Local Government Assistant Program for Enterprises Adversely Affected by COVID-19

On 16th August 2021, the People’s Committee of Ho Chi Minh City issued Decision No. 2724/KH-UBND to propose local government assistant program for enterprises adversely affected by the COVID-19 during and after the COVID-19 pandemic is controlled.

On 16th August 2021, the People’s Committee of Ho Chi Minh City issued Decision No. 2724/KH-UBND to propose local government assistant program for enterprises adversely affected by the COVID-19 (“Decision 2724/KH-UBND”).

Accordingly, the purpose of Decision 2724/KH-UBND is to effectively mobilize all resources, support domestic and foreign enterprises in maintaining their manufacture and business activities where needed, effectively operate and ensure the safety conditions according to the Ho Chi Minh City People’s Committee’s criteria. Decision 2724/KH-UBND aims to: (i) stabilizing  economic growth, recovering and developing production and business when the pandemic is controlled, ensuring state budget revenues and recurrent expenditures; (ii) maintaining  financial assistant campaign and reducing  costs for manufacturing enterprises to recover and develop manufacturing and business activities after the COVID-19 pandemic; and (iii) ensuring social security, employment, taking care of the health and life for employees; practically and effectively supporting for employees and employers.

Decision 2724/KH-UBND provides for 04 solutions to aid enterprises as follows:

  1. Credit support: this group of solution focuses on two issues, such as restructuring repayment terms, exemption and reduction of interest and fees, and keeping the debt group; and introducing new credit policies with preferential interest rates for enterprises.
  2. Business support program focusing on   costs reduction and intensive care of employees’ lives: This group of solution purports to supporting enterprises to exempt, reduce taxes, land rent, electricity bills, water bills; regulating new standards applicable to manufacturers and business activities to ensure safety against pandemic, and proposing solutions to facilitate circulation of goods…etc.
  3. Market expansion support program: this group of solutions aim to supporting enterprises to participate in fairs; commercial channels; organize meetings with business associations, foreign investors and foreign-invested enterprises in order to expand markets; organize a series of events, product exhibitions, conferences, seminars, export forums, seminars for updated market information of…etc.
  4. Information support and human resource training solutions: this group of solution implements plans, programs to accelerate digital transformation; and organize training courses on digital transformation…etc.

The People’s Committee of Ho Chi Minh City requests departments, agencies, People’s Committees of Thu Duc City and districts to immediately implement the above solutions in August 2021. 

Read the full 2724/KH-UBND: DOWNLOAD