Advance payment of nearly 200 billion VND for damaged enterprises in Dong Nai and Binh Duong

On June 22, for the second time this month, the Ministry of Finance coordinated with the People's Committee of Dong Nai province to organize insurance companies to advance insurance compensation for businesses that suffered damage in Dong Nai. Up to this point, insurance companies have advanced nearly 200 billion VND in compensation to businesses that suffered damage in Dong Nai and Binh Duong. This is considered an important effort of the Vietnamese Government in helping and supporting businesses to overcome damage and soon return to production and business.

Production and business activities of Johnson Wood - Dong Nai Company Limited have returned to normal.

At the insurance advance payment ceremony, Deputy Minister of Finance Tran Xuan Ha affirmed that the Vietnamese Government is determined to ensure a safe and favorable investment environment for investors, especially foreign investors. At the same time, it will continue to request agencies and insurance companies to promptly resolve compensation, helping damaged enterprises to quickly overcome difficulties, stabilize and continue to develop. Vice Chairman of Dong Nai Provincial People's Committee Tran Minh Phuc highly appreciated the urgency and responsibility of insurance companies in particular and the Ministry of Finance in general in supporting localities and damaged enterprises in the area. Dong Nai province will, together with other localities such as Binh Duong, Ha Tinh, ... commit to creating the best conditions to quickly work with financial agencies, insurance companies ... to implement professional measures to help localities and enterprises quickly overcome difficulties, bringing production and business activities back to stability and efficiency.

After nearly two months of the disturbance, production and business activities at Johnson Wood Company Limited (Tam Phuoc Industrial Park, Dong Nai) have returned to normal, although the warehouse area that was burned has not yet completed the insurance compensation procedures. Mr. Pham Xuan Nam, general manager of the company, said that in order to start production immediately, the company kept the scene intact and rented another warehouse so as not to interrupt operations. With the advance payment of 15 billion VND received from Bao Minh Corporation this time, the company feels very secure because the Vietnamese Government has kept its promise. As a Taiwanese (Chinese) company, through this incident, we can feel that the business environment in Vietnam is still safe and stable for the company to continue operating and investing.

After this advance payment, preliminary statistics show that about 150 Taiwanese enterprises, four Hong Kong (China) enterprises, three Korean enterprises, two Chinese enterprises, etc. have received a part of the compensation for damages. This is also an affirmation of the commitment and responsibility of the insurance enterprises to customers, helping enterprises overcome some of the immediate difficulties, to soon stabilize production again. In Binh Duong province, a representative of Chutex International Company said that they will use the amount of 20 billion VND to restore the sewing workshop, install new cutting tables to avoid production interruptions, ensure orders as well as jobs for workers. "We have taken advantage of the cafeteria space as the operating place for the cutting workshop. With the help of insurance and the efforts of the enterprise, I believe that in just a few weeks, we can restore 60% of capacity and after about two months, we will reach 100% capacity as before" - said a representative of Chutex enterprise.

Regarding the provision of compensation when the necessary documents are not yet complete, in accordance with the Government's request, insurance companies have made every effort to support customers, especially in important cases like this. Deputy General Director of Petrolimex Insurance Corporation (PJICO) Tran Anh Tuan said that PJICO has received notices from dozens of customers participating in insurance with initial estimated losses being very large. Therefore, PJICO immediately sent a working group to the scene to grasp the situation, organize visits to customers in the affected area and closely coordinate with the authorities to conduct the assessment of the value of damage and the cause of the loss. PJICO has determined its insurance responsibility, and together with co-insurers, has provisionally compensated nearly 30 billion VND to the damaged customers. "The problem is that insurance companies need to fulfill their commitment to promptly handle and support customers to the maximum extent within the scope of the signed insurance contract; helping businesses feel secure, quickly stabilize and continue to invest in production and business in Vietnam in accordance with the direction of the Government, the Ministry of Finance as well as in accordance with the provisions of the law" - Mr. Tran Anh Tuan said. On the side of Bao Viet Insurance, Deputy General Director Nguyen Quang Phi said that through actively conducting inspections, coordinating appraisals and settling compensation, up to now, the amount of insurance compensation advances for customers in Binh Duong and Dong Nai provinces of Bao Viet has reached tens of billions of VND. In Binh Duong, the amount of insurance Bao Viet has advanced to Esquel Company alone is up to one million USD, equivalent to 21.2 billion VND. According to the representative of Esquel Company, this amount has helped businesses quickly recover and stabilize production and business after only two weeks. For Bao Minh, up to now, the amount of advance payments has also reached tens of billions of VND.

Two hundred billion VND to support businesses that suffered losses after the recent unfortunate incident is a practical support from the financial market in general for the production and business activities of businesses, which are close and long-term customers of insurance companies. Although it has not fully met the expectations, this quickly resolved financial source is one of the important solutions to strongly promote the process of supporting damaged businesses. Over the past two months, the reality of production and business in industrial parks in Binh Duong, Dong Nai, Ha Tinh and Ho Chi Minh City shows that, with the implementation of solutions to improve the investment environment to make it safer and more convenient, along with specific solutions on simplifying administrative procedures, extending, exempting, reducing and refunding some taxes, land rents, supporting businesses, workers affected and unemployed,... The Ministry of Finance has proactively and promptly grasped the situation, actively requested local financial agencies to promptly resolve arising problems. Particularly in the insurance sector, the Ministry of Finance allows the application of a simplified compensation mechanism and goodwill compensation; at the same time, requests, guides, and mobilizes insurance companies to implement the most optimal support measures.

In tax solutions, the Ministry of Finance has extended, exempted, and reduced taxes, of which the amount of tax payment extension for the tax arrears before the time of damage is 214 billion VND, the payment deadline for the tax arrears is more than 3 trillion VND. Tax authorities at all levels also made advance tax refunds for the tax refund dossiers of damaged enterprises with the amount of 487 billion VND (including enterprises subject to pre-refund inspection). Thereby, promptly resolving capital difficulties for enterprises, with the value added tax refunded in Ho Chi Minh City being 2.3 billion VND, Ha Tinh being 483 billion VND, etc. Tax authorities also actively helped enterprises restore records, tax reports, tax invoices and documents; did not collect additional contractor tax and did not impose fines on imported goods and equipment with warranty services, exempted resource tax, reduced 60% of environmental protection fees for enterprises. In addition, customs authorities also actively support the settlement of administrative procedures, the recovery of documents, and the implementation of customs clearance for enterprises that still owe customs taxes.

According to NDDT