Prime Minister: Urgently support businesses and people to cope with US tax policy

On the afternoon of April 10, Prime Minister Pham Minh Chinh chaired the fourth meeting of the Government Standing Committee on responding to the new US tariff policy. This meeting took place after President Donald Trump announced a 90-day delay in imposing high reciprocal tariffs on dozens of trading partners, including Vietnam. The temporary tariff rate is 10%.

Prime Minister Pham Minh Chinh speaks at the meeting, April 10.

At the meeting, the Prime Minister said Vietnam's goal is to stabilize the macro economy , promote growth, control inflation, and stabilize investor sentiment. The operator also helps businesses and people adapt flexibly to the new situation, reducing dependence on one market.

According to the Prime Minister, Vietnam sees the current fluctuations as an opportunity to restructure the economy towards greening, digitalization, and rapid but sustainable development. This is also the time to restructure enterprises, increase technology application, diversify markets, products, and supply chains. Vietnam will promote large enterprises to participate more deeply in global supply chains.

The Prime Minister reminded localities and ministries to prevent unemployment. Management agencies must review affected labor groups, especially those in the textile, footwear, wood products, and seafood industries.

The Government leader also emphasized solutions to promote production and business, support enterprises to transform, adapt to the new situation and solve immediate and long-term difficulties. Support policies need to be designed with focus, key points, clear levels and resources.

"Quick, timely, consistent solutions in the direction of immediate action, long-term action, step by step," said the Prime Minister.

Specifically, the Prime Minister requested ministries and branches to study and immediately propose policies on tax and fee exemption and reduction to submit to the National Assembly for consideration and promulgation of a resolution at the session in May. The Ministry of Finance will review public investment and have sanctions to handle waste in investment and disbursement of public investment capital. Solutions to increase public investment disbursement are focused on to free up resources for the economy, create jobs, and promote growth.

The State Bank is assigned to continue stabilizing the exchange rate, ensuring foreign currency for import and export, foreign exchange reserves, and striving to reduce interest rates. The banking sector has implemented preferential credit packages for a number of sectors such as the VND500,000 billion package for infrastructure, science and technology, and stimulating domestic consumption.

The head of the Government requested to reduce at least 30% of business costs and conditions, increase decentralization and delegation of power. Vietnam also needs to exploit more effectively the 17 signed free trade agreements (FTAs), continue to open new markets such as the Middle East, Eastern Europe, Egypt, South America, etc.

Vietnam and the US agreed to start negotiations on a reciprocal trade agreement, including tax content. At the meeting, the Prime Minister requested the establishment of a negotiation team with the US side, led by Minister of Industry and Trade Nguyen Hong Dien.

The working group will develop appropriate scenarios and plans for negotiations in the spirit of "ensuring maximum national and ethnic interests and harmony and risk sharing". The Prime Minister noted that it must be placed in the overall development of Vietnam's international relations, not to affect the overall 17 FTAs ​​signed with more than 60 markets.

Along with that, Vietnam will maximally and satisfactorily resolve trade issues that the US is concerned about, especially origin of goods, non-tariff barriers, and intellectual property. At the same time, Vietnam will actively exchange goods (aircraft, LNG, defense and security trade) with countries, including the US. "Dealing with this issue does not affect other issues, dealing with this partner does not affect other partners," the Prime Minister noted.

According to VnExpress

Source: https://baobacgiang.vn/thu-tuong-chinh-phu-khan-truong-ho-tro-doanh-nghiep-nguoi-dan-ung-pho-voi-chinh-sach-thue-cua-my-postid415855.bbg