Need policy package to stimulate investment and production

In addition to the solutions proposed by the Government, Mr. Phan Duc Hieu, Standing Member of the National Assembly's Economic Committee, said that a policy package to stimulate investment, production - business, consumption and effective implementation within the next five years should be considered in the scenario of GDP growth of 8% and higher.

Need a policy package to stimulate investment, production - business and consumption

In addition to the solutions proposed by the Government, Mr. Phan Duc Hieu, Standing Member of the National Assembly's Economic Committee, said that a policy package to stimulate investment, production - business, consumption and effective implementation within the next five years should be considered in the scenario of GDP growth of 8% and higher.

Mr. Phan Duc Hieu, Standing Member of the Economic Committee of the National Assembly

Last weekend, the Supplementary Project on Socio-Economic Development in 2025 with a growth target of 8% or more was discussed by delegates. What is your opinion on this project?

First of all, it must be affirmed that the Project demonstrates the Government's great determination to achieve the challenging target of 8% and higher this year.

The Government's determination to submit the Project means that it is determined to concentrate its efforts to achieve this goal, not just strive for it. It also means that there will have to be more breakthrough solutions...

In the Project submitted to the National Assembly, the Government proposed many solutions, such as perfecting institutions and laws; unblocking and effectively using public investment resources; promoting private investment and processing and manufacturing industries; promoting consumption, diversifying export markets...

First, we must clearly identify that the solutions that the National Assembly and the Government have proposed to achieve the GDP growth target of 6.5-7%, striving for 7.5% are still valid. However, with the new scenario, to increase by 1%, the Government has proposed a series of additional groups of solutions. However, in my opinion, specific and clear solutions are needed, with the principle of being effective and efficient this year.

According to the experience of other countries, to promote rapid growth, growth stimulus packages are needed to stimulate investment, production - business, and consumption. In the current context of Vietnam, perhaps, the growth stimulus policy package should be considered, clarified, according to the principle of immediate implementation and immediate effect, but not creating inflationary pressure.

In your opinion, what priorities should be focused on in the policy package to stimulate growth at this time?

Firstly, increase income and increase savings for people, thereby stimulating consumption among the population. From a policy perspective, perhaps, it is necessary to speed up the progress of amending the Personal Income Tax Law in the direction of increasing the family deduction level, so that people have more savings...

Second, continue to review tax policies to support businesses. During this period, if it is not really necessary, it is not advisable to propose tax increases or increase revenues from businesses. This is an important factor to improve business competitiveness. In case tax laws must still be amended, it is necessary to set long-term goals, so the application deadline should be postponed for another 2-3 years.

Along with that, review the policies on fees, charges, and exemptions to continue to extend or have new policies. For example, the policy on exemptions and reductions on land use fees needs to continue to extend and a higher reduction can be considered because land costs are increasing.

Third, review and immediately amend regulations that increase costs for businesses. For example, with the regulation on deposit when importing scrap paper for production, businesses said that each shipment must deposit 20% - a not small amount in the context of businesses needing money for production and business, while there are almost no violations. The question is whether it is possible to change the management method towards risk management, instead of applying rigidly to each shipment for all subjects as it is now, or reduce it for businesses at the same time. If done so, there will be more capital put into production, improving the efficiency of capital use.

Similarly, tax refund procedures also need to continue to be improved, ensuring that businesses do not have to wait...

Those solutions are not new, sir?

Yes, but the challenge here is policy latency, speed and efficiency in processing.

Since 2024, institutional reform has made important strides, reflected in the National Assembly's passing of laws amending dozens of different laws and many normative resolutions to remove legal difficulties and speed up the implementation of investment projects at the end of the 8th Session, but problems still remain.

I think we need to find every way to minimize that delay, create more business opportunities faster and more evenly; localities have been empowered to dare to decide, dare to do, dare to take responsibility, quickly put policies into practice and need to quickly promote them into concrete actions, and get started right away.

The difference this year is that the high growth target is set specifically for each locality, each industry and field, instead of a common target, so the Government, localities, ministries and sectors all clearly see their responsibilities and demonstrate their determination.

What is needed now is to demonstrate it through concrete actions; there are solutions, but there must be a way to implement them quickly and effectively. Perhaps, this year, the speed of handling procedures and the speed of supporting businesses should be considered an indicator to evaluate work efficiency, in addition to the quality of implementation.

In the Project, the Government proposes that, if necessary, the state budget deficit should be adjusted to about 4-4.5% of GDP to mobilize resources for development investment; public debt, government debt, and foreign debt may reach or exceed the warning threshold (about 5% of GDP). In your opinion, will this affect macroeconomic stability?

Adjusting the target in the direction of loosening the ceiling does not mean that it is mandatory to achieve that level, but in case of necessity, carefully consider between growth and macroeconomic stability, control inflation, and ensure major balances of the economy.

This has always been the top priority in the Government's economic management over the years, even though growth, or more accurately "acceleration", is being given priority.

Source: https://baodautu.vn/can-goi-chinh-sach-kich-thich-dau-tu-san-xuat---kinh-doanh-va-tieu-dung-d246907.html