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Small business in need of bailout
The Government should speed up support policies for local businesses to avoid further bankruptcies, a senior economist has warned.
“Small-and medium-sized enterprises (SMEs) are facing difficult times,” said Dr Cao Sy Kiem, chairman of the Vietnam SMEs Association and member of the National Monetary Policy Consulting Commission.
“If they don’t get support from the Government as early as possible, recovery opportunities will pass,” he added.
Kiem urged authorities to make public a list of enterprises eligible for corporate income tax reduction.
“The Ministry of Finance has guidelines on how to reduce and delay the tax for SMEs in some difficult fields. We need to have the name,” he added.
Under the policy, each enterprise would be able to save tens of millions of Vietnam dong.
But the former State Bank governor worried that even with the Government’s policies, effective implementation would be slow because of cumbersome administration.
Moreover, Kiem asked the Government to provide a financial guarantee system for foreign-related projects.
“Most local businesses are SMEs and they have restricted their funds to mortgages for big projects with foreign partners. Therefore, they need a guarantee to buy cheap materials and equipment,” he said.
Lower interest rates were another issue that could affect business growth.
“The business community can afford an interest rate of 4-5 percent per year. The rate should be readjusted every month based on the consumer price index,” Kiem said.
Still, he emphasised that SMEs must learn to be self-sufficient and focus on enhancing management ability, improving quality of human resources, expanding information systems and overcoming financial problems.
VNA
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