VNBusinessNews – Tien Phong newspaper asked senior Planning and Investment Ministry economist Vu Xuan Thuyen when stimulus for small-to medium-sized enterprises was likely to begin.

Why did your ministry prepare its report about the status of the SMEs?

“I can guarantee that the SMEs will not have to buy US dollars at the high rates of last year”.

Prime Minister Nguyen Tan Dung ordered a report about the status of the SMEs in the economic downturn and the Government has been using it to devise measures to help them through their difficulties.

Your ministry has already completed a survey to assess their difficulties. In your view what are the most serious?

Different sectors have different problems. So have enterprises. Shoe and garment makers are the hardest hit; many of their export orders have been cancelled.

Exporters of rice and other agricultural products are in a better position because their commodities meet the daily needs of people in other countries.

Enterprises dealing with building materials are almost at a standstill because investment in construction projects has been slashed.

The Ministry of Construction has proposed a VND2.5 trillion (US$147 million) package to rescue real-estate companies but it has yet to win approval and in my opinion the industry will remain quiet for at least the first six months of this year.

Other sectors will remain in difficulty at least until the third quarter.

What suggestions has the ministry made to the Prime Minister?

I drafted the report sent to the Prime Minister.

In it, I proposed a 30% reduction of the corporate tax for SMEs. The Prime Minister approved the proposal and it now awaits the National Assembly Standing Committee’s ratification.

We also asked the government for a 25% reduction in the land tax SMEs pay in industrial parks but it has yet to be accepted.

2009 is forecast as a very difficult year for SMEs. Has the ministry any measures in the pipeline to help them?

Yes, 2009 will be a hard year for SMEs. But we will support them to overcome difficulties and challenges.

Among the first measures we are thinking about is to ask the State Bank of Viet Nam to introduce a reasonable rate of foreign exchange to help promote exports.

I can guarantee that the SMEs will not have to buy US dollars at the high rates of last year. The Government will also support them to promote their goods and find new markets.

New outlets will help the enterprises continue and expand production.

An example was the sale of ba sa catfish to Britain.

We’ll try to develop policies that will help 80% of successful enterprises maintain the same rate of production as last year. I’m confident our proposals will receive government support.

In your opinion what measures should be immediately implemented to lift some of the burden from SMEs?

In my opinion, enterprises should think of maintaining production rather than making a profit for the immediate future.

The government’s stimulus package, including the constant reduction of the prime interest rate, the 4 per cent subsidy for the interest paid for dong loans and the encouragement of investment and consumption provides an opportunity for the starting of new enterprises.

I think it’s time for successful enterprises to think about lower profits.

SMEs should also offer their workers refresher courses. (VNS)