Pressure from many difficulties and challenges
Reviewing the report on the socio-economic situation in 2022 and the first months of 2023 at the National Assembly session on May 22, Chairman of the Economic Committee Vu Hong Thanh emphasized that despite facing many difficulties and challenges at home and abroad, the Government has made correct and timely decisions, helping our country's economy recover quickly, achieving quite comprehensive and positive results in many fields.
However, Chairman of the Economic Committee Vu Hong Thanh also pointed out that, in addition to the achieved results, the socio-economic situation in the first 4 months of 2023 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.
Chairman of the Economic Committee Vu Hong Thanh suggested that the Government pay more attention and evaluate a number of issues more carefully.
According to the Chairman of the Economic Committee, GDP growth in the first quarter of 2023 reached 3.32%, a very low level in the context of the economy opening up after controlling the Covid-19 epidemic and on the low base of the same period last year, showing that completing the annual growth target (6.5%) is very difficult.
Notably, some localities which are the country's main industrial production and export centers have negative growth compared to the same period; the main drivers of growth have all decreased and are on the decline, such as exports in the first 4 months decreased by 13%; foreign direct investment attraction and disbursement decreased by 17.9% and 1.2%, respectively; industrial production decreased by 1.8%.
The total number of newly established and re-entering businesses decreased by 2% compared to the same period last year, while the number of businesses withdrawing from the market increased by 25% and this trend may become more complicated in the coming time.
Many businesses face great debt repayment pressure and have had to transfer their businesses and sell shares at very low prices, in many cases to foreign partners. The number of businesses lacking orders is common.
At the same time, the average lending interest rate remains high (about 9.3%/year) and credit growth by the end of April increased by 2.75% compared to the beginning of the year, showing difficulties in the capital absorption capacity of businesses and the economy.
"A number of incidents that have occurred recently have greatly affected people's confidence in the financial system, banking system, and insurance market, especially the shortcomings in the way bank employees advise on corporate bond investment, brokerage, issuance consultancy, support, commitment to buy back bonds and orient depositors to switch to buying corporate bonds, cross-selling insurance when reviewing loan applications," added Chairman Vu Hong Thanh.
Proposal to review and amend electricity price mechanism
Faced with the above issues, Chairman of the Economic Committee Vu Hong Thanh proposed that the Government increase the autonomy of the economy on the basis of improving and maintaining the stable and safe development of the system of credit institutions, the monetary market, the real estate market, the stock market, and corporate bonds.
The Economic Committee also proposed studying the option of increasing the family deduction for personal income tax, reducing value added tax but ensuring budget balance and budget deficit in 2023 not exceeding the level allowed by the National Assembly and flexibility in adjusting environmental protection tax on petroleum products.
Along with that, it is necessary to synchronously implement solutions to remove difficulties; at the same time, strengthen management and supervision of the currency, stock, corporate bond and real estate markets.
"Tightly control the granting of credit and capital use, especially for businesses, corporations, and backyard projects; protect investors' rights according to the law," the Chairman of the Economic Committee proposed.
At the same time, handle shortcomings in corporate bond investment consulting, brokerage, issuance consulting, support, bond repurchase commitment and orientation for depositors to switch to buying corporate bonds, cross-selling insurance when reviewing loan applications.
The Economic Committee also proposed to promote the improvement of the investment and business environment, reform administrative procedures. Immediately remove difficulties and obstacles in regulations on fire prevention and fighting, continue to thoroughly resolve the issue of motor vehicle inspection... In addition, urgently review and amend the shortcomings in regulations on petroleum business. Review and amend the electricity price mechanism to match the orientation of socio-economic development in the coming time...
GRASSLAND
Source
Comment (0)