'Many businesses transfer and sell shares at low prices to foreigners'

Achieving the 2023 growth target is very difficult

On the morning of May 22, at the opening session of the 5th session of the 15th National Assembly, reporting on the additional assessment of the socio-economic situation and state budget in 2022; the implementation situation in the first months of 2023, Chairman of the National Assembly's Economic Committee Vu Hong Thanh assessed that in the first months of the year, in the context of the world continuing to have complicated developments, the macroeconomic situation was basically stable, inflation was controlled, and major balances of the economy continued to be ensured.

Chairman of the National Assembly Economic Committee Vu Hong Thanh reports on the socio-economic audit in 2022 and the first months of 2023.

However, Mr. Thanh acknowledged that the socio-economic situation in the first four months of the year continued to reveal difficulties and challenges from the fourth quarter of 2022, causing great pressure on macroeconomic management and the ability to complete the growth target for the whole year of 2023.

The Chairman of the National Assembly's Economic Committee suggested that the Government carefully assess many issues, such as the GDP growth in the first quarter reaching 3.32%, a very low level in the context of an open economy and on the low base of the same period last year. "This shows that achieving the annual growth target of 6.5% is very difficult," Mr. Thanh said.

Mr. Thanh also reflected that the total number of newly established and re-operated enterprises decreased by 2% compared to the same period last year, while the number of enterprises withdrawing from the market increased by 25% and this trend may become more complicated in the coming time.

Many businesses are facing great pressure to repay debts, so they have to transfer their businesses, sell shares at very low prices, in many cases to foreign partners. The number of businesses lacking orders is common.

The National Assembly Economic Committee assessed that some "bottlenecks" of the economy have not been effectively removed.

Besides, some "bottlenecks" have not been effectively resolved such as the approval of planning and the structure of the credit institution system.

Although public investment disbursement has improved, the estimated disbursement rate for the first four months is only 14.66% of the plan, creating great pressure on disbursement and the ability to complete the target in the remaining quarters of the year, according to Mr. Thanh.

Internal economic problems have not been completely resolved.

The Chairman of the National Assembly Economic Committee also pointed out that the average lending interest rate remains high (about 9.3%/year) and credit growth by the end of April increased by a low 2.75% compared to the beginning of the year, showing difficulties in the capital absorption capacity of enterprises and the economy. Bad debt tends to increase, capital mobilization channels through issuing stocks and corporate bonds are facing difficulties.

At the same time, the real estate market and businesses continue to face many difficulties in liquidity and cash flow; many businesses are slow to pay principal and interest on bonds.

"In particular, in the context of great pressure on corporate bond maturity and repayment in 2023, especially in the third quarter, it is expected that about VND104,000 billion of bonds will mature, posing a huge risk to the market in the coming time," Mr. Thanh said.

Party and State leaders at the opening session of the 5th session of the 15th National Assembly

Mr. Thanh also reflected on the situation that many businesses are facing many difficulties, stopping operations, and closing down after new regulations on fire prevention and fighting standards and criteria were issued and took effect.

Traffic congestion; the petroleum market is sometimes not managed and coordinated promptly; the use of the Petroleum Price Stabilization Fund has some shortcomings.

"At the same time, the recent increase in electricity prices has also caused difficulties for people's lives and business operations, while the unreasonable electricity purchase and sale price structure is a long-standing problem that has not been resolved," said Mr. Thanh.

The National Assembly Economic Committee believes that the main cause of the shortcomings and limitations in recent times is the heavy impact and influence of adverse external factors and internal limitations and shortcomings of the economy that have accumulated over a long period of time and have not been completely resolved.

At the same time, Mr. Thanh reflected on the situation where a number of officials and civil servants at the central and local levels still avoid and push away work, lack responsibility, causing congestion and stagnation in solving work, and slow policy response to economic fluctuations.

"The Government is requested to fully identify the achievements and shortcomings and limitations of the economy; clarify objective and subjective causes, lessons learned; clarify the responsibilities of relevant organizations and individuals in implementing socio-economic development tasks to promptly have effective solutions to overcome them," Mr. Thanh emphasized.

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