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Gov’t to stay versatile amid challenges: PM Chinh
Son Nguyen 19:44, 2022/09/06
Some VND55.5 trillion (US$2.35 billion) worth of financial aid has been allocated to boost the country’s socio-economic growth so far this year.

The Government, ministries and local authorities must stay alert amid the complicated happenings of both international and domestic conditions to keep boosting the country’s socio-economic development, Prime Minister said at a monthly Government meeting on Tuesday.

 Prime Minister Pham Minh Chinh at the meeting. Source: VGP

Chinh urged local authorities to enhance their supervision and quality of the decision-making process, secure social order and healthcare services and increase vaccination coverage in their respective jurisdiction, and focus on disciplinary measures against offending administrative officials.

"Ministries and local authorities have to strictly monitor the development of the diseases, increase vaccination coverage among people, and resolve the shortage of medicines and medical equipment," Chinh said.

The macroeconomy, inflation, and major balances must be kept under control, while fiscal and monetary policies should be in line with other macroeconomic policies, and it is necessary to figure out various scenarios relating to the trend of growth, inflation and major balances, he said.

The Government must enhance the implementation of the socio-economic recovery and development program, speed up the disbursement of public spending, and improve the execution of the three national target programs, he urged.

Additionally, the ministries must cut all unnecessary administrative procedures and re-allocate the funding for other projects from inefficient ones, thus assuring all potential projects are on schedule, the PM said.

 A convenient store staff makes arrangements on shelves. Prime Minister Pham Minh Chinh on Tuesday urges the Government to keep a close watch on macroeconomic conditions to sustain the country’s growth. Photo: The Hanoi Times
The economy must be restructured towards reforming growth model, digital transformation, digital economy, green growth, circular economy and innovation as Vietnam is among the countries with the potential to develop renewable energies," said Chinh, adding that ministries have to be more creative and find assistance from international partners for this issue.

Vice State President Vo Thi Anh Xuan said that the country has successfully attained dual goals of pandemic and disaster prevention and socio-economic development, she said, adding the Government succeeds in creating new momentum for growth and has quick responses to develop policies and meet the needs of development.

The Vice State President advised ministries to take a closer look into social issues and the needs of people and enterprises while compiling their reports and to pay more attention to the development of human resources so that the country can attain sustainable development and bring more benefits to its people.

Financial aid worth $2.35 billion disbursed

According to Minister of Planning and Investment Nguyen Chi Dung, some VND55.5 trillion (US$2.35 billion) worth of financial aid has been allocated to help boost the country’s socio-economic growth so far this year, 

The figure includes nearly VND35 trillion worth of deductions in added value tax and environmental protection tax on jet fuel purchases (as of the end of August 26), VND10 trillion worth of preferential loans disbursed through the Vietnam Bank for Social Policies, and VND7.4 trillion worth of extension of due dates for payment of land lease fees and taxes (as of the end of June 2022).

 Minister of Planning and Investment Nguyen Chi Dung speaks during the Government’s meeting on September 6.

According to a report from the Ministry of Finance presented at the meeting, the disbursement is expected to reach more than VND212.2 trillion, fulfilling 39.15% of the Government’s plan.

The eight-month consumer price index (CPI) increases by 2.58%, almost unchanged from the 2018-2021 rates. Prices of food and construction materials have slid, and the supply of gas and oil has been well-monitored to remain sufficient.

The total value of imports and exports in August is estimated to gain 17.3% on-year. Vietnam’s trade surplus in August is estimated at $2.42 billion and the eight-month figure is estimated at $3.96 billion.

The post-pandemic period has also seen some improvements in domestic consumption as the total sale volume of goods and services in eight months is up 19.3% on-year. The tourism sector continues soaring as the total number of foreign visitors in eight months reaches 1.4 million, up 12.7 times in comparison with the figure in 2021.

The number of licensed businesses and re-activated businesses in eight months is nearly 150,000, up nearly a third from the previous year. The number indicates local enterprises are betting on the country’s economic stability and recovery.

Difficulties and risks

There are still challenges that the Government has to address, Minister Dung warned, adding the international risks include droughts in China and Europe, China’s monetary easing policy, and the geopolitical tensions in some regions.

"Those issues have presented some difficulties for the Government to keep Vietnam’s macroeconomics and inflation under control," he said.

The prices of key goods and commodities such as food, oil, steel and fertilizer have shown signs of decline but it is hard to read their future trends, while the global supply chain continues to suffer from disruption putting pressure on inflation and domestic market prices, Dung added.

Though the demand for financing is high, many businesses have found it difficult to approach bank loans as the banks have to take strict measures to assure the lending will not harm the entire financial sector and lead to inflation, the minister added.

Exports have been hit as overseas markets shrink after several developed economies are at the risk of recession, leading to the decline of exports to those markets and higher inventory, he said.

Other risks include the volatility of the bond, stock and real estate markets, the complicated development of the Covid-19 pandemic, and the shortage of medicines, tools and devices at hospitals and medical centers, Dung said.

“If the Government fails to come up with some proper plans, it can dampen the country’s socio-economic recovery and have serial effects on the sectors, businesses and people,” he said.

TAG: Prime minister Pham Minh Chinh economic growth
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