The economy is thirsty for capital but has difficulty absorbing it.

Some bottlenecks have not been effectively removed.

On October 23, presenting the report on the review and assessment of the results of the implementation of the 2023 socio-economic development plan and the Government's proposed 2024 socio-economic development plan, Chairman of the National Assembly's Economic Committee Vu Hong Thanh said: In 2023, the world economic situation will continue to recover precariously due to "headwinds" from the consequences of the COVID-19 pandemic, geopolitical tensions, military conflicts, strategic competition between major countries as well as high and prolonged inflation.

In that context, under the leadership of the Party; the proactiveness and effective supervision of the National Assembly; the drastic direction of the Government and the Prime Minister; the drastic participation of the entire political system; the support, sharing and trust of all classes of people and the business community, the socio-economic situation of our country continues to recover positively, each month is better than the previous month, each quarter is higher than the previous quarter, basically achieving the set general goals and many important results in all fields; on the basis of the results of the first 9 months, it is estimated that 10/15 targets for the whole year 2023 will reach and exceed the set goals.

The economy is thirsty for capital but has difficulty absorbing it. — Chairman of the National Assembly's Economic Committee Vu Hong Thanh presented the Verification Report.

Chairman of the National Assembly's Economic Committee Vu Hong Thanh stated that, in addition to the achieved results, the Economic Committee proposed to pay attention and focus on more careful assessment of a number of issues such as: It is estimated that in 2023, 5/15 targets will not reach the set targets (in 2022, 2/15 targets will not be reached), of which the target of social labor productivity growth rate will not be achieved for the third consecutive year. The main growth drivers of the economy are slowing down, even declining and are under great pressure from the outside. Goods exports in the first 9 months decreased by 8.2% compared to the same period, many key export groups continued to decrease sharply, major export markets decreased or increased very little.

In addition, the Economic Committee believes that some bottlenecks have not been effectively resolved. Although administrative procedures have been reduced, they are still cumbersome and complicated in some areas, and the issuance of circulars and technical regulations is still inadequate, causing difficulties for people and businesses. The progress of establishing and implementing plans under the national planning system has had positive results but is still slower than required, causing pressure on the approval and decision-making of plans in the last months of the year. The implementation of the Project on restructuring the system of credit institutions associated with bad debt settlement in the 2021-2025 period and the plan to handle weak credit institutions, projects and works with slow progress, ineffective investment, and prolonged losses is still slow.

Along with that, the economy is thirsty for capital but has difficulty absorbing capital. Although the mobilization interest rate and lending interest rate have decreased, credit growth by September 29, 2023 only increased by 6.92%.

In 2023, the State Bank adjusted the operating interest rate 4 times with a decrease of 0.5-2.0%/year, but the average deposit and lending interest rate of new transactions at the end of August 2023 only decreased by about 1.0% compared to the end of 2022. Enterprises still face many difficulties in the market, cash flow and administrative procedures, infrastructure does not meet requirements, production costs and logistics costs increase; the connection between FDI enterprises, state-owned enterprises and domestic private enterprises is loose and lacks cohesion.

Focus on removing difficulties and unlocking resources

In the last months of 2023, the Economic Committee proposes to continue to consistently implement the goal of maintaining macroeconomic stability, controlling inflation according to the set target, prioritizing growth promotion and ensuring major balances of the economy; focusing on implementing solutions to strongly promote the 3 growth drivers (investment, consumption, export); paying attention to promoting recovery and boosting the growth engines of the economy. Focus on removing difficulties, unblocking resources and market activities, improving the competitiveness of the economy, striving to achieve the highest targets of the 2023 plan.

Regarding the proposed Socio-Economic Development Plan for 2024, the Economic Committee basically agrees with the major orientations, goals, targets, tasks and solutions for the whole year of 2024 as reported by the Government. The Economic Committee proposes to review and evaluate the feasibility of the GDP growth target as well as the completion of the whole-term target; more carefully evaluate the preparation of the state budget estimate, consider building a more active state budget revenue estimate to increase development investment spending and reduce the deficit; study and supplement the social housing development target according to Resolution No. 06-NQ/TW dated January 24, 2022 of the Politburo.

Strengthening endogenous capacity, consolidating the foundation, ensuring macroeconomic stability

Regarding tasks and solutions, the Economic Committee recommends that the Government, all levels and sectors focus on overcoming the shortcomings, inadequacies and socio-economic problems mentioned in this report and the Government's report, and must be associated with the orientation of renewing the growth model, restructuring the economy, improving labor productivity, competitiveness and improving the investment and business environment.

Specifically, it is necessary to enhance endogenous capacity, consolidate the foundation, ensure macroeconomic stability, control inflation, and enhance the adaptive capacity and resilience of the economy.

Continue to operate monetary policy proactively, flexibly, promptly and effectively; coordinate synchronously, harmoniously and closely with a reasonable, focused, key expansionary fiscal policy and other policies.

In addition, it is necessary to overcome shortcomings and limitations to accelerate the disbursement of public investment capital from the beginning of 2024, especially important national projects, key works and 3 National Target Programs; enhance the responsibility of leaders in deciding on investment policies and project investment decisions; resolutely eliminate unnecessary, scattered and ineffective projects.

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