July 23, 2021

[Webinar Recap] Government Measures to Support Employers and Employees amid the COVID-19 Pandemic

  
On Friday 23 July, EuroCham and KPMG hosted a webinar to share the latest updates on government measures to support companies and their workers during the current fourth wave outbreak of the COVID-19 pandemic. The event gathered over 200 attendees and featured special guest speakers Andrea Godfrey, Partner & Head of Global Mobility Services for KPMG in Vietnam; and Hai Ha Nguyen, Director of Tax & Corporate Services.

EuroCham Executive Director Delphine Rousselet opened the webinar, and set the scene for the presentation from KPMG: With Vietnam in the midst of a fourth wave COVID-19 outbreak, the government has introduced a number of policies to support companies and their workers to weather this storm, the latest of which are Resolution 68 and Decision 23.

In her presentation, Andrea Godfrey provided a background to Vietnam’s current socio-economic environment: Cases of COVID-19 continue to rise – particularly in the South – and this could have an impact on economic growth in 2021. Around 50,000 businesses have closed or been suspended so far. As a result, unemployment has risen while average incomes have fallen. Industries hardest hit include F&B, transport, and tourism. However, foreign direct investment remains robust and should return to previous levels if vaccination programs proceed as planned.
  
  

In 2020, the government announced a “62 trillion” package through Resolution 42. However, disbursement was slow, procedures complicated, and take-up low. Reflecting on lessons learned, the government has decided to provide more support for companies and workers in 2021, in particular those who are low-skilled or vulnerable; and to speed up the disbursement process.

Hai Ha Nguyen then discussed Resolution 68 and Decision 23, both issued in July 2021, which were issued based on the lessons learned from previous waves of the pandemic. First, for employers, these regulations include a 12-month drop to 0% contributions to the Labour

Accidents and Occupational Diseases Insurance Fund, and a suspension of up to 12 months for contributions to the Retirement and Survivorship Fund. They also include financial support for vocational training and an interest-free loan to cover salaries for up to three months of the regional minimum wage. Meanwhile, for employees, the regulations also include support packages for those who lose their jobs and, in particular, for those raising children. Ms Nguyen also discussed how these regulations are being implemented in practice.

Andrea Godfrey then compared the recent regulations to those issued in 2020. She said that the new regulations have covered more beneficiaries, looser lending conditions, simplified procedures, and clearer approval. However, there are also some uncertainties. These include how to define ‘bad debt’ for lending assessment and the procedures for freelancers, which could be subject to different interpretation at the provincial level.

In the Question & Answer session, speakers and audience discussed the tax implications of support packages; the verification requirements around training funds; support for the manufacturing sector; and whether companies can request rent reductions.

Concluding the event, Andrea Godfrey said that the government’s regulations are a positive step forward, and are much clearer than those announced in 2020. Hai Ha added that the disbursement should also be improved this time, and Andrea Godfrey advised companies to have the policies and documentation to evidence what they have used the support funds for.

More News

See all

September 22, 2023

EuroCham Vietnam attended National Assembly’s Vietnam Socio-Economic Forum 2023: Reinforcing Internal Capacity for Sustainable Growth

Read more

September 22, 2023

EuroCham Medical Devices and Diagnostics Sector Committee (MDDSC) joined ASEAN Common Submission Dossier Template Workshop

Read more

September 22, 2023

EuroCham’s collaborative meetings with the EU Ambassador-Designate Julien Guerrier

Read more

September 22, 2023

EuroCham Vietnam extended a warm welcome to French Ambassador to Vietnam H.E .Olivier Brochet

Read more

September 22, 2023

EuroCham Vietnam joined a launch of the “Circular Economy & Pioneering Models” book

Read more

September 21, 2023

EuroCham Vietnam hosts an exclusive evening to welcome EU Ambassador-Designate to Vietnam

Read more

September 15, 2023

EuroCham engages in a productive dialogue with the Administrative Procedures Control Agency and Reform (ACAPR)

Read more

September 15, 2023

A resounding success: Vietnam International Sourcing Expo 2023 and the EU-VN Trade Forum

Read more

September 15, 2023

[Event recap] EuroCham Women in Business Sector Committee hosted successful Roundtable on Gender Pay gap with Fulbright Professor Graeme Walker

Read more

September 15, 2023

[Sector Committee spotlight] Food, Agri and Aqua Business Sector Committee (FAABS)

Read more

September 14, 2023

Ho Chi Minh City Economic Forum 2023 and the 100 CEOs -Tea Connect spotlight green growth and net zero initiatives

Read more

September 12, 2023

EuroCham Vietnam engages in key talks with Luxembourg delegation to bolster EU-Vietnam economic relations

Read more

September 08, 2023

EuroCham participates in an inaugural meeting of Government Taskforce on Administrative Reforms (APR)

Read more

September 08, 2023

[CORPORATE] First Bayer ForwardFarm of Southeast Asia launched in Vietnam

Read more

September 08, 2023

EuroCham contributes to a critical discussion on attracting foreign investment in high-technology and promoting technology transfer

Read more

September 07, 2023

EuroCham Food, Agri, and Aqua Business Sector Committee (FAABS) explores sustainable aquaculture solutions at Skretting Factory in Long An

Read more

August 31, 2023

EuroCham delegation visits Bac Giang to discuss EU-Vietnam business trends

Read more

August 25, 2023

EuroCham Green Growth Sector Committee spotlights blue-green infrastructure solutions

Read more

August 25, 2023

EuroCham Vietnam engages authorities and state-owned enterprises to drive green growth and spotlight GEF 2023

Read more

August 25, 2023

[SUPPORTED EVENT] Nestlé Vietnam – Innovation and sustainability bring competitive advantages in business

Read more

August 25, 2023

[Sector Committee spotlight] Legal Sector Committee (LSC)

Read more

August 24, 2023

EuroCham’s Tourism and Hospitality Sector Committee visits Binh Thuan to explore tourism promotion collaboration

Read more

August 24, 2023

[Event recap][Business Luncheon] Mid-year review and Forecast for the second half of the year On the Vietnamese Economy

Read more

August 24, 2023

[Event recap][Business Luncheon] Financial Trends 2023: Winning Financial Consumers During Uncertain Times

Read more

August 23, 2023

EuroCham delegation in Ben Tre province to discuss green growth opportunities

Read more

August 18, 2023

EuroCham meets with National Assembly to discuss stronger ties and cooperation

Read more

August 18, 2023

EuroCham weighs in on offshore wind at PDP8 implementation seminar

Read more

August 18, 2023

EuroCham meets with Hoa Binh Province to explore collaboration opportunities

Read more

August 18, 2023

MOIT and EuroCham map out key events to support EU-Vietnam trade

Read more

August 18, 2023

EuroCham recommends improvements to work permit and visa procedures in letter to Prime Minister on revising Decree 152

Read more

Pour une expérience optimale, veuillez tenir votre mobile à la verticale !

Platinum Partners

Gold Premium Partners

Gold Partners

Silver Partners

Premium Service Partners