The supporting package will promote enterprises to maintain and develop production Mr. Mai Huu Tin: In my opinion, we should not consider this as a rescue package but a supporting amount only for in 2009 the government had implemented rescue package of VND 150,000 billion to “save” enterprises from being collapsed while this year’s situation is much more different. The humble amount of VND 29,000 billion is meaningful to enterprises on the verge of dissolution.Reporter: In your view, what this package can be used to support enterprises?Mr. Mai Huu Tin: This VND 29,000 billion package is to support VAT payments in the second quarter with extra expansion of 6 months and 30% deduction of enterprise income tax in 2012 if the National Assembly approves to do so. Besides, the government proposes to reduce land-use rents by 50% for enterprises operating in the locality. Business households are also supported with tax reduction. Thus, the government is proposing to expand VAT payments – a humble but precious notion for enterprises.Reporter: The government also proposes 5 groups of measures in the package. In your opinion, is the package large enough to save enterprises in current situation?Mr. Mai Huu Tin: It is hard to say what is enough because we have no data for calculation. In my opinion, the way of calculation conducted by Central Economic Research Committee will put that total demands will only increase by 0.8% thanks to such measures. A precious number but a humble one.Reporter: What do you think about rumours that the State’s expansio of tax payments is actually making enterprises repay which is useless to enterprises?Mr. Mai Huu Tin: I could not agree with such view because every effort now is worthy. In fact, when the demands increase, enterprises could sell out great amount of stocked goods and maintain production and employment.Reporter: The major problems of enterprises are interest rate and production output; however, the measures proposed seem to ignore them. In your view, how should the ceiling interest rate be reduced to save the enterprises and what additional simulation packages should be?Mr. Mai Huu Tin: When the demands increase, inventories of enterprises will be released. And, the mentioned government’s measures have touch upon such increments. Meanwhile, interest rate is only reduced once inflation is decreased. If the expected inflation rate is less than 10%, the interest rate cluld be about 12% by year’s end; however, enterprises need the rate to be below 12% a year to maintain their operation. As for more measures to come, I do not recommend the Sate to offer more policies to enterprises without mortgage but to enterprises with good business strategic standing as a measure to stimulate the demands. Besides, a national fund for loans to employees renting houses will be one of the good measure.Reporter: Thank you!Interviewed by Thanh Son – Translated by Vi Bao
29,000 billion dong meaningful to enterprises
Dr. Mai Huu Tin, Binh Duong Provincial NA delegate of the 13th tenure, President of Vietnam Young Entrepreneurs, President of U&I Joint Stock Company commented on enterprise supporting package just approved by National Assembly. To him, the mere amount of 29,000 billion dong was meaningful to enterprise in the face of hardship.Reporter: What is your opinion regarding the so-called rescue package of VND 29,000 just approved by the government and considerted by National Assembly? The supporting package will promote enterprises to maintain and develop production Mr. Mai Huu Tin: In my opinion, we should not consider this as a rescue package but a supporting amount only for in 2009 the government had implemented rescue package of VND 150,000 billion to “save” enterprises from being collapsed while this year’s situation is much more different. The humble amount of VND 29,000 billion is meaningful to enterprises on the verge of dissolution.Reporter: In your view, what this package can be used to support enterprises?Mr. Mai Huu Tin: This VND 29,000 billion package is to support VAT payments in the second quarter with extra expansion of 6 months and 30% deduction of enterprise income tax in 2012 if the National Assembly approves to do so. Besides, the government proposes to reduce land-use rents by 50% for enterprises operating in the locality. Business households are also supported with tax reduction. Thus, the government is proposing to expand VAT payments – a humble but precious notion for enterprises.Reporter: The government also proposes 5 groups of measures in the package. In your opinion, is the package large enough to save enterprises in current situation?Mr. Mai Huu Tin: It is hard to say what is enough because we have no data for calculation. In my opinion, the way of calculation conducted by Central Economic Research Committee will put that total demands will only increase by 0.8% thanks to such measures. A precious number but a humble one.Reporter: What do you think about rumours that the State’s expansio of tax payments is actually making enterprises repay which is useless to enterprises?Mr. Mai Huu Tin: I could not agree with such view because every effort now is worthy. In fact, when the demands increase, enterprises could sell out great amount of stocked goods and maintain production and employment.Reporter: The major problems of enterprises are interest rate and production output; however, the measures proposed seem to ignore them. In your view, how should the ceiling interest rate be reduced to save the enterprises and what additional simulation packages should be?Mr. Mai Huu Tin: When the demands increase, inventories of enterprises will be released. And, the mentioned government’s measures have touch upon such increments. Meanwhile, interest rate is only reduced once inflation is decreased. If the expected inflation rate is less than 10%, the interest rate cluld be about 12% by year’s end; however, enterprises need the rate to be below 12% a year to maintain their operation. As for more measures to come, I do not recommend the Sate to offer more policies to enterprises without mortgage but to enterprises with good business strategic standing as a measure to stimulate the demands. Besides, a national fund for loans to employees renting houses will be one of the good measure.Reporter: Thank you!Interviewed by Thanh Son – Translated by Vi Bao
The supporting package will promote enterprises to maintain and develop production Mr. Mai Huu Tin: In my opinion, we should not consider this as a rescue package but a supporting amount only for in 2009 the government had implemented rescue package of VND 150,000 billion to “save” enterprises from being collapsed while this year’s situation is much more different. The humble amount of VND 29,000 billion is meaningful to enterprises on the verge of dissolution.Reporter: In your view, what this package can be used to support enterprises?Mr. Mai Huu Tin: This VND 29,000 billion package is to support VAT payments in the second quarter with extra expansion of 6 months and 30% deduction of enterprise income tax in 2012 if the National Assembly approves to do so. Besides, the government proposes to reduce land-use rents by 50% for enterprises operating in the locality. Business households are also supported with tax reduction. Thus, the government is proposing to expand VAT payments – a humble but precious notion for enterprises.Reporter: The government also proposes 5 groups of measures in the package. In your opinion, is the package large enough to save enterprises in current situation?Mr. Mai Huu Tin: It is hard to say what is enough because we have no data for calculation. In my opinion, the way of calculation conducted by Central Economic Research Committee will put that total demands will only increase by 0.8% thanks to such measures. A precious number but a humble one.Reporter: What do you think about rumours that the State’s expansio of tax payments is actually making enterprises repay which is useless to enterprises?Mr. Mai Huu Tin: I could not agree with such view because every effort now is worthy. In fact, when the demands increase, enterprises could sell out great amount of stocked goods and maintain production and employment.Reporter: The major problems of enterprises are interest rate and production output; however, the measures proposed seem to ignore them. In your view, how should the ceiling interest rate be reduced to save the enterprises and what additional simulation packages should be?Mr. Mai Huu Tin: When the demands increase, inventories of enterprises will be released. And, the mentioned government’s measures have touch upon such increments. Meanwhile, interest rate is only reduced once inflation is decreased. If the expected inflation rate is less than 10%, the interest rate cluld be about 12% by year’s end; however, enterprises need the rate to be below 12% a year to maintain their operation. As for more measures to come, I do not recommend the Sate to offer more policies to enterprises without mortgage but to enterprises with good business strategic standing as a measure to stimulate the demands. Besides, a national fund for loans to employees renting houses will be one of the good measure.Reporter: Thank you!Interviewed by Thanh Son – Translated by Vi Bao
