Businesses reinvest after floods

HNN - In the past three floods, businesses and business households in Hue suffered a lot of damage. Along with the recovery work, the issue of risk provision for emergency situations was also raised by businesses to be able to reinvest after natural disasters.

Transaction at Agribank Phong Dien branch

Quickly restore production

The three consecutive floods recently had a strong impact on the production and business activities of many enterprises and business households in the area. Many areas were deeply flooded, traffic was cut off, causing disruptions in the supply chain of raw materials and consumption of goods. Many factories, warehouses, machinery and equipment were damaged, and inventory was soaked with water, causing great damage. In addition to material losses, enterprises also faced financial pressure from the cost of overcoming the consequences. With 96% of small and medium enterprises having low risk tolerance, overcoming "worries" to reinvest is not easy for Hue enterprises.

Mr. Phan Van Nhat, Director of MADG Co., Ltd., Chairman of Hue CEO Club, said that after the natural disaster, many businesses, including MADG, suffered significant losses. However, in the context of economic recovery after the natural disaster, it is important to overcome fear, dare to reinvest and take advantage of support policies from the State to quickly restore production. Only when businesses proactively stand up, turn difficulties into motivation, can they maintain growth and adapt to develop more sustainably after the natural disaster.

In fact, most enterprises, especially small and medium enterprises, do not have a mechanism to protect themselves against risks because the financial reserve funds are almost zero, while support policies from the State often come late, so it will be difficult to stand up immediately after natural disasters. This raises the issue of risk reserve for enterprises, especially small and medium enterprises. Therefore, enterprises need to build their own reserve funds to handle emergency situations and maintain minimum operations. Establishing a risk reserve fund must be considered part of a sustainable enterprise management strategy.

Some enterprises have also begun to build reserve funds, but on a small scale. However, this is the foundation for risk prevention at a higher level. At Maries Joint Stock Company, in recent days, the Company has activated the Enterprise Emergency Support Fund to support the staff facing difficulties.

Ms. Ho Thi Suong Lan, Director of Maries Joint Stock Company, said that this fund is not large, only to provide emergency support to a part of the staff and to lend to staff to buy and repair equipment and houses. The more important issue is that businesses must operate again, focus on restoring production to ensure long-term issues. Therefore, having early statistics to assess the damage of businesses and business establishments is very necessary at the present time, because this is the basis for proposing appropriate support policies.

Activate support policy

The losses of enterprises will somehow affect the overall growth. Therefore, early plans and solutions to accompany enterprises will not only help enterprises recover from natural disasters but also contribute to promoting economic growth.

According to information from Hue City Tax, the unit is implementing policies to extend the deadline for tax declaration and payment, and exempt and reduce tax for those directly affected by floods.

According to regulations, enterprises, organizations, households and individuals suffering material damage due to natural disasters and storms and floods are entitled to many tax support policies such as: Tax payment extension; exemption from late payment fees and exemption from administrative fines; deduction and exemption from value added tax; including in deductible expenses when determining taxable income for corporate income tax the value of losses, funding to overcome the consequences of natural disasters and welfare expenses to support affected workers; reduction of special consumption tax; exemption and reduction of resource tax and non-agricultural land use tax; exemption and reduction of land rent. Consideration of support is carried out based on the actual level of damage to help enterprises. In addition, the City Tax also strengthens guidance and timely answers to administrative procedures, creating the most favorable conditions for taxpayers to access support policies as soon as possible.

Deputy Director of the State Bank of Region 9 Pham Ba Nam also informed that the State Bank has been directing commercial banks in the area to urgently carry out surveys, collect and assess the extent of damage to businesses, especially small and medium-sized enterprises and business households in areas affected by floods. On that basis, propose additional appropriate support and companion solutions. Commercial banks also proactively implement appropriate support policies such as restructuring debt repayment terms, considering debt deferral or extension, reducing loan interest rates, prioritizing credit packages to restore production to help businesses stabilize operations soon, not allowing any business to be disrupted due to lack of capital after natural disasters.

Article and photos: HOANG ANH

Source: https://huengaynay.vn/kinh-te/doanh-nghiep-tai-dau-tu-sau-lu-159764.html