Prime Minister's opinion on proposal to allow businesses to retain union fees

The Private Economic Development Research Board under the Administrative Procedure Reform Advisory Council (Board IV) has just sent a report on the business situation to the Prime Minister.

Notably, the Government proposed that the Vietnam General Confederation of Labor allow businesses to keep union fee revenue (accounting for 2% of the salary fund paid to employees) for at least the next 2 years.

In the long term, the Vietnam General Confederation of Labor will study gradually reducing the contribution rate to the higher-level union instead of the current rate.

Considering the report, Prime Minister Pham Minh Chinh requested the Vietnam General Confederation of Labor to study and propose on the management and use of trade union funds to have appropriate solutions in accordance with regulations, and report to competent authorities for consideration and decision.

Previously, the Private Economic Development Research Board proposed that the Government could consider tax reduction, tax deferral and not increase social insurance contributions in the draft Law on Social Insurance. In the long term, tax policy needs to be consistent with the scale of revenue and industry of the enterprise.

This agency recommends that the Government should direct the development and implementation of policies to support cash flow for businesses through support for accessing and absorbing capital and extending, deferring, and reducing costs.

In addition to lowering lending rates, Board IV believes that it is necessary to review lending conditions. For example, commercial banks should evaluate future debt repayment capacity instead of just looking at collateral and some conditions when considering growth.

Next is to promote public investment, especially large projects, to support construction and building materials enterprises, while developing social housing and supporting real estate enterprises.

The committee also believes that it is necessary to consider extending and reducing taxes and other costs in parallel with creating short-term cash flow for businesses.

Small and Medium Enterprise Development Funds or credit guarantees in localities need to better play their role in supporting small and medium enterprises in accessing capital, while supporting the green transition process.

The Private Economic Development Research Board has a number of outstanding proposals.

That is the State Bank and the commercial banking system for construction and real estate enterprises with products in social infrastructure, industrial parks, offices, etc. to have their debts deferred or their debt groups held.

The Ministry of Finance has drastically implemented policies to extend tax payment periods, reduce VAT, and remove obstacles in VAT refunds...