On September 18, VCCI submitted a proposal to the Prime Minister for policies to support businesses in restoring production and operations after the typhoon.

In its report to the Prime Minister, VCCI assessed that the damage to the assets and business operations of many companies is extremely severe, estimated in the thousands of billions of VND. Significant assets, including factories, ships, vehicles, machinery, equipment, and goods, have been damaged. This information has been compiled from businesses and business associations.

The extent of damage to the assets and business operations of many companies is severe, estimated at thousands of billions of VND, according to VCCI.

Most other businesses in northern provinces are facing indirect impacts, such as having to close, halt production, or reduce productivity and sales during the floods, as workers are unable to go to work, goods cannot be transported, or they cannot reach customers.

"The recovery of production and business for many companies is currently facing significant difficulties, severely affecting economic growth and the livelihoods of many people and workers. This is a critical time for appropriate economic policies to help businesses in northern provinces quickly rebuild and restore production, contributing to the long-term mitigation of damages from the typhoon and ensuring livelihoods for the people," VCCI recommended to the Prime Minister.

Waiving Water Surface Rental Fees for Aquaculture Facilities Until the End of 2025

Specifically, VCCI has submitted 15 groups of support policies to help businesses in northern provinces quickly rebuild and restore production after the floods, divided into two groups.

Group 1 is aimed at the sectors, fields, and localities most severely affected by Typhoon Yagi, including fishing vessels, tourism boats, and aquaculture cages in the sea, rivers, streams, and ponds.

Proposed solutions include support based on actual damage, as assessed by local authorities and ship owners. Recommendations for support include waiving water surface rental fees, as well as various fees and charges, and proposals to exempt or reduce certain taxes.

Consider Reducing Value-Added Tax and Extending Tax Payment Deadlines

VCCI has proposed including businesses in the group eligible for agricultural production support policies aimed at restoring production in areas affected by natural disasters and epidemics. This proposal is suggested to apply to other sectors and fields in localities impacted by the floods.

For this group of policies, VCCI recommends that the Prime Minister consider reducing the value-added tax (VAT) on gasoline and oil from 10% to 8% from September to December 2024 for retail gasoline and oil facilities in flood-affected areas, especially in the mountainous northern provinces.

For electricity consumers in flood-affected areas, VCCI suggests considering a reduction of VAT on electricity from 8% to 6%.

VCCI also recommends extending the deadlines for paying VAT, corporate income tax, and land rent for businesses in flood-affected areas into 2025, as well as deferring social insurance payment deadlines by 4 to 6 months for businesses impacted by the floods.

Furthermore, VCCI continues to propose a 50% reduction in union fees submitted to the higher-level unions for businesses in provinces affected by the floods until the end of December 2024, with deferred payment deadlines extended to 2025.

Additionally, VCCI requests the continuation of policies to restructure loan repayment terms and maintain the debt classification as outlined in Circular 02/2023/TT-NHNN and Circular 06/2024/TT-NHNN for debt obligations from now until June 2025 for loans taken by businesses in areas affected by Typhoon Yagi.

Moreover, VCCI urges the Prime Minister to direct the disbursement of the Disaster Prevention Fund for relief efforts and recovery from the impacts of Typhoon Yagi. This fund is contributed by businesses and workers, but as of 2023, it still has a surplus of nearly 2 trillion VND.

Policy Proposals to Support Sectors, Fields, and Localities Most Severely Affected by Typhoon Yagi, Including Fishing Vessels, Tourism Boats, and Aquaculture Cages in the Sea, Rivers, Streams, and Ponds:

• Support for Actual Damages: Provide compensation for actual damages to aquaculture cages according to Decree 02/2017/ND-CP, with a recommendation to increase the support amount and extend it to aquaculture businesses.

• Support for Actual Damages to Fishing and Tourism Vessels: Support measures based on established norms, with local authorities and ship owners assessing damages.

• Waiving Water Surface Rental Fees: Waive water surface rental fees for aquaculture facilities until the end of 2025.

• Waiving Related Fees and Charges: Waive fees related to port entry and exit, inland waterway ports, and mooring fees for a period of 6 months to 1 year.

• State Support for Insurance Costs: The state should cover 50% to 70% of the insurance costs for fishing and tourism vessels until the end of 2025.

• Consideration of VAT and Corporate Income Tax Reductions: Consider waiving or reducing 50% of value-added tax, corporate income tax, and personal income tax for these sectors for a period of 4 to 6 months.

• Consideration of Social Insurance Payment Reductions: Consider reducing social insurance contributions for a period of 4 to 6 months.

• Consideration of Union Fee Exemptions: Consider waiving the portion of union fees paid to higher-level unions for a period of 4 to 6 months.