 2020:

- Labor and employments in enterprises; measures for diversification of communication methods; solutions for encouraging employees; plans for assistance in training employees and assistance for people who lose their jobs because of Covid-19 pandemic.

- The situation and solutions for management of foreign workers in Vietnam in each administrative division, especially those who come from or through affected areas; assist enterprises in finding replacements in case of shortage of foreign specialists or workers.

7. Promotion of communication

The Ministry of Information and Communications shall cooperate with Central Propaganda Department, other Ministries and local governments in:

- Requesting press agencies to publish official, transparent and objective information about the effort to prevent and control Covid-19 in Vietnam; disseminate the solutions of the Government, Ministries, regulatory bodies, and local governments for epidemic control, resolving difficulties, boosting business, ensuring social security, health and life of the people.

- Disseminate the messages that Vietnam is a safe destination and will welcome tourists and investors all over the world.

III. IMPLEMENTATION

1. Ministries, central and authorities shall have their own action plans; request the agencies, units, officials and employees under their management to perform the objectives in this Directive; instruct and encourage the people and enterprises to implement the solutions for resolving business difficulties and ensuring social security amid Covid-19 pandemic as specified in this Directive; do not harass the people and enterprises; cooperate with relevant Ministries and authorities in resolving new difficulties; submit monthly reports on implementation and proposal of new solutions to the Ministry of Planning and Investment and Office of the Government before the 20^th of each month.

Ministers, Heads of ministerial agencies, Governmental agencies, Presidents of the People’s Committees of provinces, Chairpersons of Boards of members and General Directors of state-owned corporations are responsible to the Government and the Prime Minister for the implementation of this Directive.

2. Central Committee of Vietnamese Fatherland Front, Vietnam Chamber of Commerce and Industry, Association of Small and Medium Enterprises, professional associations, social organizations in all economic sectors and classes shall put their best effort to overcome the difficulties, work hard, and fulfill the objectives of 2020.

3. The Ministry of Planning and Investment shall take charge and cooperate with other Ministries, regulatory bodies, and local governments in supervising and reporting the implementation of the objectives and solutions specified in this Directive; submit a report to the Government during its monthly meeting; promptly report new issues to the Prime Minister.

The Ministry of Planning and Investment, other Ministries, regulatory bodies and local governments shall closely monitor the socio-economic situation; review and assess the impacts of the disease on every industry, propose appropriate and timely solutions to the Government and the Prime Minister.