Minister and Chairman of the Government Office Tran Van Son: The socio-economic situation in October and the first 10 months of 2023 continued to show a positive recovery trend. Photo: VGP/Nhat Bac
Socio-economic situation in October and 10 months of 2023 continues positive recovery trend
Speaking at the press conference, Minister and Chairman of the Government Office Tran Van Son said: Today, November 4, Prime Minister Pham Minh Chinh chaired the regular Government meeting in October 2023, a month with many important economic, political and social events, especially the 8th Central Conference, 6th Session, 15th National Assembly.
At the meeting, the Government focused on discussing: the socio-economic situation in October and the first 10 months of 2023 and a number of other important contents, proposing key and breakthrough solutions in the coming time with the theme " Creating substantive changes, promoting administrative procedure reform, removing difficulties for production and business, unblocking resources, promoting growth drivers " ; and in the spirit of " higher determination, greater efforts, more efforts, focusing on key points, effectively solving tasks to continuously improve the material and spiritual life of the people " .
In the context of the international and regional situation continuing to develop rapidly, complicatedly and unpredictably; difficulties and challenges outweigh opportunities and advantages; and increasing risk factors, the Government and the Prime Minister have directed the drastic implementation of the Resolutions and Conclusions of the Central Committee, the Politburo, the National Assembly and the Government, focusing on preparing the best contents and tasks to serve the 8th Central Conference and the 6th Session of the National Assembly; building and perfecting institutions and laws; completing 6 regional Coordination Councils; continuing to deploy the activities of 26 working groups of the Government; actively removing difficulties and obstacles, supporting people and businesses to recover and develop production and business; promptly and effectively handling a large volume of regular and sudden tasks and work arising, especially urgent issues; gradually resolving long-standing backlog issues; Practically and effectively implement many foreign affairs and international integration activities, sign many international treaties and agreements...
Discussing at the meeting, the Government members unanimously agreed that: in the context of many difficulties and challenges, under the leadership of the Party Central Committee, directly and regularly led by the Politburo and the Secretariat, headed by General Secretary Nguyen Phu Trong, with the participation of the entire political system, the close accompaniment and coordination of the National Assembly, the drastic, synchronous and flexible direction and management of the Government, the consensus and active participation of the business community and people, and the support of international friends, we have focused on implementing the tasks and solutions set out in a focused and key manner. The socio-economic situation in October and the first 10 months continued to show a positive recovery trend, with each month being better than the previous month, each quarter being higher than the previous quarter, and achieving important results in many areas.
Notably: Macroeconomic stability continues to be maintained; inflation is controlled; growth is promoted; major balances of the economy are ensured; public debt, government debt, national foreign debt, and state budget deficit are well controlled.
Domestic inflation was controlled in the context of high global inflation. The average consumer price index (CPI) in the first 10 months increased by 3.2%, much lower than the set target (about 4.5%), creating room for monetary and fiscal policies to promote growth and adjust prices of state-managed goods.
The currency market and exchange rate are basically stable; interest rates have decreased by about 2% compared to the end of 2022.
Energy and food security are ensured (7.1 million tons of rice were exported, with a turnover of nearly 4 billion USD, up 17% in volume and 34.9% in value over the same period). The labor market recovered, and the balance between labor supply and demand was ensured.
State budget revenue in 10 months reached nearly 1.4 million billion VND, equal to 86.3% of the estimate, while tax, fee, and land rent exemption, reduction, and extension reached 163.8 trillion VND (of which, exemption and reduction was about 57.3 trillion VND).
Imports and exports continued to increase and were a bright spot. Compared to the same period last year, exports in October increased by 5.9% and imports by 5.2%; in which, exports and imports of the domestic economic sector increased sharply (exports and imports in October of the domestic economic sector increased by 15.1% and 8.5% respectively compared to the same period last year). In total, the trade surplus in the first 10 months was 24.61 billion USD (the same period last year had a trade surplus of 9.56 billion USD).
Agriculture has developed steadily and is a bright spot; agricultural exports in 10 months reached 43.08 billion USD; of which fruits and vegetables reached over 4.9 billion USD, up 78.9%. Industrial production continued to recover positively in the context of declining global demand, and chains also suffered local disruptions; the industrial production index in October 2023 is estimated to increase by 5.5% compared to September and by 4.1% over the same period; the overall increase in 10 months was 0.5%.
Trade and service activities were vibrant, maintaining a fairly high growth rate; total retail sales of goods and consumer service revenue in 10 months increased by 9.4% over the same period. International visitors to Vietnam in 10 months reached nearly 10 million, 4.2 times higher than the same period, far exceeding the target of 8 million visitors in 2023.
Development investment continued to achieve positive results, being an important driving force for economic growth. Disbursement of public investment capital in the first 10 months reached nearly 402 trillion VND, equal to 56.74% of the plan, up 5.5% over the same period, an absolute increase of about 104 trillion VND.
Total registered FDI capital reached over 25.76 billion USD, up 14.7% over the same period; total realized FDI capital continued to increase, reaching 18 billion USD in 10 months, up 2.4%. Many large, high-tech companies and corporations came to Vietnam and committed to invest. In October, a contract was signed to implement the Block B Gas-Power Project Chain with an investment scale of 12 billion USD.
Business development continues to be positive. In the first 10 months, 183,600 enterprises entered and re-entered the market (higher than the number of enterprises withdrawing from the market, which was 146,600).
Administrative procedures are focused on being cut, simplified, and decentralized; national digital transformation, Project 06, and online public service provision are promoted.
Cultural and social fields are focused on; social security is ensured; epidemics are controlled (in October we moved COVID-19 from group A to group B); people's lives are improved. Many celebrations and political and social events are organized practically and successfully.
The political and social situation is stable; national defense and security are maintained; social order and safety are basically guaranteed. The work of preventing corruption and negativity continues to be strengthened.
Foreign affairs, international integration, and economic diplomacy are promoted as bright spots and foundations for better attracting FDI, especially for technology investors.
Many international organizations continue to positively assess Vietnam's development prospects.
Regular Government press conference in October 2023. Photo: VGP/Nhat Bac
Strive to achieve the highest targets in 2023 plan
Regarding the direction and tasks for the coming time , after analyzing the international, regional and domestic situations, the Prime Minister clearly stated the requirements: Continue to maintain the general goals set out. That is to stabilize the macro economy, control inflation, promote growth, ensure major balances; well control public debt, government debt, and budget deficit; focus on social security, ensure people's lives; maintain political and social stability; further promote the work of preventing and combating corruption and negativity; consolidate and strengthen national defense, security, and foreign affairs...
The guiding viewpoint is: taking advantage of opportunities and advantages, promoting strengths and achievements, overcoming shortcomings and limitations, based on lessons learned, continuing to strive with high determination, steadfastness and perseverance towards the set goals; focusing on grasping the situation, responding to policies promptly; directing and operating proactively, flexibly and effectively; striving to achieve the highest targets of the 2023 plan, creating favorable momentum for 2024.
Regarding the main tasks and solutions, the Prime Minister requested ministries, branches and localities to: Actively and effectively implement the Resolutions and Conclusions of the 8th Central Conference; focus on serving the National Assembly session well, in which closely coordinate with the National Assembly agencies to absorb and complete the draft Laws and Resolutions of the National Assembly on important and urgent issues.
Continue to implement a proactive, flexible, timely, effective monetary policy, in close, synchronous, and harmonious coordination with a reasonable, focused, and key expansionary fiscal policy and other policies.
Continue to prioritize growth. Increase access to and prioritize credit for production, business, and growth drivers (investment, consumption, export). Proactively implement market and price stabilization programs, especially at the end of the year and during the Lunar New Year.
Promote manufacturing and processing industry, key industries; accelerate the progress of large-scale, high-tech projects with strong spillover effects; proactively implement solutions to ensure energy security (electricity, gasoline). Effectively implement the 1 million hectare high-quality rice project; focus on removing the EU yellow card. Strengthen tourism promotion and attraction.
Review and minimize administrative procedures; promote decentralization and delegation of power; reorganize the apparatus, streamline staff; strengthen the fight against corruption, negativity and waste.
Focus on removing difficulties for production and business; unblock, mobilize and effectively use resources. Effectively implement preferential policies on interest rate exemption and reduction, debt restructuring; exemption, reduction and extension of taxes, fees, charges, land rents, etc.; continue to review and propose new preferential policies (including continuing to reduce VAT to remove difficulties for production and business).
Accelerate disbursement of public investment capital, Recovery Program, 03 National Target Programs (striving to disburse at least 95% of the capital plan in 2023). Speed up planning approval. Actively recover and develop corporate bond and real estate markets.
Focus on cultural and social fields; do a good job of social security, ensure people's lives, especially during Tet in the spirit of "leaving no one behind". Prepare essential goods well, especially at the end of the year and during Tet.
Solve the problem of medicine, equipment, medical supplies, some projects and hospitals that have lasted for many years; the local shortage of teachers, limitations and inadequacies in general education programs and textbooks.
Be proactive and ready to carry out rescue work, promptly support people to overcome the consequences of natural disasters, storms, floods, landslides, riverbank and coastal erosion, and stabilize their lives.
Strengthen national defense and security; maintain social order and safety; promote foreign affairs and enhance information and propaganda work to create social consensus.
From the above-mentioned groups of tasks and solutions, Prime Minister Pham Minh Chinh has assigned specific tasks to ministries, branches and localities. He requested that the Ministers, Heads of branches, Chairmen of People's Committees of provinces and cities, according to their functions, tasks and powers, focus on leadership and direction with higher determination, greater efforts, further promote the role of the leader, and strive to achieve the highest results in the assigned goals and tasks.
Deputy Minister of Finance Nguyen Duc Chi: Market size and liquidity have grown. Photo: VGP/Nhat Bac
Market size and liquidity have grown
Reporter Ky Thanh, Investment Newspaper: I would like to ask Deputy Minister Nguyen Duc Chi to share with the Ministry of Finance about the current situation of the corporate bond market and whether the launch of a private bond trading floor will help the market improve or not?
Deputy Minister of Finance Nguyen Duc Chi: Regarding the first content that journalist Ky Thanh and Investment Newspaper raised, I would like to share this, about the bond market and the operation of the individual bond market concentrated at the Hanoi Stock Exchange.
Regarding the situation of the private bond market in the first 10 months of the year, by the end of October, we have compiled that 70 enterprises have tested the issuance of private corporate bonds with a volume of 180.4 trillion VND.
In addition, enterprises have previously issued and repurchased 190.7 trillion VND before maturity, and a very noteworthy point is that since Decree 08/2023/ND-CP of the Government took effect on March 5, 2023, until the end of October, the issuance volume was 179.5 trillion VND. This is issuance and repurchase, after Decree 08/2023/ND-CP was issued and by the end of October, the issuance volume was the same.
Another point to share is that in the primary market, that is, when a business issues, institutional investors account for over 95% and individual investors only account for about 5% who participate in buying privately issued corporate bonds.
The maturity volume from now until the end of the year is 61.6 trillion VND for bonds that businesses have issued.
Regarding the situation of trading individual corporate bonds on the centralized trading system, after more than 3 months of operation, the Hanoi Stock Exchange has coordinated with members as well as businesses to safely and smoothly operate this trading system.
The market size and liquidity have grown. As of October 31, the market has received and put into trading 451 bond codes of 114 enterprises with a registered trading value of about VND 336,768 billion.
Regarding transaction scale, by the end of the trading session on October 31, 2023, the total transaction value of the whole market reached VND 49,392 billion, with an average transaction value of VND 676.6 billion/session.
In October alone, the total market value reached 29,292 billion VND, with an average transaction value of about 1,331 billion VND/session.
By the end of October, there were only 451 bond codes of 114 enterprises registered to trade on this market and there are also many bond codes of enterprises that have issued but have not registered.
The Ministry of Finance has directed the State Securities Commission, the Vietnam Stock Exchange and the Hanoi Stock Exchange to conduct supervision and inspection and will strictly handle according to the law if enterprises have issued bonds without registering for trading on this system according to the law.
Deputy Minister of Education and Training Hoang Minh Son: There has been no case of reference books brought into schools containing inappropriate content. Photo: VGP/Nhat Bac
There has been no case of reference books brought into schools containing inappropriate content.
Reporter Hoang Le, VOV Online Newspaper: Deputy Minister Hoang Minh Son, please tell us how the management of reference books and children's books is being implemented to avoid inappropriate content. Recently, images of children's books with data descriptions in textbooks have been circulating on social networks, causing negative public opinion. This has forced the Ministry of Education and Training to request relevant agencies to intervene to clarify this information. So what measures has the Ministry taken to manage this issue?
Deputy Minister of Education and Training Hoang Minh Son: Regarding textbooks, the Ministry of Education and Training has very strict regulations from standards, procedures to appraisal and selection for use. For reference books and books for children, the scope is very wide.
There are two issues here. One is, regarding publishing and circulation, reference books and children's books are published by publishers, and the Ministry of Information and Communications is responsible for state management. Regarding publishing, publishers are responsible for the content.
Second, the Ministry of Education and Training recognizes that it is necessary to have regulations to strengthen the state's management responsibility in using these books in schools, general schools, preschools, and continuing education schools to limit inappropriate content in reference books and books for children in school education.
Since 2014, the Ministry of Education and Training has issued a Circular on the use and management of reference books in schools. In which, it clearly stipulates the conditions, requirements, and responsibilities of teachers, schools, the Department of Education and Training, and the Department of Education and Training in managing the use of content that, if any, is brought into the school, brought into the school library, as well as books that, if parents want to use, the school will advise them to use.
The standards and conditions are clearly stated here, especially the responsibilities of the school and the Department of Education and Training in inspection and examination. If there are any inappropriate contents, the use of those books will be stopped.
We have not found any cases of reference books brought into schools containing inappropriate content.
Recently, there have been some phenomena, and this is not the first time, some social media accounts, newspapers… have taken pictures of parts of books somewhere on the market, either intentionally or unintentionally, to make people misunderstand that this is the content of textbooks. This is very dangerous, and has a very negative impact on the entire education system.
We suggest that you, reporters, pay attention to this. There is a lot of news about the education sector, but it needs to be clearly verified, clearly identified where it is, and whose responsibility it is.
We would like to inform you very clearly that the responsibility related to circulation and publication belongs to the Ministry of Information and Communications. As for the Ministry of Education and Training, according to its authority, it has issued a circular regulating this issue.
Thanh Buoi bus company case: Is there tax evasion of hundreds of billions of dong, lax management?
Reporter Mai Thu, Thanh Nien Newspaper: Firstly, many newspapers have written articles related to the illegal bus and bus station of Thanh Buoi in recent times. Recently, Thanh Buoi caused an accident that killed 5 people and injured many others, the driver had his license revoked, public opinion has raised the question of why Thanh Buoi bus company's violations were so blatant and brazen for so many years without being handled?
Is it true that management agencies and state management agencies such as the Department of Transport of Ho Chi Minh City and Lam Dong have loosened management to allow this bus company to blatantly violate the law?
Second, the press has investigated and reported on Thanh Buoi bus company's tax evasion. So has Thanh Buoi evaded hundreds of billions of dong in taxes over the years? Who is responsible for this issue and can the tax losses be recovered?
Third, the Prime Minister issued Official Dispatch No. 902 requesting clarification of the responsibilities of Thanh Buoi bus company and related units to prevent similar accidents from happening. So how have the Ministry of Public Security and the Ministry of Transport implemented Official Dispatch 902 so far?
Deputy Minister Nguyen Duc Chi: The Ministry of Finance has directed the General Department of Taxation and relevant tax departments to closely coordinate with the police to clarify and determine the responsibilities of Thanh Buoi Company as well as related subjects in tax evasion. Photo: VGP/Nhat Bac
Thanh Buoi Company's tax records have been transferred to the police for investigation.
Deputy Minister of Finance Nguyen Duc Chi: Thanh Buoi Company, the main business line is passenger and cargo transportation, operating on main routes from Ho Chi Minh City to Lam Dong and vice versa, from Lam Dong to Can Tho and vice versa. This company has two branches in Da Lat city, Lam Dong province and Thanh Buoi branch in Phan Thiet city, Binh Thuan province.
At the Ho Chi Minh City Tax Department, Thanh Buoi Company declares and pays taxes using the deduction method at the Ho Chi Minh City tax authority, declares VAT and personal income tax in Lam Dong for the operations of the Lam Dong branch. The company will register to use electronic invoices from July 15, 2022.
Recently, through synthesis and supervision, the company has had many activities to declare, supplement and adjust 24 tax declaration dossiers of many value added tax, corporate income tax and personal income tax declaration periods at the Ho Chi Minh City Tax Department for the years 2019, 2020, 2021 and 2022.
After the additional declaration, the company has incurred taxes to be paid and the company has paid the arising taxes, specifically: Value added tax in 2019 increased by 1 billion 991 million VND (rounded), in 2022 increased to 2 billion 763 million VND (rounded). Income tax in 2019 increased by 8 billion 476 million and in 2020 increased by 3 billion 607 million VND, in 2022 increased by 267 million VND (rounded). From October 10, 2023 to October 31, 2023, the company paid 21 billion 457 million VND to the State budget at the Ho Chi Minh City Tax Department.
Regarding tax management of the company, the tax departments have also conducted 7 inspections and examinations. Of which, the Ho Chi Minh City Tax Department has conducted 4 inspections and the Lam Dong Provincial Tax Department has conducted 3 inspections for the joint ventures from 2013 to 2021. Through inspections and examinations, it was recommended to increase the revenue and payment to the budget by 1 billion 437 million VND due to the declaration behavior leading to a lack of tax payable.
Regarding the issue of whether or not the company violated the law on tax and tax management : Through the implementation of management work, the Ho Chi Minh City Tax Department also discovered that Thanh Buoi Company had signs of paying many employees with larger amounts than the income from salaries and wages that the enterprise had declared and settled personal income tax with the tax authority.
This behavior leads to tax evasion, reducing the tax that should have been paid in reality. Based on relevant regulations, the Ho Chi Minh City Tax Department has also transferred these files to the Ho Chi Minh City Police Department for investigation in accordance with the law.
The Ministry of Finance has also directed the General Department of Taxation and relevant tax departments to closely coordinate with the police to clarify and determine the responsibility of Thanh Buoi Company as well as related subjects in tax evasion.
Deputy Minister Nguyen Danh Huy: Any individual or organization that violates will be punished. Photo: VGP/Nhat Bac
Deal with any individual or organization that violates
Deputy Minister of Transport Nguyen Danh Huy: Regarding the content related to the implementation of the Prime Minister's Official Dispatch No. 902/CD-TTg, how is it? The Ministry of Transport would like to answer as follows: The traffic accident on National Highway 20 is very regrettable and extremely serious. Immediately after the incident, the Prime Minister issued Official Dispatch 902, which focuses on 2 issues.
The first is to overcome the consequences and direct localities to overcome the consequences. The second is to direct the investigation, inspection, examination, and handling of responsibilities of organizations and individuals, including individuals in state management agencies.
Implementing the Prime Minister's direction, the Ministry of Transport has sent a document requesting the People's Committees of the three provinces of Ho Chi Minh City, Lam Dong, and Binh Thuan to immediately inspect the business types and law compliance of Thanh Buoi bus company.
According to the law, this task has been assigned to localities. The Ministry of Transport's viewpoint is to clearly identify and handle any individual or organization that violates the law.
The second issue is that from the Thanh Buoi bus company in the 3 provinces as above, the Ministry of Transport has assigned the Vietnam Road Administration to inspect and examine the state management of the Departments of Transport, not only the 3 provinces and cities but also the Departments of Transport of 63 provinces and cities. From there, to re-determine whether the legal documents on management and business conditions are sufficient, whether the sanctions are strict and deterrent enough.
In December, the Vietnam Road Administration will fully implement the tasks assigned by the Ministry of Transport and will report back to the Government. We will also provide information to the press.
The third issue is that we also closely coordinate with localities, especially the investigation agency of the Ministry of Public Security, during the investigation and handling process.
We cannot take illegal buses and bus stations for granted.
According to the Ministry of Transport, illegal bus and station operations are illegal and must be dealt with, not taken for granted.
The incident that recently occurred in several provinces and cities, the Ministry of Transport has requested localities to coordinate to review and adjust regulations to have stricter sanctions for illegal vehicles and bus stations, more deterrent, to prevent recurrence.
The Prime Minister's dispatch requires a review of all infrastructure to add railings and traffic safety systems to improve the safety of the national highway system nationwide. The Ministry is also reviewing national highways nationwide, adding railings and shelters on highways to minimize unfortunate accidents.
Lieutenant General To An Xo: Ho Chi Minh City Police have also coordinated with relevant units to clarify violations and conduct searches of the headquarters, branches and related locations of Thanh Buoi Company in Ho Chi Minh City and Lam Dong province to clarify the violations of this company. Photo: VGP/Nhat Bac
Clarifying the violations of Thanh Buoi Company
Lieutenant General To An Xo, Spokesperson of the Ministry of Public Security: The Thanh Buoi bus company incident is quite complete and detailed, I would like to add the following:
Firstly, implementing the Prime Minister's Official Dispatch 902 dated September 30, 2023, to overcome the consequences of the serious traffic accident that occurred in Dong Nai, the Ministry of Public Security has directed Dong Nai police to urgently investigate, clarify the cause of the accident, clarify the responsibilities of related individuals and organizations for strict handling in accordance with the provisions of law.
At the same time, the Ministry of Public Security also directed the Ho Chi Minh City Police Department, based on its functions and tasks, to promptly receive, classify, and resolve crime reports related to this company. After the incident, many crime reports were sent to the Ho Chi Minh City Police Department.
Ho Chi Minh City Police also coordinated with relevant units to clarify violations and conducted searches of the headquarters, branches and related locations of Thanh Buoi Company in Ho Chi Minh City and Lam Dong province to clarify the violations of this company.
Our goal is to ensure traffic safety, reduce traffic accidents, contribute to the rectification of passenger transport business activities to serve the people, ensure professionalism in this activity as well as contribute to socio-economic development. There is close coordination between the Ministry of Public Security, the Ministry of Finance, and the Ministry of Transport to clarify this issue.
Deputy Governor Dao Minh Tu: The target of reducing interest rates to support businesses has been achieved. Photo: VGP/Nhat Bac
Achieved the target of reducing interest rates to support businesses
Reporter Duy Cuong, VTVnews Online Newspaper: According to economic reports, since the beginning of this year, the State Bank of Vietnam (SBV) has adjusted the operating interest rate 4 times with a reduction of 0.5 - 2%/year. However, the average deposit and lending interest rate of new transactions in August 2023 only decreased by 1% compared to the end of 2022. Could you please let us know if the interest rate reduction of commercial banks is commensurate with the reduction of the SBV's operating interest rate and whether the current interest rate is really attractive to businesses?
Deputy Governor of the State Bank of Vietnam Dao Minh Tu: Interest rates are an issue that the economy is concerned about, and businesses, customers, and bank borrowers are very concerned about.
Up to now, in general, I think we have achieved the goal of reducing interest rates to support businesses and support credit growth, as well as supporting further investment expansion to increase GDP this year. Regarding interest rates, I provide information for you to evaluate objectively.
Firstly, if interest rates are only thought of in terms of lending, mobilization and lending, that is, how to ensure the relationship, then low mobilization will lead to low lending. But the mobilization issue depends on inflation and other indicators. Therefore, although mobilization has now decreased, it is necessary to calculate the appropriate reduction level. Therefore, the appropriate reduction level of lending interest rates is an indicator that needs to be paid attention to in directing and operating appropriately in the general macroeconomic index.
Second, interest rates are closely related to exchange rates when the interest rate of Vietnamese Dong is too low while the exchange rate is at high levels, especially the foreign currency interest rates of countries that have an impact on Vietnam are very high, which can easily create a difference and the emergence of dollarization as well as the exchange rate problem can be broken. Therefore, how should the operating interest rate be appropriate in relation to the exchange rate? This is a very complicated factor and must be carefully considered before operating.
Third, interest rates are also related to many issues in the economy, including fiscal policy in bond issuance. Then there are issues related to mobilizing state resources or using state loans in general, this is also a big problem.
Furthermore, in managing interest rates, it is necessary to ensure harmony between fiscal policy and monetary policy. In managing interest rates, the State Bank always relies on calculations to find a reasonable solution.
Since the beginning of 2023, our management perspective has been to be both practical and to enhance businesses’ access to capital, and to support businesses by reducing interest rates. From the beginning of the year, we have also directed, sent messages, and used tools to facilitate interest rate reduction.
First of all, the operating interest rate, the State Bank has reduced it 4 times and the reduction is up to 2% for some targets and some interest rates.
For commercial banks, it is true that by the end of July and the beginning of August, the decrease was about 1% compared to the end of 2022.
Since the beginning of the year, the State Bank has calculated the level of impact of the world economy and the resilience of the national economy to the dual difficulties that are affecting many aspects to manage monetary policy towards ensuring the target of controlling inflation this year below 4.5% and supporting growth.
The State Bank of Vietnam has set a target that by the end of this year, the average interest rate reduction of commercial banks will be about 1-1.5%. However, according to statistics and assessments by the State Bank of Vietnam, the average interest rate of new loans will decrease by about 2-2.2%, which is higher than the expectation and desire from the beginning of the year with the interest rate reduction.
Of course, there are still some previous loans, when commercial banks mobilized high, that can still be anchored high due to policy lag. To ensure the harmony of financial plans of commercial banks when mobilization is high, the lending is also commensurate and similar to it.
Therefore, the State Bank has also requested commercial banks to use all measures from now until the end of the year to reduce, including previous lending interest rates, to ensure support for businesses.
Most specifically, on the afternoon of October 27, the State Bank of Vietnam held a conference for the entire industry with 35 major commercial banks that account for the majority of lending to the economy. The conference pointed out which banks have high interest rates and which banks have low interest rates, so that the banks with high interest rates can find measures to reduce support interest rates.
The conference has directed very strongly, specifically for banks with lending interest rates, input and output gaps that are still higher than normal. Up to now, 4 state-owned commercial banks with a key role, for example Vietcombank, the current average lending interest rate of all short, medium and long-term loans and all previous old loans, as well as new loans is only 5.94%. Compared to the end of 2022, it has decreased by 1.75% and compared to the same period last year, it has decreased by 0.29%. This is an example of a large-scale commercial bank with large outstanding loans, or BIDV bank, the average lending rate is 6.46% and compared to the end of last year, it decreased by 2.59% and compared to the same period, it decreased by 0.15%.
Of course, there are also banks whose average lending rates are still high, around 9%, over 9%, all of these banks have been pointed out and have been required to find every measure to reduce interest rates.
The State Bank believes that the interest rates of commercial banks and the State Bank's management up to now are similar, even exceeding the expectations set at the beginning of the year.
Deputy Minister Nguyen Sinh Nhat Tan:
Reporter Ngoc An of Tuoi Tre Newspaper of Ho Chi Minh City asked the Ministry of Industry and Trade and related units about the implementation of the Prime Minister's direction on ensuring electricity supply at the end of 2023 and 2024. So how did the Ministry of Industry and Trade direct EVN and related units to ensure electricity supply?
Regarding the method of calculating electricity prices, the Ministry of Industry and Trade also raised the current viewpoint on whether the method of calculating and adjusting electricity prices is correct, sufficient and appropriate or not? How to ensure sufficient power sources as well as resources for investment in the development of the electricity industry to serve the needs of socio-economic development as well as sustainable development of the electricity industry?
Recently, the Ministry of Industry and Trade issued an inspection conclusion on ensuring electricity supply related to the responsibilities of ministries, branches, as well as related units of the Energy Group. The State Capital Management Committee at Enterprises also proposed to review with some leaders of the Vietnam Electricity Group. I would like to ask whether this proposal is satisfactory or not? Has the Ministry of Industry and Trade conducted a review as well as considered the responsibilities related to the management and supervision of the Ministry of Industry and Trade for the electricity industry regarding ensuring electricity supply?
No power shortage
Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan: To proactively prepare solutions to ensure electricity supply in the last months of 2023 and 2024, the Ministry of Industry and Trade has reported to the Prime Minister to propose solutions to ensure electricity supply and especially to avoid power shortages.
In particular, focusing on the following groups of solutions: Ensuring adequate supply of input fuels (coal, gas, oil for electricity production); speeding up investment progress in power grid projects, especially key projects such as the 500kV line 3 Quang Trach - Pho Noi; ensuring safe and reliable operation of power generation organizations; regulating the operation of the power system, mobilizing optimal and technical power sources, ensuring reasonable costs; promoting saving and efficient use of electricity.
In addition to ensuring electricity supply, the Ministry of Industry and Trade also implements quite important solutions, which are related to the economical and efficient use of electricity, which is very necessary in the current context,...
To ensure electricity supply, the Ministry of Industry and Trade has also directed the Vietnam Electricity Group to improve forecasting and develop scenarios to deal with emergency and extreme situations that may occur in the operation of the power system; ensuring sufficient electricity supply for the country's socio-economic development as well as for people's daily lives.
Building a mechanism to adjust electricity prices with a suitable roadmap
Regarding the method of calculating electricity prices, based on Decision No. 24 of the Prime Minister, which specifically stipulates the methods of establishing average retail electricity prices, including costs of stages in the electricity production and supply process such as generation, transmission, distribution, retail, operation, industry management... ensuring that the electricity production and business costs of Vietnam Electricity Group are reflected correctly and sufficiently.
The mechanisms for operating and adjusting the average electricity price have been clearly stipulated in Decision 24 regarding the following contents: Input parameters whose fluctuations cause the average electricity price to increase by 3% or more compared to the current level will be considered for an increase; and if it decreases, it will be considered for a corresponding decrease.
Electricity is a commodity present in almost all aspects of socio-economic life, so adjusting electricity will affect the whole society, so Decision 24 also stipulates that it is necessary to report to the Prime Minister for comments in case it affects the macro-economy. Therefore, for a number of years, electricity prices have been kept stable to ensure the macro-economy, control inflation and people's lives.
Currently, implementing the direction of the Prime Minister, the Ministry of Industry and Trade has studied and revised Decision 24 to develop a mechanism for adjusting electricity prices with a suitable roadmap. The Ministry of Industry and Trade has now submitted it to the Prime Minister.
The Ministry of Industry and Trade has reviewed units related to electricity supply.
Regarding the inspection of electricity supply, the Ministry of Industry and Trade has inspected and based on the inspection, has issued an inspection conclusion last July. In which, there is a very important content which is the review work. The Ministry of Industry and Trade has made a recommendation to the Prime Minister to assign this issue to the State Capital Management Committee at Enterprises.
Through the monitoring and supervision process, the Ministry of Industry and Trade found that corporations and general companies, especially Vietnam Electricity Group, have implemented very seriously, and clarified the responsibilities of relevant collectives and individuals as indicated in the inspection conclusion.
The proposed forms of discipline have been reported to the State Capital Management Committee at Enterprises and, as far as we know, the Committee is preparing to report to the Prime Minister.
The Ministry of Industry and Trade has also organized inspections and conducted reviews of relevant units within the Ministry of Industry and Trade. The conclusions also recommended that the Ministry of Industry and Trade review a number of units (about 5 units).
The Ministry of Industry and Trade will continue to coordinate with the Capital Management Committee to implement solutions, especially directing EVN to overcome the consequences, especially finding solutions to avoid repeating the errors pointed out in the Ministry's inspection conclusion.
Vice Chairman of the State Capital Management Committee Ho Si Hung: EVN has seriously reviewed and proposed appropriate disciplinary measures. Photo: VGP/Nhat Bac
EVN has seriously reviewed and proposed appropriate disciplinary measures.
Vice Chairman of the State Capital Management Committee at Enterprises Ho Si Hung: The inspection conclusion of the Ministry of Industry and Trade pointed out a number of shortcomings and violations in 5 groups of contents occurring in the period from January 2021 to June 2023: Slow investment and completion of some power grid sources; not ensuring sufficient reserves of primary materials according to the norm to ensure electricity supply; unbalanced dispatch of the power system in mobilizing power sources and power source structure; violations in directing and operating the system during the dry season of 2023; widespread interruption of power supply, especially in the Northern region in May and June 2023.
These are very important contents, serving as the basis for clearly defining the responsibilities of issues related to the individuals and groups that have implemented this content.
Based on the inspection content, the State Capital Management Committee at Enterprises has directed EVN to conduct a review according to regulations.
After reviewing to clarify responsibilities, a Disciplinary Council was established to determine the level of discipline. Up to now, EVN has conducted a very serious review, through 2 rounds of review, at the same time clarifying the arising issues and including the solutions that need to be overcome.
Currently, EVN has decided to discipline 1 Deputy General Director in charge of power system dispatching, and 3 leaders of the National Power Dispatch Center (A0), including 1 director and 2 deputy directors.
At the same time, EVN has also proposed to the State Capital Management Committee at enterprises to report and coordinate with competent authorities to consider disciplinary action against the former Chairman of Vietnam Electricity Group and the current Member of the Board of Members and General Director of Vietnam Electricity Group.
The Capital Management Committee believes that EVN has conducted the review in accordance with the content stated in the Inspection Conclusion, seriously and proposed appropriate disciplinary measures in accordance with the provisions of Decree No. 159/2020/ND-CP. During the implementation process, there was participation from the Ministry of Industry and Trade and opinions from the Party Committee of the Central Enterprises to ensure the review was correct, objective and transparent.
Vice Chairman of Hanoi People's Committee Ha Minh Hai. Photo: VGP/Nhat Bac
What has Hanoi done so that the people of the capital do not have to struggle to find clean water?
Reporter Hoang Le, VOV Online Newspaper: There is a water shortage in Thanh Ha Urban Area and surrounding areas, and schools are also affected. So, may I ask, what solutions has Hanoi city taken so that people living in the capital do not have to struggle to find clean water, while not being supplied with water but still receiving water bills that are double the previous period?
Vice Chairman of Hanoi People's Committee Ha Minh Hai : Regarding the general water supply planning, Hanoi has two planning periods. The Prime Minister has also approved. The period in 2013 and adjusted in Decision 554/QD-TTg in 2021 with this planning, Thanh Ha urban area, Ha Dong area and the South of Hanoi are supplied with water from the Da River Surface Water Plant. Then it is supplemented from the Xuan Mai Surface Water Plant. However, Xuan Mai Surface Water Plant is currently still being implemented. In particular, the transmission pipelines of Ring Road 3.5 and Ring Road 4 are currently under construction.
To supply water for the project, Ha Dong Clean Water Company Limited has issued a document on the agreement to supply water for the Southern trunk road project of about 1000 m3 /day and night.
To ensure sufficient clean water supply for Thanh Ha Urban Area, in 2018, Hanoi City also issued a document approving Thanh Ha Clean Water Joint Stock Company to supply Thanh Ha Urban Area with a water station with a capacity of about 5,000 m3 /day and night. With this content, if this planning is ensured, water supply for Thanh Ha will be ensured.
However, in June 2021, water quality will have to comply with the Ministry of Health's QCVN 01-1:2018 standard. Thanh Ha Clean Water Joint Stock Company has adjusted the exploitation of groundwater with an output of about (1,000-1,500) m 3 /day and night and added an additional source from the Duong River Water Plant of about (2,000-3,000) m 3 /day and night.
At present, Thanh Ha Urban Area has a population of about 26,500 people with a usage of about 3,500 m3 /day and night. When implementing this content, due to adjusting the output of underground water exploitation and especially combined with the pressure of the source from the Duong River surface water to supply this Urban Area, it also decreased, not enough water to supply to Thanh Ha Urban Area.
Therefore, from September 26, the amount of water for Thanh Ha Urban Area decreased and from October 9 to October 14, the amount of water used decreased and Thanh Ha Clean Water Joint Stock Company also stopped on October 14 to ensure water quality.
After this incident, the Hanoi City Party Committee and People's Committee assigned the Department of Construction, together with district and commune units, to deploy, review and handle work related to clean water supply in Thanh Ha Urban Area.
Firstly, Duong River Surface Water Company has coordinated with Hanoi Clean Water Company and VIWACO Company to regulate water sources for Ha Dong Clean Water Company to supplement Thanh Ha Urban Area.
Second, Hanoi Clean Water Company has also maximized its capacity to exploit underground water to supplement the water source from Duong River. The water source from Duong River will continue to supplement Thanh Ha Urban Area.
Third, Ha Dong Clean Water Company also supports Thanh Ha Clean Water Company to operate and regulate water supply to areas through booster stations and tank trucks to supply people in urban areas.
Fourthly, Song Da Clean Water Joint Stock Company has also deployed technical solutions and also maximized capacity in possible technical conditions to ensure additional safety for clean water sources for Ha Dong and Thanh Oai districts of Ha Dong district and Thanh Ha Clean Water Company has also reviewed, processed, and specifically reported to the Department of Construction, reporting the needs for the Department of Construction to have general regulations. Then deploy the review to coordinate with the Building Management Board to have a plan to clean and disinfect underground tanks and roof tanks of the Urban Area. The Department of Health has also assigned the Hanoi CDC to come down to inspect and review all issues related to environmental sanitation.
Results from October 13-26, additional flow was concentrated from stations, especially from additional water supply by hour, by tanker truck. People supplemented their use by hour and stored their use by day; used additional regulation to increase the source from Duong River to Da River from 3600 - 5800 m3 /day and night to implement rotating water supply and hourly supply.
Currently, the water supply has gradually stabilized and water is stored in underground tanks and roof tanks of the urban area. By October 26, the flow of the Da River to the urban area continued to maintain 5700 m3 /day and night and decreased to 3800 m3 /day and night because the storage in the roof tanks and underground tanks of the urban areas were full of water.
Up to now, the water supply for Thanh Ha Urban Area has gradually stabilized and ensured clean water. Water samples from the source supplying water to Thanh Ha have been tested to ensure hygiene conditions according to the criteria and quality of the QCVN 01-1:2018 standard of the Ministry of Health.
Regarding solutions to be implemented in the coming time, Hanoi City is assigning the Duong River and Da River Surface Water Joint Stock Company to coordinate with Thanh Ha Clean Water Company to continue reviewing and investing to ensure public water according to the plan and planning assigned by the City.
The city assigned the Department of Planning and Investment to inspect, review and urge investors based on their functions and tasks. Currently, the sources have also planned to assign to investors projects such as: Red River Surface Water Plant, Da River Surface Water Plant Phase 2 and the investment project to increase the water capacity of Bac Thanh Long - Van Tri, Xuan Mai Water Plant.
Hanoi City is implementing solutions to speed up project implementation; requesting timely advice and proposals to remove difficulties and obstacles in the implementation process or resolutely terminate and revoke slow-moving projects for investors who do not ensure capacity or do not ensure project implementation progress.
Hanoi City also assigned the Department of Construction to coordinate with the People's Committees of districts and towns to supervise water supply units in the area according to the water supply plan and water supply scope. The city is also urgently building water supply networks, striving to ensure that by 2025, 100% of households are provided with clean water from the city's centralized source.
Request the Department of Construction and the Department of Planning and Investment to strengthen inspection and supervision of the progress of development projects to propose and advise the City People's Committee to remove difficulties and report to the city to terminate investors who have been approved for water supply zoning but are slow to implement the plan.
Regarding water supply in some areas facing difficulties in water resources, Hanoi City has assigned the Department of Construction and the People's Committees of districts and towns according to their decentralization to promptly develop appropriate solutions and solutions to ensure adequate clean water supply to meet the clean water needs of the people...
For water supply units in the city, urgently develop plans and roadmaps, investment plans for construction and implementation of water supply systems as planned; promptly report difficulties and problems and propose solutions to accelerate the completion of water supply projects as planned and proactively overcome when the situation of shortage of clean water for people's daily life.
Regarding coordination with localities, Hanoi City continues to coordinate and requests the People's Committee of Hoa Binh province to focus on solving difficulties when implementing projects such as: Da River surface water factory phase 2, Xuan Mai river surface water plant to raise clean water capacity to ensure the supply as planned and roadmap of the city./.
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