On 09 September 2021, the Government issued Resolution 105/NQ-CP (“Resolution 105”) on supporting the enterprises, cooperatives, and business households in the context of the COVID-19 epidemic.
The objectives of this Resolution are to focus on restarting and developing the production and business activities of enterprises, cooperatives and business households in parallel with ensuring the safety in the prevention and control of COVID-19; promptly support and resolve difficulties, obstacles and bottlenecks hindering production and business activities, reduce the number of enterprises, cooperatives, and business households that have temporarily suspended their operations, or entered into dissolution or bankruptcy caused by the impact of COVID-19 pandemic. By the end of 2021, the government’s goals are:
(i) help at least 01 million borrowers, being enterprises, cooperatives and business households to receive credit support;
(ii) assist the vast majority of enterprises, cooperatives and households which have temporarily suspended their business to re-operate; and
(iii) fully and promptly implement policies on extension, exemption and reduction of taxes, statutory fees, land rental fee, electricity, water, telecommunications charges, along with policies to support employees, employers, and labour training, etc. for enterprises, cooperatives and households facing difficulties due to the impact of the COVID-19 pandemic.
Resolution 105 takes effect from 09 September 2021.
The following noticeable solutions are proposed:
1. The Ministry of Health has the primary responsibility to monitor and coordinate with other ministries, departments, localities, agencies and units.
- To promulgate documents to guide the purchase of biological products and testing equipment by the enterprises, cooperatives and business households to perform the self-testing and recognition of such test results, and
- Provide specific instructions to localities on testing and necessary conditions for employees working at the enterprises, cooperatives and business households to return to the circulation and production and business activities at the soonest.
2. The Ministry of Transport needs to ensure the stable production and circulation of goods, specifically:
- To instruct localities to uniformly implement the "green channel" of road and waterway transport nationwide, inter-provincially, and inter-regionally to transport goods safely and smoothly on the principle of simplifying procedures without creating additional conditions and permits to impede the circulation of goods, especially for essential goods and production materials and supplies, and
- To have the prime responsibility to monitor and coordinate with the Ministry of Health and other relevant ministries, departments, localities, and agencies to promulgate the regulations and guidances on delivery and transportation in the context of the COVID-19 pandemic prevention and control.
3. The Ministry of Finance:
- To direct the General Department of Customs to ensure stable production, circulation of goods and remedy the supply chain bottlenecks.
- To support enterprises, cooperatives and business households to cut costs, mitigate financial difficulties and cash flow.
4. Request the Vietnam General Confederation of Labour:
- To consider trade union membership fees waive for union members at enterprises and cooperatives being affected by the COVID-19 pandemic in 2021 and 2022.
- To report to the National Assembly Standing Committee to allow businesses and cooperatives being affected by the COVID-19 pandemic to reduce their trade union fees in 2021 and 2022 by shortening procedures.
- To study and assess the impact to consider the reduction of trade union fees in its process of amending the Law on Trade Union.
5. The Ministry of Labour, War Invalids and Social Affairs:
- To have the prime responsibility to monitor and coordinate with other ministries, departments, localities, agencies and units and National Assembly Standing Committee to prepare a proposal on reduction for compulsory insurances contribution, or to provide support from short-term surplus balance of the Social Insurance fund to promptly support workers, businesses, cooperatives, business households and other employers. This needs to be completed in September 2021.
- To instruct and coordinate with Vietnam Social Security to research and prepare a proposal (to be completed in September, 2021) on waiving the interests on late payments of compulsory insurance in 2020 and 2021.
- To direct localities with respect to the flexibility and reducing procedures relating to regulations and conditions on the grant, extension and confirmation of Work Permit ("WP”) for foreign employees working in Vietnam in accordance with the new context for safety, prevention and control of COVID-19 pandemic within September 2021
- To research and propose to competent authorities with shortened procedures regarding allowing enterprises and cooperatives to negotiate with employees to increase overtime in day/month to respond to the situation COVID-19 pandemic, provided that the total number of overtime hours does not exceed 300 hours/year. This needs to be completed in September 2021.
We do trust the above points are notable and sufficient, but should you have any questions or need a deeper discussion on this issue, please do not hesitate to contact us.