The Viet Nam Automobile Transport Association (VATA) is pressing for favourable policies to help them overcome financial difficulties amid mounting fuel costs and the growing competition from unofficial drivers.

VATA Chairman Nguyen Van Quyen said Circular No 03 issued by the State Bank of Vietnam (SBV) had allowed automobile transport firms to have their loan repayment date extended to December 31, 2022.

However, many firms were so hard hit by the pandemic that they missed the deadline and had their loans classified as group 5 non-performing loans. As such, they have been disqualified from taking out new loans for recovery.

In the face of such a situation, VATA urged SBV to offer more loan extensions to the firms and not to re-classify their overdue loans. Additionally, SBV is urged to hold new loans open to firms in arrears as long as they have plausible business plans.

The same goes for Decree No 34, which has pushed back tax payment dates to December 31, 2022. The chairman said many firms had had their bank accounts frozen for reasons of failure to pay taxes by the due date.

"Firms falling behind on tax payments have had their bank accounts suspended by tax authorities," said Quyen.

VATA urged the Ministry of Finance and the General Department of Taxation to extend the due date to September 30, 2023, to support firms in financial hardship and maintain the value-added tax rate of 8 per cent to stimulate domestic consumption.

Additionally, VATA called for the reduction of registration tax to 2 per cent to incentivise higher investments in new vehicles.

The chairman also said due to the unfavourable economic situation many automobile transport firms had fallen into arrears with their social insurance premiums.

The failure to pay social insurance premiums to Viet Nam Social Security has led to the situation that their employees have had their health insurance cards rendered invalid. That means the employees would not be entitled to health insurance payments if they incur costs of medical care.

For this reason, VATA urged the Ministry of Labour, Invalids, and Social Affairs and the Viet Nam Social Security to extend the due date of premium payment to June 30, 2023, to give them more room for recovery.

For firms unable to pay social insurance premiums, health insurance premiums, and unemployment premiums collectively, VATA suggested their employees be entitled to health insurance payments once the firms fulfil their health insurance liability, rather than having to fulfil all three liabilities as usual.

VATA also called for the write-off of the interest payments incurred by the firms between March 2020 to December 31, 2022, to relieve their financial burden. — VNS