Transport Ministry urges more supportive policies for transport enterprises

The Ministry of Transport has proposed reducing the road maintenance fees by 15 per cent and making business conditions for transport enterprises easier to help them overcome financial difficulties caused by the COVID-19 pandemic. 

Transport Ministry urges more supportive policies for transport enterprises

Passenger buses parked at Hanoi's Giap Bat Bus Station. 

The support would be applied this month, it said.

The ministry said the COVID-19 outbreak has harmed the road transport sector and it would take two more months for transport businesses to resume operations as normal.

More support policies from the Government and ministries and branches were vital, it said.

The ministry estimates that tens of thousands of transport businesses are facing financial difficulties as revenue reportedly decreased by 75 per cent compared to the same period of last year.

Hundreds of thousands of people have suffered income decreases or even lost their jobs.

To support enterprises, the Government has launched many solutions such as rescheduling bank debts, reducing interest rates, lending at 0 per cent interest rates to help enterprises pay salaries, reducing land rents, and suspending social insurance payments.

However, this only helped a small number of businesses who suffered losses of a maximum of 50 per cent of revenue.

Nguyen Van Quyen, chairman of the Vietnam Automobile Transport Association, said enterprises who were forced to stop their operations such as those in tourism, aviation and transport needed support.

“Bus enterprises have encountered difficulties like never before. They will face bankruptcy without necessary support,” he said.

He also said interest rates applicable to transport enterprises remained high.

 

Nguyen Anh Quan, General Director of Taxi G7 said agencies should support 100 per cent of social insurance payments for affected enterprises in the past several months instead of postponing the time of payment.

Dang The Phuong, Vice Chairman of Hai Phong City’s Transport Association, said many businesses in cargo transport in the city still operated moderately, especially those that had vehicles running in border areas.

Ngo Tri Long, former head of the Ministry of Finance’s Price Market Research Institute, said transport enterprises found it hard to access loans at low-interest rates.

Long suggested apart from the State's tax policies such as tax exemption and extension or reduction of lending interest rates, the Government should reconsider some taxes and fees in the transport sector as it had a great impact on many other fields.

A representative of the Ministry of Transport said the ministry has proposed the Ministry of Finance reduce 15 per cent of road maintenance fees for transport enterprises this month.

The ministry will simplify administrative procedures and create convenience for enterprises in the next months.

Previously, the Ministry of Transport proposed the Ministry of Finance cut 30 per cent of the road maintenance fee for vehicles in March, 100 per cent of fee in April and 50 per cent of fee in May.

The move was considered a supportive policy to help affected enterprises. More than 800,000 vehicles were granted badges and signs by departments of transport were eligible for the policy.  VNS

Transport Ministry proposes road use fee exemption to help transport firms

Transport Ministry proposes road use fee exemption to help transport firms

The burden on transport enterprises will be reduced if a proposal for a three-month exemption of road maintenance fees is approved, the Ministry of Transport has said.

Ministry proposes road maintenance fee cut for transport firms

Ministry proposes road maintenance fee cut for transport firms

The Ministry of Transport (MoT) recently asked the Ministry of Finance (MoF) to exempt and reduce the road maintenance fees for transport vehicles and firms affected by the COVID-19 pandemic.

 
 

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