Based on the recommendations of the Vietnam Association of Seafood Exporters and Producers ("VASEP"), on July 12, 2023, the Prime Minister issued Official Letter No. 639/TTg-KTTH ("Official Letter 639"), providing some instructions for central ministries and agencies with the expectation of addressing challenges faced by forestry and aquatic product manufacturing and processing enterprises ("Forestry and Aquatic Enterprises") in the upcoming period, as follows:
1. Implementing a preferential credit program
According to Official Letter 639, the Prime Minister requested the State Bank of Vietnam ("SBV") to consider adjusting lending interest rates, providing credit, restructuring debts, and continuing researching and proposing a credit package of VND 10 trillion to support Forestry and Aquatic Enterprises.
In line with this directive, on July 14, 2023, SBV issued document No. 5631/NHNN-TD on the implementation of the credit program for the forestry and aquatic sectors, requesting banks to reduce lending interest rates in Vietnamese dong by a minimum of 1-2% per year compared to the average lending interest rate for the same term applied by each bank during each period. This credit program will last until June 30, 2024. Additionally, SBV will increase the total value of the credit package from VND 10 trillion to about VND 15 trillion to meet the demands of Forestry and Aquatic Enterprises.
Furthermore, the Prime Minister requires continuing to allow Forestry and Aquatic Enterprises to borrow from social policy banks to pay salaries to furloughed workers.
2. Extending and expanding tax incentives
a. Considering extending tax exemptions, reductions, and extensions for tax payment, land rent, and exemptions, reductions of various fees until the end of 2023.
b. Considering expanding the scope of applying the 2% VAT reduction rate to all goods and services subject to the 10% VAT rate as prescribed (As stipulated in the current Decree No. 44/2023/ND-CP, there are some groups of goods and services subject to a 10% VAT rate but not eligible for the tax reduction. This information has been updated by the ATA here).
3. Reducing insurance contributions and extending the deadline for payment
a. Reducing the unemployment insurance fund contribution rate from 1% to 0.5% until the end of 2023.
b. Temporarily suspending contributions to work-related accidents and occupational diseases insurance until the end of 2023.
c. Allowing enterprises to delay the payment of social insurance contributions for 3-6 months.
d. Reducing trade union fees.
Furthermore, the Prime Minister also requested relevant central ministries and agencies to streamline procedures, documentation, create favorable conditions, and reduce costs to ease difficulties for Forestry and Aquatic Enterprises.
All directives in Official Letter 639 must be considered, addressed, and the results reported before July 25, 2023.
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