Vietnam Government Issues Economic And Social Recovery And Development Plan, Enterprises Return To Work Quickly

After the Spring Festival holiday in 2022, Vietnam textile enterprises return to work quickly, and export orders increase significantly! Many textile enterprise orders have even been scheduled to the third quarter of this year.

Issued by the Vietnamese government

Economic and social recovery and development plan

According to the website of Vietnam's "government electronic news", the Vietnamese government promulgated the economic and social recovery and development plan (plan) on January 30 to provide support for people and workers, enterprises, cooperatives, operators and industries and departments that create impetus for economic recovery and development during the two years from 2022 to 2023.

The plan puts forward five groups of main tasks and measures: first, the combination of economic openness and investment in improving medical and health, and epidemic prevention and control capacity.

Second, ensure people's livelihood and support employment. Including providing 3-month housing rental support for migrant workers (1 million Vietnamese Dong per month for those who return to the labor market, and 500000 Vietnamese Dong per month for those who have already worked in enterprises, and the implementation time is in the first six months of 2022); We should implement social policies and preferential loan policies of banks.

The third is to help enterprises, cooperatives and business households resume production and operation. It includes the reduction of 2% tax rate (8%) or reduction of turnover tax by 20% for goods and service enterprises applying 10% value-added tax rate in 2022; Aviation oil environmental tax will be reduced by half; 30% reduction of land and water rent; Delay the payment of corporate income tax, personal income tax, value-added tax, special consumption tax and land rent in 2022; During the period from 2022 to 2023, we will provide 2% loan interest discount every year and reduce the loan tax rate by about 0.5% - 1% and other tax reduction and financial support policies.

Fourth, invest in the development of infrastructure, and strive to build the east line North-South Expressway as soon as possible, connecting the northern mountain area, the central plateau, the southeast region and the Mekong Delta region; Transportation interconnection infrastructure of cross regional and seaports, border ports and industrial zones; Telecommunications and Internet infrastructure.

Textile and garment enterprises lead export

Garment10 Co., Ltd. is one of the textile and garment enterprises that started production on February 7, 2022 after the lunar new year.

According to than Duc Viet, general manager of garment10 Co., Ltd., the rate of employees returning to work after the Spring Festival has reached more than 90%, and the rate of returning to work in factories has even reached 100%. Unlike in the past, the textile and clothing industry usually has fewer job vacancies after the Spring Festival, but garment10 orders this year have increased by about 15% compared with the same period last year.

Orders signed on May 10 last year have been scheduled for the end of the second quarter of 2022, according to than Duc Viet. Even for the key products such as vests and shirts, after 15 months of idling, the current orders have been arranged to the end of the third quarter of 2022.

The same situation also appears in other textile and garment enterprises. Pham Anh Tuan, director of z76 company of Vietnam's Ministry of defense industry, said that since the fifth day of the new year, the company started production and 100% of its employees returned to work. So far, the company has received orders up to the third quarter of 2022.

The same is true of Huong Sen Group Co., Ltd., whose deputy general manager, do van VE, shared the positive phenomenon of textile and clothing export in 2022: we started production on February 6, 2022, and the rate of returning to work was 100%; The company strictly abides by the epidemic prevention measures, and the employees are divided into three shifts to produce in turn.

Since the beginning of the year, the company has exported 5 containers of products to South Korea, China and other countries.

Regarding the export situation of the overall textile and clothing industry, the Vietnam textile and clothing association (vitas) predicts an optimistic situation this year, as the main markets such as the United States and the European Union have reopened.

Export growth of 10.2% in the first two months

Vietnam's goods exports amounted to US $53.79 billion in the first two months of 2022, up 10.2% from the same period in 2021, Vietnam's industry and Commerce Daily reported on February 28. A total of 9 categories of commodities exported exceeded US $1 billion, accounting for 71.6% of the total exports. The export volume of shrimp products reached 313 million US dollars in January, an increase of 43% compared with the same period in 2021.

Vietnam's Ministry of industry and trade believes that export enterprises should strengthen the application of free trade agreements such as evfta (Vietnam EU free trade agreement), cptpp (comprehensive and progressive trans Pacific Partnership Agreement) and RCEP (regional comprehensive economic partnership agreement), so as to promote the diversification of markets and export commodities, and improve the quality of goods, so as to meet the requirements of relevant markets on environmental protection, environmental protection and environmental protection Requirements on product quality and rules of origin. Efforts should be made to develop emerging markets and promote the export of goods through digital network platform.

(source: CCPIT)