In the context of overall economic hardships, Vinh City - the development centre of Nghe An province -is facing numerous challenges. Vietnam Business Forum interviewed Mr Nguyen Xuan Sinh, Chairman of Vinh People’s Committee, to learn more about this. Phan Quang reports.
Tax is people’s money
This year is full of challenges. Vinh City will face considerable difficulty to achieve their budgetary target when the country’s stimulus package worth over VND29 trillion (US$2.4 billion), aimed at tax breaks and exemptions for businesses, is deployed?
We anticipated this problem and took drastic actions from the start, but numerous difficulties still prevailed. Budgetary collection from real estate reached VND1,500 billion last year, but we planned just half of that this year. Nonetheless, this target is likely hard to reach.
The city carried out socio-economic objectives and macro-economic policies were further supplemented. The Government launched a stimulus package worth over VND29 trillion aimed at tax breaks and exemptions for businesses. The city thus dropped VND69 billion of taxes.
Companies are in debt to over VND100 billion in taxes to the State Budget. This situation has forced the city to take drastic action. Vinh set up three working groups for the purpose of collecting tax arrears.
Previously, interest rates were high and outstanding tax debts bore low rates, many companies sought the margin by delaying tax payment. Now, despite difficulties, we must take aggressive actions. We must fight against tax evasions in other areas, including non-agricultural land tax.
If authorities aggressively collect arrear taxes in this problematic situation, do you think businesses will fear facing authorities?
We support companies with real hardships but we severely deal with tax evaders. Measures must be flexible, elastic and lawful.
Tax debt is the people’s money. More than VND100 billion is a large sum. Without having this amount returned, what does the city use to pay salaries, or provide social security? How can the city answer the people and businesses seriously implement the tax regime.
Entrepreneurs - smiles and tears
In fact, businesspeople are really in need of sharing from the Government to weather the "storm" more than ever. What do you think about this?
Businesses and entrepreneurs are sweat, tears and smiles. One of my friends, an entrepreneur, revealed that the most precious property of businessmen is social recognition, workshops, factories, supermarkets and townships that they build up. When they develop, they contribute more to society and to the economy, but now the sweeping storm leaves only trees with strong roots.
So far, I am very serious about supporting businesses to deal with difficulties and challenges. The city government has coordinated with provincial authorities to publicise mechanisms and policies.
We think that transparency of policies and mechanisms are the most important because they will help both businesses and authorities know what and how to do. For me, if things are out of the power of the city government, the city will send those things to competent authorities.
Now, the real estate industry is in difficulty. The government delays the term for rent payments for some troubled property companies. The city expedites administrative procedures and grants land ownership rights to companies with real demand and business.
Despite difficulty, the city still needs to develop urban infrastructure. How will the city solve this problem?
First of all, the city creates
On October 28, 2012, Vietnam Airlines opened Da Nang - Vinh flight routes with four flights per week, using ATR72 aircraft (68 seats). This event helped Vinh City expand its connectivity
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every condition for favourable construction of infrastructure and industrial zones for investors. If the State fund source shrinks, we must seek alternative sources rather than stay and wait. What Vinh City needs now is the development of service systems such as health, business and education centres.
We give priority to what quickly brings benefits to enterprises to pool their investment. For example, market and trade centre projects will attract investors because of their quick growth and returns.
In addition to boosting internal resources for the economy, new industrial and agricultural promotion policies, training, scientific and technical application also need to be implemented effectively. We have policies that support funds for the people to expand business models. Being an education and training centre, Vinh City has advantage over high quality human resources, thus satisfying requirements of investors. Creating a favourable environment to attract and encourage investors to Vinh City is a current and long-term task.
Thao Trang
Vietnamese
