To remove difficulties for businesses, the Vietnam Steel Association proposes the Ministry of Finance to direct local tax authorities to extend tax payment time and budget revenues of steel enterprises to avoid putting more pressure on the business.

Illustration. Photo: Nguyen Thanh 

Fewer orders

According to the Vietnam Steel Association, since the beginning of the year, the steel market has generally been bleak with moderate production activities, very little sales transactions due to the work or project stopping or delaying implementation because of the pandemic.

Goods circulate slowly due to slow domestic demand. Transportation of materials and goods in Northeastern provinces (Hai Duong, Hai Phong, Hung Yen, Quang Ninh) is difficult when the pandemic broke out again in Hai Duong and Quang Ninh.

Notably, the preparation for pandemic prevention and logistics arrangement at factories, especially factories in the heart of affected areas such as HoaPhatKinh Mon Hai Duong, is expensive.

The representative of the Vietnam Steel Association cited evidence that, before the 2021 Lunar New Year holiday, the enterprise spent VND6 billion on testing, after the Lunar New Year it was VND10 billion for factories in this area when there was a suspect of being infected. Other factories similar to Viet Duc Steel have distributors in Hai Duong.

Regarding the impact of the additional support policy for businesses facing difficulties caused by Covid-19, the leader of the Vietnam Steel Association affirmed that he appreciated the State's support for businesses to ensure safe pandemic control and economic development.

"However, there are still inconsistent shortcomings, especially in the issue of goods circulation from provinces to other localities and vice versa," he said.

Besides steel, mechanics is also an industry that has been facing many difficulties due to Covid-19. Speaking at the meeting between the Minister of Planning and Investment Nguyen Chi Dung and businesses to assess the situation, propose additional support policies for businesses facing difficulties, Nguyen Chi Sang, Vice President and General Secretary of the Vietnam Mechanical Business Association (VAMI), said the biggest problem for businesses is the orders.

"Sales of automobile companies this year compared to last year decreased a lot. Mechanical manufacturing enterprises after a year of Covid-19, orders started to decrease, while freight costs increased," said Nguyen Chi Sang.

Looking for more supportive policies

To remove difficulties for businesses, the Vietnam Steel Association petitioned the State Bank and joint stock commercial banks to consider issuing credit support policies such as extending the time for debt to be due; at the same time, lowering interest rates helps steel businesses overcome this difficult period. At the same time, the association suggested the local tax authorities extend the tax payment time and budget revenues of steel enterprises.

Also related to the cost issue, the representative of VAMI asked the Government to support the business owner with the cost of isolation for foreign experts because this part is costly to the business; in addition, to create conditions for domestic enterprises to participate in domestic bidding projects.

From a specific business perspective, Le Ngoc Duc, General Director of Hyundai Thanh Cong proposed to continue supporting the reduction of registration fees for domestically produced cars until the end of 2021.

Duc analyzed, in the first said months of 2020, when Covid-19 started, the car market decreased by 35% compared to 2019. The Government has promptly issued a policy of 50% reduction in registration fees for domestically produced cars. Businesses also supported to reduce selling prices, so output grew in the last six months of the year. By the end of 2020, total market output will only decrease by 10%.