The resumption and expansion of business activities would remain a key priority for Vietnam to ensure a speedy economic recovery in 2022.

Car production at Vinfast plant. Photo: Pham Hung

The objective was revealed in the Government’s resolution No.01/NQ-CP detailing measures for the country to realize its socio-economic development targets in 2022, which include a stronger push for exports, acceleration of public funds disbursement, and mobilization of resources for the development of strategic infrastructure system.

By the end of the year, the Government expects the economy to attain a growth rate of 6-6.5%, which would result in a GDP per capita of US$3,900.

Other targets include disbursing 100% of the public investment fund and enhancing healthcare capabilities.

Head of Prime Minister Pham Minh Chinh’s Economic Advisory Council Nguyen Duc Kien noted Vietnam’s economy achieved encouraging results during the final months of 2021 despite severe Covid-19 impacts.

“The local economy is moving in the right direction by ensuring safe and flexible adaptation to the pandemic, in turn realizing the twin goals of both fighting the pandemic and boosting growth,” Kien said.

Along with specific economic goals, Kien referred to the Government’s priority of raising public awareness on Covid-19 response, along with securing Covid-19 vaccines and drugs as key instruments to contain the pandemic.

Kien noted these measures are essential for Vietnam to lay the foundation for rapid and sustainable economic development in the next period.

“Economic restructuring in association with a revision of the growth model, supporting local businesses to integrate into global supply chains and promote digital economy are the steps for Vietnam to enhance national economic competitiveness,” he added.

In the short term, the Government stressed the necessity to simultaneously implement both the Covid-19 response strategy and socio-economic recovery plan in a timely and effective manner.

Institutional breakthroughs necessary to move forward

Economist Can Van Luc noted businesses are in need of more supporting measures from the Government to mitigate Covid-19 impacts, for which a combination of fiscal and monetary support are required to cut administrative and business costs.

“While existing support of rescheduling, waiving and freezing payments of fees and taxes should be extended, the Government may consider lowering the minimum lending rates by 0.5-1 percentage points in the next two years,” Luc said.

In this regard, Chairman of the Vietnam Small and Medium-sized Enterprise Association (Vinasme) Nguyen Van Than noted there remain rooms for banks to further lower lending rates, given the high profits gained by banks last year.

“The State Bank of Vietnam should continue supervising credit institutions and banks towards lowering the lending rates for a business, especially those in fields severely hit by the pandemic,” Than said.

Another key aspect in the resolution, according to Economist Can Van Luc, is the priority placed on achieving institutional breakthroughs.

Resolution No.01 stipulates the necessity to refine the legal framework to better serve the people and business, at the same time meeting the growing demand for global integration.

“There should be a greater simplification of administrative procedures in every socio-economic aspect, ensuring transparency, publicity, and utmost convenience for the public,” the resolution suggested.

On the other hand, the Government would tighten administrative disciplines, while stepping up efforts against corruption and waste.

“Efforts for reform and sustainable development should go hand in hand for greater efficiency,” stated the resolution.

The Government requested ministries and localities to soon issue an action plan to realize resolution No.01 before January 20, 2022.

In a meeting with localities to implement socio-economic development targets in 2022, Deputy Prime Minister Le Minh Khai said it is imperative to continue improving the business environment by cutting down the number of administrative procedures, as well as time and cost for businesses and the people.