Expectations from Vietnam's support packages

The Government issued Resolution No. 68/NQ-CP ("Resolution 68") on a number of policies to support employees and employers facing difficulties due to the COVID-19 pandemic, worth a total of VND26 trillion.

On Jul 1, 2021, the Government issued Resolution No. 68/NQ-CP ("Resolution 68") on a number of policies to support employees and employers facing difficulties due to the COVID-19 pandemic, worth a total of VND26 trillion. Soon after the issuance of Resolution 68, Decision No. 23/2021/QD-TTg was also released to provide detailed guidance on necessary steps to implement the policies in Resolution 68.

Specifically, this policy focuses on supporting workers directly affected by the fourth outbreak, such as in industrial parks and in enterprises that are temporarily closed or live in quarantine zones due to the fourth outbreak. The policy consists of three basic groups, including: direct support in cash for workers whose contracts or their jobs are suspended; support policies related to insurance and support policies for businesses to restore production.

On Jul 31, the Government issued Resolution No. 83/NQ-CP to agree on a plan to reduce electricity bills (phase 4) for electricity users affected by the fourth outbreak. Accordingly, the Government requested to reduce electricity bills in two months (Aug and Sep 2021) for customers using electricity in localities that are implementing social-distancing measures in accordance with Directive No. 16/CT-TTg. The total amount of reduction in phrase 4 estimated at VND2.5 trillion.

On Aug 1, the Government office issued a document on Deputy Prime Minister Le Minh Khai's instruction regarding the reduction of water supply and telecommunications fees for customers affected by the pandemic. Following this, the telecommunication providers, including Viettel, VNPT, Mobifone, CMC, FPT, Vietnamobile and SCTV, have agreed to offer support packages for telecommunications customers, totaling VND10 trillion.

In addition, the Ministry of Finance (MOF) is studying and proposing an additional tax and fee support package for businesses heavily affected by the COVID-19 pandemic, is estimated at VND21 trillion. Before that, the Government issued Decree 52/2021/ND-CP on extending the deadline of payment of VAT, CIT, personal income tax and land rent in 2021. The total amount expected to be postponed or delayed is estimated at VND115 trillion. Enterprises, business households and individuals strongly affected by the pandemic are subject to this policy. The deadline is extended from 3-6 months and taxpayers must fulfill their tax obligations no later than the end of 2021.

According to the Ministry of Planning and Investment, the size of all support packages is estimated at about USD10.5bn. These support policies will help businesses and employees overcome the current difficult period caused by the COVID-19 pandemic and create foundation for recovery after the fourth outbreak is totally contained. Besides, the reduction in prices and fees of essential services such as electricity, water and telecommunications will help curb inflation for the rest of 2021.