HANOI, July 20 (Xinhua) -- Reserve resources of many companies in Vietnam are no longer available, urging the government to take measures to keep them afloat, local media reported on Thursday, citing the country's bank association.
It is necessary for the Southeast Asian country to have mechanisms to support firms and promote business development like it was done during the COVID-19 pandemic, local newspaper Vietnam News reported, citing the Vietnam Banks Association (VNBA).
Stressing the economy's limited capital absorption capacity, Nguyen Quoc Hung, VNBA's general secretary, suggested the government reduce the value-added tax (VAT) for commercial banks, which would enable them to sharply decrease lending interest rates to support firms.
He also suggested that state-owned commercial banks be allowed to increase their charter capital from profits in the coming years through the form of paying dividends in shares from profits left after setting up required funds for the 2022-2023 period, the newspaper reported.
He also noted the need to guarantee funds for small and medium-sized enterprises as well as promote public investment and remove difficulties in legal procedures for unfinished projects and social housing projects. ■