Today, May 29, the National Assembly spent the whole day discussing in the hall the socio-economic development plan, state budget, thrift practice and waste prevention in 2023; results of implementing national goals on gender equality in 2023.
Delegate Ha Sy Dong speaks at the National Assembly on May 29 - Photo: TT
Speaking at the discussion session, delegate Ha Sy Dong, member of the National Assembly's Finance and Budget Committee and Permanent Vice Chairman of the Quang Tri Provincial People's Committee, expressed optimism about the data in the Government's report, GDP growth in the first quarter of 2024 reached 5.56%, the highest in the period from 2020 to present. However, the delegate suggested being cautious with the proposal of the Ministry of Planning and Investment to maintain the scenario that has been built to target economic growth for the whole year of 2024 at about 6% - 6.5%.
Delegate Ha Sy Dong pointed out the reality and challenges of the economy , especially the difficulties of enterprises, the number of enterprises withdrawing from the market increased. In the first 4 months of 2024, 86,400 enterprises withdrew from the market and on average, over 21,600 enterprises withdrew from the market in a month.
The National Assembly's Economic Committee also emphasized that this is the first time in five years that the number of businesses entering and re-entering the market in the first four months of the year was lower than the number of businesses withdrawing from the market.
The delegates suggested that the National Assembly pay special attention to the difficulties of enterprises from the perspective that if enterprises develop, the country will develop. Given the above-mentioned figures, the National Assembly should focus on discussing, analyzing, and evaluating more carefully to have timely decisions at this session to remove obstacles and support business operations, including credit issues.
Delegates said that achieving the credit growth target of 15% in 2024 is quite a challenge. From that analysis, the increase in state budget revenue stronger than expenditure has created a surplus of nearly 300 trillion VND in the first 4 months of the year, but it also means that a large amount of money from businesses and people has been withdrawn from the economy without being redistributed in time.
This has led to low capital mobilization growth in the banking system, even negative (-1.1% by the end of April), while the industry's credit growth was 1.9% compared to the beginning of the year. Therefore, delegates commented that achieving the credit growth target of 15% in 2024 is quite a challenge.
Delegate Ha Sy Dong expressed concern about the risk of inflation and pointed out that, by the end of April, the consumer price index (CPI) had increased by 4.4% compared to the same period last year and the average increase in the first 4 months was 3.93%. The main reason was the pressure from the sharp increase in world commodity prices, especially oil prices, leading to an increase in domestic gasoline and oil prices; transportation costs, house rents, and other costs also increased quite high; exchange rates and gold prices fluctuated strongly, creating a psychology of increasing commodity prices.
Inflationary pressure is present until the end of the year due to a number of factors such as: uncertain world commodity prices, potential risks of increasing when geopolitical conflicts are at a peak; minimum wage increase from July 1st causing prices to increase; combined with seasonal factors such as summer, the beginning of the new school year; risks of natural disasters, unusual storms and floods in the last months of this year, ...
The delegate also emphasized the monetary factor that causes inflation risks, when we have been pursuing an expansionary fiscal policy and a loose monetary policy for quite a long time to support economic recovery and development. When consumer demand increases again, the discovery of prolonged demand will be clearer, similar to what developed economies have experienced in the post-COVID-19 period, and the inflation factor is also looming when the gold exchange rate and real estate prices in the apartment segment in some large cities fluctuate strongly. Therefore, it is proposed that in addition to prioritizing growth promotion, inflation control should be given special attention in the coming time.
Delegate Ha Sy Dong agreed with the pilot policy of adding some specific mechanisms and policies for the development of Da Nang City and Nghe An Province.
Currently, 10 provinces are implementing the special mechanism. It is recommended that the implementation of the special mechanism in these 10 provinces be evaluated. If it is found to be correct, accurate and effective, it should be replicated for other localities to implement.
At the same time, in the above spirit, the delegates proposed to the National Assembly to apply a special mechanism for the Cam Lo - Lao Bao expressway in Quang Tri province. This is the first expressway of the East-West Economic Corridor with a length of 56 km, estimated at 13,000 billion VND, invested with a special mechanism of increasing the proportion of state capital participation to a maximum of 70% of the total project investment. In the initial phase, it is proposed that the central government support a part of the capital as "seed capital" because Quang Tri province is a locality with many difficulties.
Nguyen Ly - Thanh Tuan
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