Darkest days are over, Vietnam designs new economic development solutions

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In a report to the Prime Minister on the implementation of Government Resolution 105 on supporting businesses, cooperatives and business households amid Covid, the Ministry of Planning and Investment (MPI) has stated that the policies and solutions presented in the document are highly valued by the business community and address challenges that businesses face.

A survey conducted by the Vietnam Chamber of Commerce and Industry (VCCI) found that 91.5% of companies are aware of Resolution 105; 81% say the policies are timely; 89% say the goals set out in the resolution are reasonable; and 81.4 percent say the measures will help businesses, cooperatives and business households overcome difficulties.

Shortly after the release of Resolution 105, a series of policies and solutions were issued, creating positive motivation for production and business.

Most enterprises, cooperatives and commercial households that had to suspend their activities to comply with regulations on the prevention and control of Covid-19 have resumed their activities, while the disruption of the production chain has been resolved. The financial burden on businesses has been eased through policies of reducing the electricity bill, lowering electricity prices, and reducing corporation tax and value added tax ( VAT).

Cash flow difficulties were also mitigated through policies of debt payment rescheduling, interest forgiveness and keeping debt pools unchanged until June 30, 2022. Loan interest rates decreased by 1 .55% compared to the pre-pandemic period.

It is estimated that by the end of 2021, more than 1.1 million customers were supported, with the total amount of interest relief reaching VND 26 trillion, exceeding the target set by the resolution.

According to the Ministry of Planning and Investment, in the first quarter of 2022, the number of newly created companies was 34,590, an increase of 18.1%, while 25,588 companies resumed operations, an increase 73.6% compared to the same period last year.

This is the highest number of companies joining the market in the first quarter so far, which was 2.1 times higher than the average level in the first quarter of 2017-2021, according to MPI.

Figures show that business confidence has returned after two years of the pandemic.

Policies must be fair, implementation must be fast

The MPI pointed out that the implementation of some tasks and solutions presented in Resolution 105 remains slow, such as the proposal to reduce union dues, support to attract workers to work and support for prevention and control. of the pandemic. Meanwhile, disbursement from the credit program to help businesses pay workers fell short of target.

Administrative procedures related to the health sector remain complicated. When Covid broke out in Hanoi in late February and early March, workers and people had to queue at local medical centers to get certification on infection or recovery from Covid-19 in order to qualify for insurance policies. .

Meanwhile, many medical centers were understaffed and unable to apply information technology to screen Covid patients.

MPI believes that some localities are not showing flexibility to create favorable conditions for the resumption of production and business activities and to implement pandemic prevention and control measures in accordance with government instructions.

Emphasizing the need to learn from the shortcomings, MPI said that first and foremost, support policies must be issued at the right time and must respond to corporate action. Therefore, serious involvement of all ministries and departments, and local authorities at different levels is very important.

The MPI emphasized that the effectiveness of policy implementation depends not only on content, but also on application. Implementation delays will result in low effectiveness.

The number of Covid-19 infections has been falling since early April, but MPI said Vietnam must not be complacent, warning that Vietnam should be on high alert in case new coronavirus variants emerge. .

Political uncertainties in Ukraine are expected to have a negative impact on the Vietnamese economy. Crude oil and finished petroleum products have seen their prices increase sharply, leading to higher prices for imported raw materials and affecting businesses, especially those in the transportation sector and those using gasoline and oil as fuels . In addition, rising oil prices will push up the prices of goods, thereby putting pressure on inflation.

Luongbang

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