As of July, the Government has delayed or waived payment of taxes and fees worth VND89 trillion (US$3.8 billion) for businesses and people affected by the Covid-19 pandemic, surpassing similar figures in the 2020-2021 period.

Overview of the Government meeting. Source: VGP

Minister of Finance Ho Duc Phoc briefed on the execution of tax break policies during a Government meeting today [August 3].

According to Phoc, the much-needed support from the Government has built trust among the business community and contributed to the overall socio-economic recovery during the first seven months of 2022.

According to a Government report, the consumer price index (CPI) in July increased by 0.4% month-on-month and averaged 2.54% during the first seven months of 2022, which remained below the 4% target.

In addition, the monetary and financial markets remained stable with a credit expansion of 9.42% against late 2021 and 16.6% year-on-year.

State budget revenue during the seven months rose by 18.1% and was equivalent to 77.5% of the year’s estimate.

Industrial production was on the track to recovery as the Index of Industrial Production (IIP) during the January-July period increased by 8.8% year-on-year, marking positive performance of the industry for six months in a row.

Trade and services have also been among the highlights of the economy. Total revenue from retail sales and services in the seven months rose by 16% to over VND3,200 trillion ($137 billion); the number of international tourists to Vietnam increased  10-fold year-on-year to nearly one million; and trade turnover hit $432 billion, up 15%.

Over the past few months, more than 133,000 companies were established or returned to the market, 1.4 times more than those that suspended operation.

Prime Minister Pham Minh Chinh addresses the meeting.

Priorities for the coming months

At the meeting, Prime Minister Pham Minh Chinh noted Vietnam’s economy continues to face unprecedented challenges from growing global uncertainties, given its high level of openness and limited resilience.

“The focus, therefore, is for the Government to continue stabilizing macro-economic conditions to ensure rapid and sustainable growth,” Chinh said.

Chinh expected more efforts to enhance public health’s capability to deal with risks from the Covid-19 pandemic, including a focus on a vaccination drive.

According to Chinh, vaccination remains a strategic solution to help Vietnam fend off the pandemic.

In addition, effective implementation of the socio-economic recovery program and high disbursement of public investment funds would help Vietnam realize its development goals this year, Chinh said.

In long the term, Vietnam would continue to restructure the economy and revise the growth model toward the application of technologies, digitalization, and innovation.

The goal is to enhance economic resilience against external shocks, he continued.

In this regard, Vietnam should promote an independent and self-reliant economy while actively integrating into the global economy.

“Vietnam is committed to being a responsible and credible partner of the global community for peace, stability, cooperation, and prosperity in the region and of the world,” Chinh said.