Government requests to promote trade promotion diversify and expand international markets

Improve institutions and laws to remove difficulties for production and business. Photo: H.Diu

In Resolution 126/NQ-CP, the Government unanimously assessed that the world situation is forecast to continue to develop rapidly and unpredictably. Inflation in many countries and regions increased sharply at a high level; the increase in interest rates and contraction of monetary and fiscal policies leads to a decline in growth, an increased risk of recession, and potential risks of finance, currency and public debt.

Domestically, with the economy's modest size, large openness, competitiveness and resilience the economy is still limited; small fluctuations in the world economy can greatly affect the domestic situation, especially inflation pressure, exchange rate, increased production costs, and narrowing of demand in traditional export markets.

In that context, the Government has consistently prioritized maintaining macroeconomic stability, controlling inflation, promoting growth, and ensuring major balances of the economy; this requested ministries, agencies and localities to focus on thoroughly grasping and organizing the effective implementation of the Resolutions of the Party, the National Assembly and the Government, and the direction of the Prime Minister, especially Directive No. 15/CT- TTg dated September 16, 2022 on key tasks and solutions to maintain macroeconomic stability, control inflation, promote growth and ensure major balances of the economy in the new situation.

Accelerating the implementation of the 2% interest rate support policy

The Government requested the State Bank of Vietnam to assume the prime responsibility for, and coordinate with ministries, agencies and localities in implementing prudent monetary policies, ensuring the initiative, flexibility, efficiency, the close and effective coordination of the monetary policy with fiscal and other policies to control inflation, stabilize the macro-economy and contribute to growth; synchronously coordinate tools and solutions on exchange rates, interest rates and credit growth.

Managing interest rates in line with inflation and domestic and foreign markets; synchronized coordination with flexible exchange rate management, suitable to the market situation and monetary policy objectives, ready to sell interventions when necessary to stabilize the foreign currency market, contributing to stabilizing the macro-economy, control inflation; promote the implementation of the policy of supporting 2% interest rate under the Government's Decree No. 31/2022/ND-CP; strengthening information and communication work, contributing to creating social consensus, and improving the effectiveness of policy implementation.

At the same time, the State Bank of Vietnam directs and guides credit institutions to continue to innovate technology, improve operational efficiency, and administration; reduce costs, research and have solutions to strive for stability or reduce loan costs and interest rates.

Review reduction of taxes, fees and charges

The Ministry of Finance will assume the prime responsibility for and coordinate with other ministries, agencies and localities in implementing reasonable, focused and effective fiscal expansion policies; to step up revenue growth, expand the revenue base, and strengthen the fight against revenue loss; thoroughly save recurrent expenses, especially non-business expenses of investment nature, expenditures that are not really necessary; continue to direct and review the reduction of taxes, fees and charges and adopt appropriate policies to support people and businesses to continue expanding production, business and job creation activities.

Together with ministries, branches and localities, according to their functions and tasks strengthen management and control of prices and markets, especially essential commodities for production and life; strengthen the prevention and combat of smuggling and commercial fraud.

The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with other ministries, agencies and localities in closely monitoring and grasping the situation of international and domestic developments, strengthening analysis and forecasting, and proactively taking appropriate solutions and timely policy response to changes in the international and domestic situation.

To urge and promote the disbursement of public investment capital, implement the socio-economic recovery and development program, and three national target programs; at the same time, increase the mobilization of non-state resources for development investment.

The planning work needs doing well; continue to review and perfect institutions, mechanisms, policies and laws to remove difficulties in production and business; together with ministries, agencies and localities to effectively solve arising problems and outstanding issues.

Accelerating restructuring of fields

The Government requested the Ministry of Industry and Trade assume the prime responsibility for, and coordinate with other ministries, agencies and localities in closely monitoring supply and demand movements, the market situation of essential commodities, especially gasoline and oil; solutions need to be issued to not disrupt supply, meet domestic production and consumption needs; accelerate the restructuring of the industrial and commercial sectors, striving for a sustainable trade surplus; strongly promote the development of the domestic market, promote trade promotion, diversify and expand the international market. Firmly ensure energy security, promote green energy conversion and reduce emissions.

The Ministry of Agriculture and Rural Development shall assume the prime responsibility for, and coordinate with ministries, agencies and localities in, absolutely ensuring food security in all situations; accelerate the restructuring and development of agricultural production in the direction of efficiency and sustainability, promote the export of agricultural products, affirm, consolidate and develop the global value chains of fruits, food and aquatic products.

The Ministry of Labor, War Invalids and Social Affairs shall assume the prime responsibility for, and coordinate with ministries, agencies and localities in, promoting sustainable and effective labor market development; strongly promote the training of highly skilled workers, meet development requirements in all fields and prepare for the trend of investment transformation; performing social security work, ensuring people's lives, paying special attention to the disadvantaged, people in remote and border areas, islands, ethnic minority areas, and difficult-to-reach areas.

The Ministry of Construction shall assume the prime responsibility for, and coordinate with ministries, agencies and localities in, promoting the development of social housing and housing for workers; review and perfect mechanisms, policies and legal regulations to develop a safe, healthy, efficient and sustainable real estate market.

Improve institutions and laws to remove difficulties for production and business

The Government requires ministries, branches and localities, based on their assigned functions, tasks and powers, to thoroughly grasp the viewpoint of directing and operating the macro-economy in a proactive, flexible, timely, creative and effective manner, being suitable for the situation and practical requirements in the direction of ensuring stability in uncertain conditions; keep the initiative in the face of complicated and unpredictable developments; steadfast, consistent, appropriate, effective in the face of fluctuations and multi-dimensional impacts from the world and the country; control risks, promptly respond to the risk of recession and crisis; building a line of international economic cooperation and competition in the context of extensive integration. At the same time, ensure the security and safety of money, credit, finance, public debt, food, energy and information.

The planning work must be done well; review and perfect institutions and laws to remove difficulties for production and business, and solve arising problems. Continue to promote the development of agriculture, industry, construction and services, creating a solid foundation for macro stability and sustainable development. Focus on effectively handling outstanding issues according to the decisions of competent authorities.

At the same time, continue to focus on cultural and social development, environmental protection, social security assurance, and improvement of the people's material and spiritual life; promote administrative reform, build and perfect institutions, mechanisms, policies and laws; strengthen the prevention and fight against corruption, negativity and wastefulness; maintaining socio-political stability, strengthening national defense and security, ensuring social order and safety; promote digital transformation, green transformation, prevention and control of natural disasters, epidemics and response to climate change.

The situations are closely monitored and grasped, strengthening the ability to analyze, forecast and react quickly and promptly to policy, not to be passive or surprised in all situations. Proactive, flexible and effective in formulating and implementing mechanisms and policies.