First 4 months of 2023, economic situation

The Government needs to fully identify the achievements and shortcomings of the economy , clarify objective and subjective causes to promptly have effective solutions to overcome them.

Chairman of the National Assembly Economic Committee Vu Hong Thanh said that, in addition to the achieved results, the socio-economic situation in the first four months of 2023 also revealed continuing difficulties and challenges. (Source: VOV)

Reporting on the additional assessment of the results of the implementation of the 2022 Socio-Economic Development Plan and State Budget; the implementation situation in the first months of 2023, Chairman of the National Assembly Economic Committee Vu Hong Thanh said that the Economic Committee basically agreed with the Government 's Report. In 2022, our country's economy recovered quickly, achieving quite comprehensive and positive results in many fields with 13/15 targets reaching and exceeding the Plan.

The quality of the economy is still limited.

However, according to the Chairman of the National Assembly's Economic Committee, in addition to the achieved results, the socio-economic situation in 2022 still has limitations and shortcomings that need to be overcome. Both of the 15 unachieved targets reflect the limited quality of growth and the quality of the economy. "State budget revenue exceeded the estimate by VND 403.8 trillion (equivalent to 28.6%), reflecting that the estimate was built too low, narrowing the fiscal space and affecting the revenue estimate of the following year. This is a problem that has existed for many years but has not been overcome. It is recommended that the Government learn from experience and find solutions to overcome and improve the quality of building annual state budget revenue estimates," Mr. Vu Hong Thanh pointed out.

In the field of trade in goods, the trade surplus reached 12.4 billion USD, much higher than the number reported to the National Assembly (about 1 billion USD), partly reflecting that the economy has shown signs of declining momentum and growth rate since the fourth quarter of 2022. Currently, the financial and monetary markets are facing risks that negatively impact the safety of the system; the stock market is declining; the corporate bond market is facing difficulties; the real estate market is sluggish. The situation of cross-ownership, manipulation, and group interests in the banking sector is still very worrying.

The National Assembly's Inspection Committee requested the Government and the State Bank to assess the handling of ownership exceeding the prescribed level and cross-ownership; at the same time, it requested to clarify the responsibilities of the authorities for the occurrence of problems in the corporate bond market and banks. Difficulties in the financial market and the corporate bond market make it difficult for real estate enterprises to access capital and almost impossible to mobilize corporate bond capital, leading to the real estate market almost "freezing", directly affecting and causing a chain reaction to many sectors and fields of the economy and people's jobs.

Examining the report on the implementation of the socio-economic development plan in the first months of 2023, the National Assembly's Inspection Committee said that the Government and the Prime Minister have closely directed ministries, branches and localities to focus on implementing Resolution No. 01/NQ-CP to carry out the tasks of socio-economic development, state budget estimates and improve the business environment, enhance national competitiveness in 2023. Therefore, the macro-economy is basically stable, inflation is controlled, and major balances of the economy are ensured.

Government soon considers low GDP growth in Q1

In addition to the achieved results, the socio-economic situation in the first 4 months of 2023 also revealed continuing difficulties and challenges. Therefore, the National Assembly's Inspection Committee suggested that the Government pay more attention and evaluate a number of issues when GDP growth in the first quarter of 2023 was very low. The main drivers of growth such as exports, foreign direct investment, especially industrial production, have all decreased and are on the decline. Disbursement of public investment capital is slow, FDI attraction in the first 4 months decreased by nearly 18% compared to the same period while lending interest rates are high.

“The Economic Committee recommends that the Government fully identify the achievements and shortcomings of the economy, clarify objective and subjective causes, lessons learned, and clarify the responsibilities of relevant organizations and individuals in implementing socio-economic development tasks in order to soon have effective solutions to overcome them,” the Chairman of the National Assembly’s Economic Committee emphasized.

Forecasting that from now until the end of 2023, difficulties and challenges will outweigh opportunities and advantages, Mr. Vu Hong Thanh said that the Government needs to continue to closely monitor the economic situation in the country and the world to have timely policy solutions. In particular, focusing on consolidating and strengthening the macroeconomic foundation, controlling inflation, improving the internal capacity and autonomy of the economy on the basis of improving and maintaining the stable and safe development of the system of credit institutions, the monetary market, the real estate market, the stock market, and corporate bonds.

“The Government needs to proactively consider continuing to lower operating interest rates to support growth. Promote improvements in the investment and business environment, reform administrative procedures, strengthen decentralization along with inspection, supervision, and enhance the responsibility of leaders. Closely monitor the market and commodity prices to have timely policies and solutions to ensure supply-demand balance, appropriate management and price stabilization; ensure supply, circulation of goods and major balances of the economy, especially balances in electricity, coal, and petroleum. Urgently review and amend shortcomings in regulations on petroleum trading. Review and amend the electricity price mechanism to be consistent with the socio-economic development orientation in the coming time,” the Chairman of the National Assembly's Inspection Committee stated.

In addition, the Chairman of the National Assembly's Inspection Committee also requested the Government to soon issue appropriate policies on announcing the Covid-19 epidemic status in the country. There must be plans to respond to the complicated situation of natural disasters, plant and animal diseases, and timely support solutions for unemployed workers to ensure social security, order, safety, national defense, security, order, safety, and natural disaster prevention.

Source: https://baoquocte.vn/4-thang-dau-nam-2023-tinh-hinh-kinh-te-xa-hoi-boc-lo-nhieu-kho-khan-thach-thuc-228171.html