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Firms hurt by rioting in Vietnam get tax breaks

Publication Date : 28-05-2014

 

Vietnam Deputy Prime Minister Vu Van Ninh has urged HCM City to learn from the recent rioting incident and review relations between employees and employers.

Ninh said this was necessary to stabilise the operations of foreign and domestic businesses.

In a meeting with the city's People's Committee yesterday, he said the city should also map out measures, including tax and land rental breaks, to help enterprises affected.

Ninh praised the measures taken by authorities to deal with the rioting during protests against China's placement of an oil rig in Vietnam's territorial waters in early May.

He also praised efforts to prevent extremists from damaging enterprises, especially foreign-invested businesses and told city authorities not to allow the situation to be repeated.

Ninh added that labourers should be instructed about proper behaviour.

According to a report from the Municipal People's Committee, 32 enterprises in industrial parks and three others outside were hit by the disturbances. Total damage has been estimated at 3.9 billion dong (US$185,700).

City authorities implemented immediate measures to settle the matter. As a result, by May 17, most affected enterprises resumed normal operations.

However, enterprises said they were committed to pay workers even for days they were absent due to disorder.

Meanwhile, Prime Minister Nguyen Tan Dung has urged concerned ministries and agencies to offer more support to businesses harmed by recent social disorders to help them resume normal operations.

He asked the finance ministry to direct customs agencies to provide import tax exemption for businesses affected and not to collect value-added tax for imported goods to help them repair and buy new equipment.

In support of workers, the PM urged businesses to pay wages for those workers who had to stop working during the period. The expense used to pay for them would be deducted from business tax later.

The PM urged People's Committees to temporarily use their provincial budgets to pay workers if companies involved could not immediately do so.

He said that when business owners returned from overseas, they would be asked to refund the money. The expense would also be later deducted from tax.

The PM asked ministries and agencies to propose measures to help any business that could not immediately resume operations.

He also urged provincial People's Committees to reduce land rentals for businesses that had suffered damage.

Businesses that have stopped operations to re-invest in trade and production facilities will have land rental payments refunded and be exempt from land rental fees for 2014.


 

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