On the morning of May 25, the National Assembly discussed the report of the monitoring delegation and the draft Resolution of the National Assembly on the results of the thematic monitoring of "the implementation of Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies to support the Socio-Economic Recovery and Development Program and the National Assembly's resolutions on a number of important national projects until the end of 2023". Delegate Ha Sy Dong (Vice Chairman of the People's Committee of Quang Tri province) said that Resolution 43 was issued in early 2022 and is expected to be implemented in 2022-2023 with the goal of economic recovery after Covid-19. However, the slow implementation of Resolution 43 has brought about its effectiveness. Because if it were implemented strongly in early 2022 when it was first issued, it would cause the asset bubble at that time to swell even more. Deployed slowly, when the bubble has passed its peak and the "landing" process has begun, Resolution 43 has the effect of helping Vietnam "softly land", instead of "hard landing" like many other countries.

Delegate Ha Sy Dong spoke this morning. Photo: National Assembly

Regarding monetary policy, Delegate Ha Sy Dong commented that 2022 and 2023 were "two years of sweat" for monetary policy. Looking back, there were many things that were done and some things that still existed, but according to Mr. Dong, at that time, being able to operate as it did could be considered a success. In the long term, the Delegate proposed that it is necessary to move towards using interest rate tools to manage credit rather than credit growth limit tools (credit room). In the report sent to the National Assembly at this session, the State Bank still maintained its view that it is not possible to abandon the credit room tool. However, Delegate Ha Sy Dong suggested that the State Bank soon summarize and evaluate the credit room policy and move towards legalizing this issue. The Delegate also added that "there is a situation of adding water to the rain", taking advantage of the fact that the National Assembly and the Government are having an economic recovery support package, but some sectors are asking for more. For example, automobiles requested an extension to pay special consumption tax and a reduction in registration fees, making 2022 the year the automobile industry had record sales. Delegates analyzed that the reduction in gasoline tax and the 2% VAT reduction policy could have been adjusted to reduce all items from 10% to 8%, but it was rigidly dependent on the National Assembly and on Resolution 43. Regarding the tax reduction policy until the end of 2024, many opinions suggested reducing it by a few more months to 2025, which is a "harvesting" time for businesses.

Illustration: Hoang Ha

The delegate said that the lesson learned after implementing Resolution 43 is to focus on feasibility and timing. Macroeconomic policies have an important characteristic of having to choose the right time, a policy that is right in January may not be right in March when inflation and growth are different. Therefore, if there are macroeconomic support packages in the future, the timing factor must be carefully considered to put the policy into practice. According to the delegate, if there is a situation that requires support policies, the first thing to think about is tax reduction, perhaps even considering a larger tax reduction and focusing on a number of very specific industries. For example, at the time when social distancing is just starting to end and flights are restored, we should consider reducing aviation VAT to 0 or reducing other fees and taxes. This can help the aviation industry and other industries recover faster. Delegate Mai Van Hai (Thanh Hoa) stated that the issuance and implementation of Resolution 43 was correct and timely with many unprecedented policies, encouraging the spirit of people and businesses and supplementing large resources from the state budget and other mobilized sources to support economic recovery and development. A bright spot in the implementation of Resolution 43 is that many support policy mechanisms have reached people and businesses, focusing resources on investment in infrastructure development, especially transport infrastructure. The delegate said that the 2% VAT reduction policy has been extended until June 30, 2024. Through monitoring, the delegate said that businesses highly appreciated it because it both stimulates consumption and stimulates production development. Therefore, the delegate suggested that the National Assembly consider allowing the continued extension of the policy implementation for a period appropriate to the situation where businesses and people are still facing difficulties, and the ability to self-recover and develop is not yet sustainable.

Tran Thuong - Vietnamnet.vn

Source: https://vietnamnet.vn/nghi-quyet-43-chua-tung-co-tien-le-giup-viet-nam-ha-canh-mem-2284311.html