Specifically, to ensure a safe and healthy banking and financial system to support growth, the research team of the National Economics University in Hanoi proposed 4 groups of solutions, including:
One is to enhance the effectiveness of fiscal policies to promote economic growth.
With this group of solutions, the Government resolutely directs ministries, branches and localities to have specific and practical measures, enhance responsibility to proactively remove difficulties, promote disbursement of public investment capital according to the plan for 2024 and the following years, especially for large transport projects. On that basis, it creates a premise to promote bank credit growth for businesses and related industries in the construction value chain. In addition, it promotes consumption of people who are compensated for site clearance.
The Ministry of Finance shall consider continuing to review legal documents related to financial policy management, taxation, public asset management, the stock market, corporate bond issuance, commercial banks acting as life insurance agents; amend and propose timely amendments to other relevant regulations. Specific measures should be taken to accelerate the restructuring of state-owned enterprises (SOEs), supplement the charter capital of equitized state-owned commercial banks (SCBs), and accelerate the equitization of Agribank. The Ministry of Finance shall promptly submit to the Government and the National Assembly the contents of amendments and supplements to the Law on Value Added Tax (VAT), focusing on 5 contents: non-taxable subjects; tax calculation; tax rates; input VAT deduction; tax refund. Other tax laws also need to be amended and supplemented according to plan.
At the same time, the Ministry of Finance needs to promote solutions to stabilize, develop healthily, safely and effectively the two corporate bond markets and the stock market to ensure the confidence of domestic and foreign investors. Improve the quality of inspection and supervision of the implementation of laws on tax, customs, insurance, stock market, public spending, use of state budget money, and public asset management. Especially the stages of tax refund, tax exemption and reduction, tax arrears, increase transparency in insurance activities, stock transactions, and use of public land.
In addition, the Ministry of Finance objectively assesses national food reserves, reduces the size of reserves, and increases the annual turnover of rice. Continue to streamline the tax, banking, and provincial and municipal treasury systems. It is necessary to form a tax branch consisting of 3-4 districts and towns, instead of the current 2 districts. It is necessary to form a Development Bank, a regional tax department, and a regional State Treasury consisting of 3-4 provinces and cities, instead of the current situation.
Furthermore, the Ministry of Finance needs to have a specific plan and implementation for reviewing public assets in general, first of all central ministries and branches, and first implemented at the State Bank of Vietnam (SBV).
Meanwhile, relevant ministries, such as the Ministry of Construction, need to speed up the settlement of administrative procedures related to real estate projects, guide real estate enterprises to restructure segments, and reduce product prices. The Ministry of Public Security continues to advocate not criminalizing economic relations, resolutely handling violations by organizations and individuals disguised as currency traders, creating conditions (environment) to consolidate and develop the system of financial institutions providing consumer loans, contributing to preventing black credit.
Second, operate monetary policy flexibly and scientifically to remove difficulties for the economy.
Researchers from the Hanoi National Economics University believe that the State Bank of Vietnam needs to urgently continue to reduce lending rates in the economy through monetary policy management tools and management measures within its functions. Specifically: i) reduce all types of operating interest rates by 0.5%; ii) reduce credit information fees at CIC and request competent authorities to reduce deposit insurance fees.
The State Bank should add a preferential credit package from the refinancing source with low interest rates for commercial banks to lend to a number of subjects and sectors that need to be prioritized and encouraged in the economy. Flexibly grant credit limits to commercial banks with good credit growth potential. Ideally, the State Bank should immediately remove the credit limit in 2024, replacing it with mechanisms and measures to ensure credit safety.
The State Bank of Vietnam urgently deploys the software "Management information system to support management, monitoring and prevention of fraud risks in payment activities" (SIMO System), completes and promotes the exploitation of the "Online information collection system" (ODCS System) to connect, query, collect and monitor the balance of payment guarantee accounts of payment intermediary organizations (TCTGTT).
The Ministry of Finance and the State Bank of Vietnam coordinate closely in managing fiscal and monetary policies; increasing charter capital for state-owned commercial banks, managing the bond market, taxes of credit institutions, and other operations related to the safe development of the monetary market.
The State Bank of Vietnam reduces directive documents, administrative meetings and formalities. Urgently amend and supplement legal documents to increase access to bank credit capital. Extend the implementation period of Circular 02 until the end of 2024; synchronously amend Circulars regulating credit granting activities of credit institutions to be consistent with the provisions of the Law on Credit Institutions 2024. The State Bank of Vietnam promptly submits to the Government amendments to Decree No. 24/ND-CP dated April 3, 2012 and Circular No. 16/2022/TT-NHNN regulating gold trading activities in accordance with the Law on Credit Institutions 2024 and market practices.
Experts also proposed abolishing the monopoly on importing, producing and trading gold bars, ensuring connectivity between the domestic gold market and the international gold market. The State Bank of Vietnam needs to firmly manage and stabilize the exchange rate.
The State Bank needs to focus on continuing to streamline its apparatus, proactively hand over many ineffectively used public assets, have strict mechanisms for public service units, improve the effectiveness and efficiency of monetary policy management and banking operations management.
Third, promote restructuring and improve the management capacity of credit institutions.
According to the research team, the State Bank needs to accelerate the restructuring of credit institutions by 2025. Take the lead in thoroughly handling the issue of cross-ownership in joint-stock commercial banks and backyard enterprises of members of the Board of Directors of commercial banks. Require commercial banks to stop lending to businesses and backyard projects of the group. Try to handle cross-ownership and dominance in commercial banks to the maximum extent, although this is very difficult to detect. It is necessary to accelerate the equitization of Agribank, arrange for 3 commercial banks to buy back 0 VND, SCB and some other weak joint-stock commercial banks.
The State Bank of Vietnam strictly directs the increase of charter capital and safety ratios of credit institutions. There needs to be effective and synchronous measures to decisively handle bad debts.
Credit institutions need to step up the improvement of governance and risk management capacity, resolutely handle bad debts, and improve the efficiency of internal control activities. End the situation of lending concentrated on a number of enterprises and projects in the ecosystem or in the backyard of the group, which can easily undermine the safety and health of the bank.
Credit institutions cut costs to reduce lending interest rates, cut unnecessary fees to support businesses and people to recover and develop production and business. Urgently review projects and businesses to ensure timely credit supply for feasible and effective projects, share and support businesses and borrowers to overcome difficulties to continue capital turnover and debt repayment. Continue to simplify lending processes and procedures, publicize fees, interest rates, etc. to create more favorable conditions for businesses and people to access bank capital. Reduce lending interest rates for near-poor households and newly escaped poverty households to an average of only about 5%, reduce lending interest rates for policy beneficiaries at the Vietnam Bank for Social Policies, 1.5 - 2% lower than current interest rates.
Fourth, strengthen handling of violations, perfect the legal framework, and promote the application of information technology to develop a sustainable stock market.
The State Securities Commission (SSC) urgently completes the legal framework for stock market activities. Restore order to the stock market, without exceptions, without prohibited areas, bring stock market subjects into the legal framework, comply with market rules. Quickly add Article 9a "Transactions without depositing 100% of foreign institutional investors' money" after Article 9; Add Article 35a "Payment for securities purchase transactions without depositing 100% of foreign institutional investors' money" after Article 35; amend and supplement a number of other relevant provisions of Circular No. 120/2020/TT-BTC dated December 31, 2020 of the Ministry of Finance regulating the trading of listed stocks, registration of transactions and fund certificates, corporate bonds, and listed warrants on the stock exchange system.
The State Securities Commission promotes investment in information technology applications to manage the stable operation of the market, deploys and increases investment in the KRX system and monitoring, inspection, warning work... connecting the national database on population to closely monitor and inspect securities accounts fairly and transparently. In addition, the Vietnamese securities industry needs to continuously improve the trading system to safely handle various orders, including stocks.
The State Securities Commission continues to improve the quality of goods on the stock market, ensuring that all stocks traded on the market always comply with regulations and standards, eliminating stocks of enterprises operating in a non-transparent manner and fraudulently reporting financial statements. Diversifying the investor base, diversifying stocks listed on HOSE from UPCOM
The State Securities Commission, stock exchanges, and units related to the stock market focus on improving the quality of human resources. Develop appropriate training forms, focusing on international training. Update management and operation skills, stock market control, information technology level, and analysis and forecasting skills for the staff of the above agencies.
The Ministry of Finance and the State Securities Commission are completing the conditions to upgrade Vietnam's stock market to an emerging market. This is a strategy in line with Vietnam's socio-economic development strategy to transform into an upper-middle-income country by 2035 and a high-income country by 2045.
The State Securities Commission shall improve the quality, efficiency and effectiveness of its supervision, inspection and examination of the stock market; closely monitor the activities of securities companies and fund management companies and strictly handle all violations to keep the market transparent and fair.
On the stock demand side, the Government, the Ministry of Finance, and the State Securities Commission need to encourage the participation of individuals and organizations in the stock market...
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