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Creating a foundation for targets of economic development

(VLR) Restoring and promoting business and production, boosting export, accelerating disbursement of public investment capital and mobilizing social resources, developing synchronous infrastructure structure systems, especially strategic infrastructures… are targets to be implemented as a foundation for targets of economic development.

Maintaining motive forces of growth

The Resolution on the Socio-Economic Development Plan for 2022 was approved at the 2nd meeting session. The National Assembly of the term XV determined the overall goal of 2022: to adapt safely, flexibly, and effectively control the COVID-19 epidemic, maximum protection of people’s health and lives, together with focusing on removing difficulties for production and business, and effectively supporting people and businesses; taking advantage of every opportunity to promote socio-economic recovery and development across the country, in each sector, field, and locality, and maintaining motive forces of growth in the long term; maintaining macroeconomic stability, improving the autonomy, resilience and adaptability of the economy.

The resolution also released a list of 15 key targets. In which, the growth rate of gross domestic product (GDP) is about 6% - 6.5%. GDP per capita reaches USD 3,900. The proportion of processing and manufacturing industry in GDP is about 25.5% - 25.8%. The average growth rate of the consumer price index (CPI) is about 4%. The average growth rate of social labor productivity is about 5.5%. The proportion of agricultural laborers in total social labor reaches 27.5%. The rate of trained workers reaches 67%, of which those who have degrees and certificates reach about 27% - 27.5%...

Vu Hong Thanh - Chairman of the National Assembly Economic Committee said the GDP growth target in 2022 was built on the basis of analyzing and forecasting the context of the domestic and international situation, taking into account various factors of advantages and disadvantages of 2021 on the background of low growth (about 2%), closely following the orientations, targets and tasks of the 5-year socio-economic development plan 2021 - 2025. “Setting targets about 6%- 6.5%, demonstrating the high determination from the Government, and at the same time to ensure harmony and flexibility in the implementation of the 2022 goals”, emphasized Thanh.

Pumping up “blood” to the economy

Carefully review and clearly identify key tasks and solutions in the next time epidemic prevention and control, ensuring feasibility, ease of implementation, concise presentation, and easy understanding; which emphasizes: health measures with 3 pillars: having tight, fast and narrow isolation and releasing of isolation as quickly as possible; having rapid, scientific, effective and faster testing than the spread of the disease; early treatment, remotely, right from the grassroots, ensuring people have access to the nearest medical service, as soon as possible; administrative measures, ensuring social security and meeting the travel requirements of people, workers and circulation of goods are appropriate to be applied corresponding to the epidemic level of each region and each locality in accordance with the spirit of Resolution No. 128/NQ-CP of the Government.

Excerpt from the Resolution 141/NQ-CP dated Nov 14, 2021

Prime Minister Pham Minh Chinh, in the report at the 2nd meeting session, the National Assembly of the term15th emphasized the 2022 task is to focus on effectively implementing the appropriate and feasible socio-economic development and recovery program with solutions. adaptation such as flexibly adjusting and closely coordinating fiscal, monetary and other policies to maintain macroeconomic stability, control inflation, and ensure major balances, both supporting the recovery of production and business, promoting export, domestic consumption, promoting investment, having a mechanism to mobilize more resources for socio-economic recovery and development.

Giving advice for economic recovery and development after the COVID-19 pandemic, PhD. Vu Tien Loc - Member of the National Assembly Economic Committee, Chairman of the Vietnam International Arbitration Center (VIAC), said that to promote process of restarting and recovering the economy in the next two years, besides fiscal, monetary and social security policies, a non-financial solution must also be applied, in other words, they are mechanisms on specific procedures to promote business production and investment for the whole society with specific contents as shortening risk management procedures, switching to post-inspection, limiting inspection, inspection… to be carried out mainly on the online platform and not issuing any additional policies that may increase procedures and costs for people and businesses in the current context. “There is not much space for monetary policy, so the measure to feed the economy in the current context can only be a synergy between fiscal policy and monetary policy, in which fiscal policy must plays a leading role”, said Loc.

Regarding economic recovery support packages, Nguyen Nhu So - Secretary of the Party Committee and Chairman of the Board of Directors of DABACO Vietnam Group JSC, said it is necessary to focus on solving 3 important “bottlenecks”: First, urgently and drastically disbursing support packages for businesses that have been issued. According to So, accessing the support package is still difficult, the benefit rate is still limited, so it is necessary to simplify and shorten cumbersome procedures and flexibly approve for subjects, creating favorable conditions for businesses to access this valuable source of support. Second, it is necessary to quickly issue the next support packages that are large enough and have far-reaching spillover effects. Support packages need to be selected correctly: for right objects or for improving competition abilities for enterprise owners. Third, developing and expanding the market- a vital task in economic development. “It is necessary to have a breakthrough policy to stabilize the development of the domestic market, diversify the international market, and expand the new export environment with the potential to enhance online trade investment promotion associated with number transformation; building a center to promote Vietnamese goods’ brands”, said So.

Focusing on the three key targets

According to Prime Minister Pham Minh Chinh, 2022 is an important year, creating a foundation for implementing the targets of the 5-year plan 2021 - 2025. It is forecast there will be both challenges and opportunities in both international and domestic situations; but difficulties and challenges will be more. The COVID-19 epidemic will be able to be more dangerous. Global economic growth will not be stable and will be lower than that of 2021, risks keep increasing.

The Government requested to focus on directing safe and smooth recovery of production and business activities of enterprises in conditions of the new normality; improving supply and production capacity for enterprises to meet the sharply increased demand for goods and services after switching to the motto of safe, flexible adaptation and effective control of the COVID-19 epidemic; having effective connection between production and consumption, promoting domestic consumption.

Localities need to focus on thoroughly removing congestion, supply chain disruptions, and freight transportation due to inadequacies in the implementation of regulations and procedures on COVID-19 prevention and control, compliance with regulations and guidelines from the Central Government; not creating “sub” permits, conditions that hinder the circulation of goods, not letting negative events occur, which increase costs for enterprises, cooperatives, and business households.

The Prime Minister reaffirmed the Government’s directing and operating viewpoint is both to effectively prevent and control the epidemic, restore and develop socio-economic conditions, maintain macroeconomic stability, ensure social security, restore economic growth and development. stabilize the labor market, improve people’s income and living standards; ensure the synchronization, consistency, transparency, responsibility in the direction and administration of all levels, branches and localities; at the same time, to adjust monetary and fiscal policies to be appropriate, feasible, flexible, and adaptable to the context of a prolonged epidemic; focus on implementing 3 focuses: restoring and promoting production business; boosting exports; accelerating disbursement of public investment capital and mobilize social resources, developing a synchronous infrastructure system, especially strategic infrastructure.

Tran Trinh Lam

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