Government orders a lowering of lending interest rates and taxes

April 08, 2013 | 11:29
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The government has requested the State Bank of Vietnam (SBV) to continue cutting lending interest rates, along with corporate income and value added taxes in an urgent measure to hasten the recovery of the national economy.

The government has requested that the State Bank of Vietnam
to continue cutting lending interest rates

The SBV will also check the implementation of lending procedures at commercial banks to offer favourable conditions for enterprises.

Meanwhile, the Ministry of Finance has been asked to consider making a plan for slashing corporate income tax to 20pct, as well as reduce value added taxes for the submission to the government in April.

Recently, Minister and Chairman of the Government Office Vu Duc Dam, cited a report from the Ministry of Planning and Investment as saying that up to 60pct of the total number of businesses which halted operations last year have resumed this year.

The news remained mixed, however. He added that even though the number of newly-licensed enterprises saw a slight increase, those facing sluggish business remained high.

The government is also determined to stabilise the foreign currency exchange rates and keep tighter control over the value of the Vietnam dong. 

The SBV was asked to cooperate with the Ministry of Construction to implement credit policies that would support families and individuals of low-income who wish to buy affordable houses of less than 70 square metres and priced below VND15 million ($714.28) per square metre.

The Ministry of Construction will make proposals on revising policies to increase the number of people who are allowed to buy houses in Vietnam, including Vietnamese people living abroad and individuals and organisations in Vietnam.

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