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Thursday, January 20 2022
Tiếng Việt
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Date 02/10/2021-11:47:00 AM
Building Practical and Effective Economic Recovery and Development Programme for 2022-2023
(MPI) – At the Consultative Conference on Economic Recovery and Development Programme for 2022-2023 on October 1st, 2021, Minister Nguyen Chi Dung concluded that the Ministry of Planning and Investment had received the attention, belief and expectations of international organizations for the Vietnamese economy and the trust by the business communities and associations in the Party, State and Government’s guildlines in the pandemic prevention and preparation for restoring the economy.
Country Director of the ADB in Vietnam Andrew Jeffries. Photo: MPI

At the conference, experts and delegates as representatives of ministries, industries and international organizations discussed the impact of the pandemic; objectives, objects, scope and time of the Programme implementation; solutions to the economic recovery and development by 2023.

Country Director of the Asian Development Bank in Vietnam Andrew Jeffries at the conference said that Vietnam is a highly open economy so the impact of COVID-19 is very heavy and obvious, but Vietnam’s major trade partners have quickly been recovering and promoting trade. The increase in vaccination percentage in Vietnam have facilitated early opening and contributing to the growth in recent time, especially in the last six weeks. The correlation between vaccine coverage and economic recovery is that the wider the vaccine coverage is, the faster the economy recovers. Vietnam needs to actively make use of free trade agreements to boost exports and deeply join the global supply chain. The country should re-open in a safe way, ensure healthy and transparent relations between banks and enterprises and take cautions with bad debts.

Resident Representative of the International Monetary Fund (IMF) in Vietnam Francois Painchaud said that Vietnam should create a better balance between financial and fiscal support packages, paying more attention to the spending part besides tax support solutions.

Permanent Vice President of Vietnam Association for Supporting Industries Phan Dang Tuat assessed that supporting businesses have been broken from both output and input supply. From the current situation of the supporting industries, it is necessary to take a deeper look at the economic restructure in general, and the supporting industries in particular.

Expert Cao Viet Sinh, Former Deputy Minister of Planning and Investment speaking at
the Conference. Photo: MPI

Expert Cao Viet Sinh, known as Former Deputy Minister of Planning and Investment, suggested that the Project should be divided into five component programs instead of providing groups of solutions. Because economic recovery and development is a current important issue, it is necessary to have specific implementation programs rather than groups of solutions.

Firstly, the programme on vaccination associated with opening of the economy, includes the enhancement in health facilities, vaccination to achieve herd immunity, reopening and ensuring the effective healthcare system, and flexibly responding to the pandemic. This program must be promoted and completed in the first quarter of 2022. Secondly, the program on business recovery and economic restructure promotion based on economic pillars includes solutions to obstacles, reduction of loan interest rates, restoration of value chains, charging-off debts for potential and advantaged enterprises. Non-for-profit enterprises should be definitively restructured or dissolved; and review loan conditions. All business-related contents such as digital transformation, reduction of logistics costs, etc. should be added into a restructuring program associated with economic autonomy.

Thirdly, the tourism recovery and domestic consumption stimulation is an important program related to consumer loans, cash flow, supports for people, thereby stimulating consumption. Fourthly, the program on mobilizing resources for development has focused on infrastructure, namely on attracting ODA and FDI capital and restructuring public investment. Fifthly, the program is considered as the key to create bases for important decisions. This program pays attention to institutional reforms, improvement of the capacity and efficiency of the Governmental authorities, especially the local authority. From the real pandemic prevention over the past time, it can be seen that the coordination and response of the local authority are still inadequate. Therefore, institutional reforms andenhancement of the local Government’s implementation of are the prerequisites to speed up economic recovery not only in the short term, but also long term and sustainably.

According to Mr. Cao Viet Sinh, besides the five programs, there are conditions on risk management to stimulate the economy. The economic management when reopening has to ensure the macro balance, inflation and bad debts control as well as the rate of business bankruptcy.

Economic Expert Can Van Luc suggested transforming the strategy from dual goals to “multi-objectives” mustensure the healthcare system, social security and economic development capacity. The change of COVID-19 prevention and control strategy has been agreed and consistent, but it is necessary to clarify what “living with the pandemic” is. In addition to classifying the groups of disease spread risks by geography, it is important to compare economic sectors and promulgate a recovery program framework so that localities can use to build local economic recovery programs.

In addition to the more appropriate and quick implemention ofsocial distancing methods, support packages,and immediate solutions to problems related to supporting people and businesses, a new support package has focused on self-employed workers, and increased the enterprises’s ability to access capital. There should be a clear opening schedule for enterpises to prepare workforce, seeking new growth driving force based on green economic development.

Minister Nguyen Chi Dung concluding at the Conference. Photo: MPI

At the conclusion, Minister Nguyen Chi Dung recognized that the Ministry of Planning and Investment will listen to experts’ beneficial and valuable recommendations, then synthesize and research to build a practical and effective Economic Recovery and Development Programme for the 2022-2023 period.

During the pandemic prevention and control period, Vietnam have drawn some socio-economic experience and lessons. Firstly, it is the weak capabilities of the public health system, especially lack of preventive healthcare and grassroots healthcare in unexpected situations, so the healthcare system is confused and passive. Secondly, the social governance, state management capacity, problem-solving ability of ministries at all levels should be improved. Thirdly, people's knowledge, awareness and skills to protect themselves against fluctuations are not prepared and paid enough attention. Fourthly, production and supply of input and output markets depend on a few enterprises or markets, so the economy's self-reliance will be fragile. Fifthly, the market must pay attention to the preventive and reserve capacity to serve production and business activities.

Sixthly, it is time to rely on the strength of the people and the localities. These six issues are important and valuable lessons to review our shortcomings and make more suitable adjustments in the coming time, Minister Dung emphasized.

Regarding vaccination concerned by many experts, Minister Dung said that the Vietnamese Government agreed that the vaccination is the most important, and should be speeded up for prorities, including workers. The Prime Minister issued the Decision No. 1399/QD-TTg dated August 13, 2021 on establishing a working group of the Government on vaccine diplomacy to quickly find sources and increase the vaccination on a large scale. It is expected that there will be more batches of vaccines to Vietnam in October-November 2021, contributing to a wider coverage of vaccination to be enough to inject two doses and re-open faster, helping enterprises and the economy recover faster.

Photo: MPI

In term of economic recovery program, experts said at the meeting that fiscal policy is highly essential in the economic recovery program should be expanded and loosen monetary policy to meet the resources for recovery and development in the coming time. The vaccination are important and decisive, but not only solution, it is necessary to give out overall solutions for public health and grassroots healthcare to ensure proactive in the pandemic prevention, control and treatment, and protect the people’s health. Recommendations and implications for Vietnam are to design comprehensive policies on dealing with both immediate and long-term problems. This must be identified as an opportunity for Vietnam to restructure its economy, including state-owned enterprises, private enterprises and FDI enterprises. This is also a chance to strengthen the healthcare system, medical capacity, domestic production of medical equipment; to accelerate reforms and economic restructure to develop faster towards more sustainable, inclusive and secure.

In term of policies in the coming time, experts said that it is necessary to develop a roadmap for reopening with specific directions for stakeholders to develop their plans; faster implement new policies, focus on weak businesses, disadvantaged groups, the poor; have reforms in enforcement to ensure synchronous implementation at all levels and sectors. Direct support policies play an important role besides indirect support for businesses, people and employees.It is necessary to take the effectiveness of policies into consideration, support production and business activities and limit the reduction of State budget revenues.

Important requirements and recommendation for Vietnam for recovering and developing the economy, adapting to new economic orders and structures as well as Vietnam’s ability to participate in the new orders anddevelopment trends such as green economy, digital economy, digital transformation, building materials industry, enhancing the internal capacity and economic autonomy of Vietnam need to be paid more attention. These are the critical goals and solutions for an economic restructuring to adapt to new orders and structures, effectively carrying out the goal of industrialization and modernization of the country./.

Bao Linh
Ministry of Planning and Investment

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