Many businesses have had to lay off workers because of the new epidemic

Avatar of Nick John By Nick John Dec1,2023 #businesses #Many
Many businesses have had to lay off workers because of the new epidemic 6
Many businesses have had to lay off workers because of the new epidemic 6

The third survey conducted by the Private Economic Development Research Board (Division IV) in mid-August, after the second epidemic broke out again, showed that business health was `more exhausted`.

Travel and accommodation tourism businesses continue to be the group most heavily affected.

`Covid-19 has caused widespread damage to industries, broken supply chains, market crisis… leaving businesses unable to pay and causing double pressure for them because they still have to ensure payments.

But the more serious consequence is that the wave of labor cuts has begun to take place on a large scale, when during the first epidemic, most businesses tried not to lay off workers.

The impact of the second epidemic caused more than 47% of businesses to cut labor.

Not only the tourism industry, cutting labor is `a common move of many businesses and sectors during the second outbreak`.

One of the hotels in Hanoi’s Old Quarter had to close due to the epidemic.

Most businesses and associations believe that their existence up to this point is `an extremely great effort, but the effort spent to retain employees, especially key personnel and managers… is still great.`

This situation also corresponds to the unemployment data recently announced by the General Statistics Office and is expected to cause major consequences for social issues when tens of millions of workers lose their jobs.

Unlike the two previous surveys, this survey has a noteworthy issue: there has been a decline in the confidence of many businesses in the issued policies.

Therefore, Committee IV proposed that the Government’s policy in the upcoming support package should aim to strengthen trust and create motivation for businesses, and the policy-making process must really set the goal of supporting businesses as a priority.

In addition, instead of supporting exhausted and broken businesses, we should aim for policies to help businesses reduce cash outflows so that they can balance and use very thin capital flows for minimum expenses, in order to

The Private Economic Development Research Board proposed that the Government reduce corporate income tax by 30% for all businesses in 2020 instead of only applying to businesses with total revenue of no more than 200 billion VND this year.

In addition, the Government will consider and submit to the National Assembly a minimum reduction of 50% of social insurance, health insurance, and unemployment insurance in 2020, even extending it to 2021. At the same time, delaying the payment time compared to

`Exemption from union dues in 2020 and 2021 instead of just postponing payment for a few months to strengthen business spirit. This policy, if issued, will be a great support measure for businesses to maintain capital flow and reduce time.

The business community also proposed that the Government submit to the National Assembly a 50% reduction in value-added tax and reduce costs for consumers to stabilize consumption demand after the epidemic.

With banks, businesses propose to expand unsecured loans;

Regarding electricity price support, tourism and logistics businesses asked the Government to extend the time to apply electricity production prices to this area instead of only applying for 5 months according to the support policy at the beginning of the year.

Businesses also proposed that the Government not increase the regional minimum wage at least until the end of 2021 to reduce pressure on businesses in paying salaries, insurance and other expenses based on salaries.

Finally, businesses and associations proposed that the Government balance the budget and adjust state budget revenue and expenditure targets.

`This approach makes the difficulties of businesses pile up, causing the economy to suffer many consequences that are difficult to overcome in the coming years,` a representative of Department IV stated in a report sent to the Prime Minister.

Detailed Report on results of the survey on the impact of Covid-19 on businesses

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