Monday, July 13 2020

VietNamNews

MoT urges more supportive policies for transport enterprises

Update: June, 04/2020 - 19:47

 

Passenger buses parked at Hà Nội's Giáp Bát Bus Station. — VNA/VNS Photo Việt Hùng

HÀ NỘI — The Ministry of Transport has proposed reducing the road maintenance fees by 15 per cent and making business conditions for transport enterprises easier to help them overcome financial difficulties caused by the COVID-19 pandemic. 

The support would be applied this month, it said.

The ministry said the COVID-19 outbreak has harmed the road transport sector and it would take two more months for transport businesses to resume operations as normal.

More support policies from the Government and ministries and branches were vital, it said.

The ministry estimates that tens of thousands of transport businesses are facing financial difficulties as revenue reportedly decreased by 75 per cent compared to the same period of last year.

Hundreds of thousands of people have suffered income decreases or even lost their jobs.

To support enterprises, the Government has launched many solutions such as rescheduling bank debts, reducing interest rates, lending at 0 per cent interest rates to help enterprises pay salaries, reducing land rents, and suspending social insurance payments.

However, this only helped a small number of businesses who suffered losses of a maximum of 50 per cent of revenue.

Nguyễn Văn Quyền, chairman of the Vietnam Automobile Transport Association, said enterprises who were forced to stop their operations such as those in tourism, aviation and transport needed support.

“Bus enterprises have encountered difficulties like never before. They will face bankruptcy without necessary support,” he said.

He also said interest rates applicable to transport enterprises remained high.

Nguyễn Anh Quân, General Director of Taxi G7 said agencies should support 100 per cent of social insurance payments for affected enterprises in the past several months instead of postponing the time of payment.

Đặng Thế Phương, Vice Chairman of Hải Phòng City’s Transport Association, said many businesses in cargo transport in the city still operated moderately, especially those that had vehicles running in border areas.

Ngô Trí Long, former head of the Ministry of Finance’s Price Market Research Institute, said transport enterprises found it hard to access loans at low-interest rates.

Long suggested apart from the State's tax policies such as tax exemption and extension or reduction of lending interest rates, the Government should reconsider some taxes and fees in the transport sector as it had a great impact on many other fields.

A representative of the Ministry of Transport said the ministry has proposed the Ministry of Finance reduce 15 per cent of road maintenance fees for transport enterprises this month.

The ministry will simplify administrative procedures and create convenience for enterprises in the next months.

Previously, the Ministry of Transport proposed the Ministry of Finance cut 30 per cent of the road maintenance fee for vehicles in March, 100 per cent of fee in April and 50 per cent of fee in May.

The move was considered a supportive policy to help affected enterprises. More than 800,000 vehicles were granted badges and signs by departments of transport were eligible for the policy. — VNS

 

 

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