Government promotes growth, minister worries businesses are not big enough

The Government requires the State Bank to focus credit on production and business sectors, priority sectors, and growth drivers - Photo: NGUYEN KHANH

Continue to exempt, reduce and extend taxes and fees

Accordingly, the Government prioritizes promoting growth associated with consolidating and maintaining macroeconomic stability, controlling inflation, and ensuring major balances of the economy .

Harmoniously and effectively manage and reasonably balance growth and inflation control, striving for this year's GDP growth rate to reach about 6.5%, and controlling inflation at 4%.

To achieve the growth target, in the last 6 months of the year, the Government will implement a series of solutions such as focusing on perfecting institutions, laws, mechanisms and policies to immediately remove difficulties and obstacles, and free up resources to promote socio-economic development.

The Government requests ministries, agencies and localities, according to their functions, tasks and authority, to urgently complete and submit to the Government for promulgation decrees, circulars and guiding documents to ensure the simultaneous effectiveness of the Land Law, Housing Law, Real Estate Business Law, Price Law and Law on Credit Institutions.

At the same time, the State Bank was assigned to direct the reduction of operating costs, increase the application of information technology, and digital transformation to continue reducing lending interest rates, promote credit growth, and focus on production and business sectors, priority sectors, and economic growth drivers.

The Government also assigned the Ministry of Construction to closely monitor the situation, strengthen coordination with relevant agencies and localities to proactively find solutions to remove difficulties and obstacles, and effectively handle problems in the real estate market.

In coordination with the State Bank of Vietnam, localities should review and thoroughly and comprehensively assess the causes of the slow disbursement of the VND120,000 billion social housing credit package and urgently find solutions to remove obstacles and promote disbursement.

The Ministry of Finance urgently completes and submits to the Government for promulgation decrees in June to continue implementing exemptions, reductions, and extensions of deadlines for payment of taxes, fees, charges, and land use fees, review difficulties and obstacles, and find effective solutions to problems arising in the corporate bond market.

Assign the Ministry of Planning and Investment to promote disbursement of public investment capital, use public investment to activate and lead private investment, and promote public-private cooperation.

Focus on renewing traditional growth drivers (investment, export, consumption) and strongly promoting new growth drivers such as: green economy, digital economy, circular economy, knowledge economy and emerging fields such as chips, semiconductors, AI.

	Source: General Statistics Office
2018	7.38
2019	6.79
2020	3.82
2021	4.48
2022	5.03
2023	3.32
2024	5.66

Minister Nguyen Chi Dung worries that businesses are not big enough.

Sharing with the press at a recent discussion, Minister of Planning and Investment Nguyen Chi Dung said that domestic enterprises are facing many difficulties and are not strong enough to grow and participate deeply in the FDI supply chain.

According to him, businesses need support from the State, because currently it is not easy for Vietnamese businesses to participate more deeply in the production chain of foreign investors.

They have difficulty accessing core technology that is in the hands of large corporations or supply chains that already have relationships with each other.

Minister Nguyen Chi Dung emphasized: "It is important to have the invisible hand of the State for businesses to grow, policies must be more practical and relevant to life.

For example, the State should support those who have participated in the production process and mastered technology at FDI enterprises to start their own businesses.

These will be the people who have the technology, relationships, and can join the support chain the fastest or can support connections, purchases, and cooperation with foreign businesses that have know-how, technology, and patents, so that Vietnamese businesses can access technology. Otherwise, they will not be able to invest in products or join their chains."

Considering that investment and business procedures are still a major barrier to business operations, Minister Nguyen Chi Dung said the ministry is proposing to establish a Steering Committee for State Reform headed by the Prime Minister.

He also said that we must go to the root to solve bottlenecks in order to unblock resources, including both domestic and foreign investment sectors.

Every month, 19,500 businesses withdraw from the market.

The Ministry of Planning and Investment said that in the first 5 months of 2024, 97,300 enterprises withdrew from the market, an increase of 10.5% over the same period last year. On average, 19,500 enterprises withdrew from the market each month, while about 19,800 enterprises were newly established and returned to operation each month.

Source: https://tuoitre.vn/chinh-phu-thuc-tang-truong-bo-truong-lo-doanh-nghiep-khong-du-suc-lon-20240621104513409.htm