Need to "shake hands" more tightly in implementing interest rate support for businesses

Mr. Can Van Luc

How do you evaluate the effectiveness of the coordination in the implementation of fiscal and monetary policies in order to implement the Socio-economic Recovery and Development Program?

In recent years, the coordination of fiscal policy and monetary policy has been relatively smooth. Therefore, Vietnam has basically stabilized the macroeconomy, controlled inflation well, and created confidence for businesses. Currently, foreign investors are also interested in shifting investment capital flows and supply chains to Vietnam.

However, some components of the Socio-Economic Recovery and Development Program such as the rental assistance package for workers, and the interest rate-related component have been slow or only partially implemented.

On the other hand, the public investment component of VND113 trillion under the Socio-Economic Development and Recovery Program promulgated by the National Assembly and the Government has also just approved the project list.

It is hoped that the barriers and obstacles that have been identified by ministries, branches, localities and the Government will soon be removed to promote better disbursement of this program. Striving to disburse about 35% in 2022, and about 40-45% in 2023; Particularly, in the next the years, a disbursement rate of about 80-85% is already a great success.

In your opinion, what are the barriers in the process of disbursing support packages and components in the socio-economic recovery and development program?

The barrier depends on the specific component or support package. For example, in the rent support package for workers, the biggest problem is that the implementation process is too slow. The locality also showed fear of making mistakes, leading to some places, sometimes even "laying" more administrative procedures, making businesses frustrated and not interested.

Particularly, the 2% interest rate support program (Decree 31/2022/ND-CP on interest rate support from the state budget for loans of enterprises, cooperatives, business households) is unable to identify the right object.

As required, the main objects here are business households and households are obligated to register their business, while in fact, many business households and households have not yet registered. Therefore, solving this problem in the future is a dilemma.

In the process of implementing support packages and components in the Socio-Economic Development and Recovery Program, especially the interest rate support package, businesses themselves also have concerns about post-inspection and control. Obviously, removing difficulties and obstacles requires close coordination between credit institutions and enterprises. At the same time, it needs the drastic participation of ministries, branches and localities.

In addition to financial and monetary solutions, a skilled and sustainable labor source is an important factor enabling businesses to secure production and business, towards ensuring the stable growth of the economy. What are the important factors to help stabilize the labor market?

Labor is always a key issue both during and after the pandemic, not only in Vietnam but all over the world. Vietnam needs to seriously evaluate and review the entire labor market situation to clarify the limitations as well as the main obstacles and bottlenecks with the labor market.

Besides, given temporary shortages in some industries, it is hoped that ministries, branches and localities have plans to support businesses such as short-term training support programs so that enterprises can have more labor supply in the immediate future. In the long term, many issues must change to develop high-quality, skilled human resources associated with the digital transformation roadmap, creating a more marketable labor market.

Thank you very much!