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Many state-owned groups see big losses amid COVID-19 crisis

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Many enterprises have reported big losses because of Covid-19, including large state-owned groups.

The government’s report to the National Assembly show a sharp decline in tax and fee collections as businesses have been hit hard by Covid-19. The decrease is also attributed to the policies on tax remissions and tax payment deadline extensions, amounting to VND18.78 trillion.

Many state-owned groups see big losses amid COVID-19 crisis

“The tax collection in the first nine months of the year was the lowest in many years,” the report said. .

The tax and fee collections were just equal to 61.6 percent of the yearly plan, a decrease of 8.1 percent decrease compared with the same period last year.

Meanwhile, in previous years, the collections of the first nine months of 2016-2019 were 69.7-72 percent of the yearly plans and the collections increased by 7-15.2 percent year after year.

Covid-19, which has seriously affected China, the US and Europe, the biggest partners of Vietnam, has also affected Vietnam trade, especially exports, leading to a decrease of VND35.279 trillion in state budget collection compared with the same period last year.

The price of crude oil fell to below $40 per barrel in the first nine months of the year, causing a considerable decrease to revenue for the state budget.

The government thinks the state budget collection in the last three months of the year will still face difficulties.

The second Covid-19 outbreak occurred in key economic centers, including Da Nang, Quang Nam, Hai Duong, Hanoi and HCM City. And Vietnam’s big trade partners have not controlled the epidemic and as a result Vietnam’s exports and investment will still bear adverse effects.

The government’s report named many enterprises which took big losses in H1 and are predicted to continue facing difficulties.

Vietnam Airlines Corporation predicts a loss of VND15-16 trillion in 2020. It is expected that it will stop taking a loss in 2024. Meanwhile, its taxable income was VND2.34 trillion in 2019, and the corporate income tax it paid was VND468 billion.

The Vietnam Chemicals Group took a loss of VND1 trillion in H1 and is predicted to continue taking a loss of VND500 billion in Q3. It reported a loss of VND1.595 trillion in 2019 and did not have to pay corporate income tax.

Petrolimex reported a loss of VND220 billion in H1. Its taxable income was VND1.148 trillion in 2019, and it paid VND229 billion in corporate income tax.

The estimate of the State budget revenue in 2020 is VND1,510 trillion. The accumulated revenue in the first nine months was VND975.3 trillion, or 64.5 percent of the estimate.

As of September 23, the state budget had spent VND17.49 trillion to fight against Covid-19 and support people facing difficulties during the pandemic. 

Luong Bang

Source: https://vietnamnet.vn/en/business/many-state-owned-groups-see-big-losses-amid-covid-19-crisis-680872.html

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China-ASEAN Expo opens, featuring digital economy, RCEP

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The 17th China-ASEAN Expo and China-ASEAN Business and Investment Summit kicked off on Friday, highlighting booming digital economy cooperation and the implementation of a recently signed major trade pact.

Chinese President Xi Jinping called for cultivating a closer community with a shared future for China and the Association of Southeast Asian Nations (ASEAN) when addressing via video the opening ceremony.

Chinese President Xi Jinping addresses the opening ceremony of the 17th China-ASEAN Expo and China-ASEAN Business and Investment Summit via video on Nov. 27, 2020. (Xinhua/Li Xueren)

This year’s expo aims to deepen cooperation in trade, the digital economy, science and technology, health, and other fields.

With an exhibition area of 104,000 square meters, the expo has 5,400 booths in Nanning, capital of south China’s Guangxi Zhuang Autonomous Region. More than 1,500 enterprises from home and abroad will participate virtually in the four-day event, according to the organizers.

The expo will also host 11 high-level forums and more than 160 economic and trade promotion activities.

China-ASEAN Expo opens, featuring digital economy, RCEP

Booming digital cooperation

This year is designated as the China-ASEAN Year of Digital Economy Cooperation. Strengthening digital economy cooperation was the common call of ASEAN leaders at the opening ceremony.

ASEAN’s digital economy is estimated to increase from 1.3 percent of the group’s GDP in 2015 to 8.5 percent in 2025, according to ASEAN Secretary-General Lim Jock Hoi, adding that China is leading the development of digital infrastructure and is an important partner of ASEAN in promoting the digital economy in the region.

This year’s expo also highlights the Regional Comprehensive Economic Partnership (RCEP), the world’s biggest trade pact, which was signed earlier this month by 15 Asia-Pacific countries including ASEAN’s 10 member states and China. It was a massive move for regional economic integration, multilateralism and free trade.

China-ASEAN Expo opens, featuring digital economy, RCEP

The signing ceremony of the Regional Comprehensive Economic Partnership (RCEP) agreement is held via video conference in Hanoi, Vietnam, Nov. 15, 2020. (VNA via Xinhua)

The expo features an exhibition area, and enterprises from RCEP countries including Japan, the Republic of Korea, Australia and New Zealand have participated in the event, according to Wang Lei, secretary-general of the expo’s secretariat.

High-level dialogue conducted during the expo will promote greater participation from RCEP members, said Wang, adding that the expo will help integrate the market advantages and resources of the 10 ASEAN members with the capital and technical advantages of other RCEP members.

“I believe that the RCEP will also provide a solid foundation for an open, inclusive, and rules-based global trade environment,” said Myanmar President U Win Myint at the expo’s opening ceremony.

Xu Ningning, executive president of the China-ASEAN Business Council, said that opening up the markets of the 15 countries to each other will bring about new changes and closer regional cooperation. 

(Source: Xinhua)

Source: https://vietnamnet.vn/en/business/china-asean-expo-opens-featuring-digital-economy-rcep-694444.html

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VNR petitions for reduction of infrastructure charge

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Passengers board a train. VNR has proposed an infrastructure use fee reduction – PHOTO: LE ANH

HANOI – Vietnam Railway Corporation (VNR) has proposed reducing the infrastructure charge from 8% of its railway transport revenue to 2% due to the difficulties caused by Covid-19.

The proposal has been sent to the Ministries of Transport and Finance and the Commission for the Management of State Capital at Enterprises.

This year, VNR may generate nearly VND3.2 trillion in revenue and its losses were estimated at VND643 billion. It has minimized its operation cost and furloughed its staff.

VNR and transport firms have encountered cash flow difficulties to maintain their operations. They are finding it hard to overcome their budget deficit, VNR Chairman Vu Anh Minh said.

VNR needs VND320 billion in 2020 and VND350 billion in 2021 to make good its losses.

VNR’s railway transport revenue was estimated at VND2.7 trillion this year. With this revenue, it will have to pay VND213 billion as the infrastructure use fee.

If the proposal to reduce the infrastructure use fee is approved, the fee will be cut by VND160 billion. The reduced amount in 2021 will be an estimated VND179.5 billion.

Thus, the firm can make good half of its budget deficit.

Source: https://english.thesaigontimes.vn/79630/vnr-petitions-for-reduction-of-infrastructure-charge-.html

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Mekong Delta expressway network expansion: infographic

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Source: https://e.vnexpress.net/infographics/economy/mekong-delta-expressway-network-expansion-infographic-4200146.html

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