Vigorously promote public investment and revive private investment.

In accordance with the agenda of the 7th Session of the 15th National Assembly, on May 23rd, National Assembly deputies held group discussions on the results of the implementation of the socio- economic development plan and the state budget for 2023 and 2024. Through the discussions, many opinions noted that in the first months of 2024, the macroeconomic situation was stable, inflation was controlled, and major balances were basically ensured… However, a major concern raised by many deputies was the decline in private investment and the increasing number of businesses withdrawing from the market, reflecting the significant difficulties faced by businesses in their production and operations.

Rekindle confidence and boost private investment.

According to delegate Hoang Van Cuong ( Hanoi delegation), low private investment growth; the number of businesses withdrawing from the market (86,400 businesses) is higher than the number of businesses entering and re-entering the market (81,300 businesses); and some shortcomings in administrative procedure reform causing difficulties for businesses and people are issues that need attention. Therefore, the delegate suggested that specific solutions are needed soon to facilitate business operations, so that businesses can confidently expand their operations and develop production.

The discussion in Group 1 included National Assembly delegates from the Hanoi City delegation.

Representative Nguyen Nhu So (Bac Ninh Delegation) argued that the fact that the number of newly established and reactivated businesses is lower than the number of businesses withdrawing from the market signals that businesses are gradually running out of resilience and are unable to withstand market fluctuations. Therefore, Representative Nguyen Nhu So proposed implementing a comprehensive set of solutions to revive and nurture businesses, especially private and domestic enterprises. Accordingly, the Government needs to focus on accelerating administrative reforms, improving the investment environment, and building confidence for businesses. At the same time, it should continue to flexibly implement fiscal and monetary policies, placing businesses and people at the center to provide substantive support and empower businesses. The representative noted that in the current context, it is necessary to focus on fully exploiting the potential of fiscal policy, helping businesses access it quickly, promptly, and with widespread impact.

Utilize fiscal space to support the economy.

According to statistics, 89,200 businesses withdrew from the market in 2019; 101,700 in 2020; 120,000 in 2021; 143,000 in 2022; and 172,600 in 2023. According to delegate Tran Hoang Ngan (Ho Chi Minh City delegation), these figures demonstrate that domestic businesses are facing significant difficulties, pressures, and challenges both internally and externally, while this sector accounts for a high proportion of investment and development (45-50% nationwide, and up to 68-70% in Ho Chi Minh City). Therefore, Representative Ngan argued that more policies are needed to support Vietnamese businesses, including continuing to implement flexible fiscal policies to help businesses stabilize and develop production, and create investment incentives.

According to the Government's Report on the assessment of the implementation of the socio-economic development plan and state budget in 2023; and the situation of the implementation of the socio-economic development plan and state budget in the first months of 2024, one of the main tasks and solutions in the coming period is to continue implementing policies on interest rate exemption and reduction, debt deferral, postponement, and restructuring, and tax, fee, and land rent exemption, reduction, and extension to alleviate difficulties for production and business; and to continue removing difficulties and creating favorable conditions for businesses and people to access credit. Along with that, it is necessary to decisively accelerate the disbursement of public investment capital, using public investment to activate and lead private investment, and strengthen public-private partnerships...

Discussing the same issue, delegate Tran Anh Tuan (Ho Chi Minh City delegation) argued that the increase in newly established and reactivated businesses, while still lower than the number of dissolved or bankrupt businesses, coupled with the decrease in initial capital per business, are concerning issues. Furthermore, while private investment plays a decisive role in overall economic growth, investment has been weak in recent times, and public investment has failed to attract and guide private investment.

To ensure the continued sustainable growth and further development of the domestic economy in the coming period, delegate Tran Anh Tuan suggested that, given the remaining fiscal policy space, fiscal resources and support packages through taxes and fees should be utilized to support the economy, stimulate production, encourage business establishment, and attract social resources for investment. He also stated that further research is needed to simplify administrative procedures and address shortcomings that slow down investment processes, thereby promoting faster and more efficient public investment.

Sharing this view, delegate Tran Hoang Ngan argued that the Government and ministries, sectors, and localities need to accelerate the disbursement of public investment capital, especially for transportation infrastructure projects and key projects. Because if the disbursement progress of projects and works meets the plan, a synchronized infrastructure system will attract investors, and then public investment will also effectively play its role in leading, spreading, and attracting private investment.

Source: https://thoibaonganhang.vn/quyet-liet-thuc-day-dau-tu-cong-vuc-day-dau-tu-tu-nhan-151976.html