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Removing the "bottleneck" of personal income tax, unblocking the domestic market's momentum

National Assembly deputies pointed out bottlenecks and recommended that "no further delay" should be made in adjusting personal income tax in the direction of increasing family deductions to stimulate consumption and support people.

Báo Bình PhướcBáo Bình Phước17/06/2025

National Assembly deputies acknowledged the proud results of the socio-economic situation. (Photo: CTV/Vietnam+)
National Assembly deputies acknowledged the proud results of the socio -economic situation. (Photo: CTV/Vietnam+)

During the discussion session on June 17 at the parliament, National Assembly deputies acknowledged the proud results of the socio-economic situation and proposed many fundamental solutions with long-term strategies.

Need to adjust personal income tax soon

Expressing his high agreement with the Audit Report of the National Assembly's Economic and Financial Committee, Delegate Tran Hoang Ngan ( Ho Chi Minh City delegation) emphasized that he was very pleased with the socio-economic results achieved in 2024 and the first 5 months of 2025. Despite the unfavorable international context, Vietnam still achieved and exceeded 15/15 socio-economic targets, our macro-economy continued to be stable. In particular, inflation was controlled below 4% for 10 consecutive years. Accordingly, the major balances of the economy were ensured while the trade surplus was continuously recorded from 2016 to present.

Delegate Tran Hoang Ngan also pointed out significant progress in the country's position with per capita income approaching the upper middle income standard, especially the global innovation index has increased by 2 levels, the brand index has increased by one level and most recently the country's happiness index has increased by 8 levels, ranking 46/143 (if since 2021, Vietnam is ranked 77, this shows great success).

Looking back on the nearly 40 years of renovation, Delegate Tran Hoang Ngan acknowledged the country's continuous growth, but also noted external shocks. Accordingly, he recommended three main groups of solutions, the first being the need to persevere in three strategic breakthroughs in institutions, infrastructure and human resources. Second, restructuring the three traditional driving forces: export, investment and consumption. Regarding consumption in particular, he said that more attention should be paid to domestic consumption, especially the country's market of 100 million people.

“Recently, consumption activities in society have tended to slow down. Therefore, I propose that the Government soon submit to the National Assembly a policy to increase aggregate demand. In particular, it is necessary to soon adjust personal income tax in the direction of increasing family deductions and I think this issue cannot be delayed any longer," said Delegate Tran Hoang Ngan.

Third, Mr. Ngan said that it is necessary to unleash three new driving forces: science and technology, innovation, digital transformation, and at the same time promote the driving force from the new development space with 34 new provincial administrative units. To minimize external impacts, Vietnam maximizes its national potential and advantages, including high-tech agriculture, marine economy, tourism, and high-quality service industries such as finance, banking, and healthcare.

Meanwhile, Delegate Nguyen Hoang Bao Tran (Binh Duong) was particularly concerned about the social consequences of the process of merging administrative units and applying science and technology, and digital transformation.

"A large number of workers and civil servants are gradually being replaced by robotic technology, artificial intelligence and streamlined apparatus. Without fundamental, humane and sustainable solutions, we will face very serious social consequences and risk becoming the cause of increasing social inequality in the future," said Delegate Bao Tran.

To solve this problem, Delegate Bao Tran proposed to consider early reform to increase salaries for officials and civil servants who remain after the merger. In addition, policies need to be revised and immediately replaced with personal income tax, which is no longer appropriate; "building a national job transition fund to support workers eliminated due to technology"; and "applying appropriate technology tax policies to reallocate resources for social security and retraining."

Need to change drastically from management thinking to creation

Expressing agreement with the reports of the Government and the National Assembly's Economic and Financial Committee, Delegate Siu Huong (Gia Lai delegation) proposed specific recommendations related to the work of ethnic minority cadres. Specifically, it is necessary to soon have a document amending or replacing Decision 402 (dated March 14, 2016) of the Prime Minister on approving the Project on developing the team of cadres, civil servants and public employees of ethnic minorities in the new period.

Accordingly, Delegate Siu Huong analyzed the inadequacy of this Decision in the context of the local government structure changing to only 2 levels (province and commune) as well as the staff structure requirements due to the merger of provinces. She recommended adding criteria to evaluate the ratio of ethnic minority staff to the total number of leaders and managers at each level.

Second, Delegate Siu Huong emphasized the need for a long-term strategy related to the policy of training and creating sources of ethnic minority cadres. She said that the Party and the State have had many policies of concern, but in reality, the proportion of ethnic minority cadres, civil servants and public employees in the government apparatus, especially at the central and provincial levels, is still very limited. Therefore, she suggested that the Government should develop a comprehensive project, linking the work of ethnic minority cadres from planning, creating sources to training, fostering, recruiting, using and appointing in the long term.

With a longer-term vision, Delegate Thach Phuoc Binh (Tra Vinh delegation) proposed promoting a systematic and synchronous economic law reform program and the National Assembly promulgating a framework law on a socialist-oriented market economy. Specifically, the Government promulgates a national strategy on vocational skills development until 2035 and strongly transforms the model of teaching what one has to training according to market demands. Policies effectively exploit new growth drivers, including green transformation, circular economy, innovation with specific incentive policies while building a legal framework for sandboxes and innovation.

Regarding regional development and regional linkage, Delegate Thach Phuoc Binh said that it is necessary to establish a Regional Development Fund and a Coordination Board for key economic zones along with a mechanism to test the model of regional government or special administrative zones. In particular, he said that it is necessary to modernize the work of statistics, forecasting and macro-policy management. Specifically, it is necessary to build a National Socio-Economic Data Center and upgrade the coordinating role of the National Monetary and Financial Council to a Macroeconomic Policy Coordination Council.

In addition to the bright spots, Delegate Nguyen Ngoc Son (Hai Duong delegation) pointed out the challenges that the economy is facing. Specifically, the growth structure still depends on traditional driving forces. Meanwhile, new driving forces such as digital economy, high technology, green economy have not yet fully promoted their effectiveness. Delegate Son pointed out that the efficiency of public investment is still low with slow disbursement rate, domestic enterprises are still weak, have difficulty accessing credit, foreign direct investment (FDI) enterprises have not created high added value, and are loosely linked with domestic enterprises. In addition, the quality of human resources is still a bottleneck, while some policies have not kept up with reality and administrative procedures are still overlapping.

From there, Mr. Son suggested that the Government needs to take specific and detailed actions and continue to make institutional breakthroughs, innovate policy-making thinking, restructure fiscal and monetary policies, to improve the efficiency of public investment, remove barriers for private enterprises and have a strategy to attract FDI that brings higher added value.

Deeply concerned about sustainable development, Delegate Nguyen Quang Huan (Binh Duong delegation) said that if environmental issues continue to affect people's health, it will directly impact the growth rate to slow down. Specifically, he cited a World Bank report warning about the cost (about 12-18 million USD per day by 2030 and about 6% of GDP by 2035) of pollution treatment if no early action is taken. Therefore, Mr. Huan suggested that focusing on the environment, preventing river pollution, widespread waste, and controlling the rate of cancer related to the environment needs to be further strengthened.

Delegate Huan also emphasized that social issues need to be further enhanced, such as the living conditions of ethnic minorities, access to clean water and the quality of culture, education and health care. He also called for a strong shift in management thinking towards creating and truly managing resources.

"The National Assembly should consider launching a competition movement '100 things to do immediately' to celebrate the 14th National Party Congress, to truly abandon the mindset of banning if you can't manage it, and shift from bureaucratic management to administrative and civil servant thinking," said Mr. Huan.

Source: https://baobinhphuoc.com.vn/news/4/174118/go-nut-that-thue-thu-nhap-ca-nhan-khoi-thong-dong-luc-thi-truong-noi-dia


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