NA DISCUSSES SOCIO-ECONOMIC DEVELOPMENT IN 2023, THE ANTICIPATED PLAN FOR 2024

The National Assembly (NA) continued its 6th session on Tuesday, discussing the results of implementing the socio-economic development plan for 2023 and the anticipated plan for 2024.

Vice Chairman of the NA Nguyễn Đức Hải led the discussion.

At the meeting, NA deputies highly valued the Government’s efforts in providing support to businesses. However, Deputy Dương Văn Phước from central Quảng Nam Province pointed out that businesses were facing various challenges, such as difficulties in accessing capital, heavy tax burdens, and volatile prices.

Regarding capital access, especially for long-term loans, the borrowing conditions were stringent, and the procedures were complex. Most businesses could only access short-term loans, he said.

In the challenging economic conditions, business revenue collection was slow, and with substantial inventories, banks did not consider these as collateral, creating significant barriers to capital access, he added.

Phước noted that the current tax policies were not supportive of businesses. He highlighted the fact that businesses were burdened with taxes, not only due to the tax rates but also the complexity in tax calculations.

He cited an example from central Quảng Nam Province, in which a golf course business could earn an annual revenue of VNĐ100 billion (US$4.07 million) on his over 60 hectare-golf course. But this business had to pay VNĐ45 billion ($1.83 million) in taxes, which posed significant challenges, and it had repeatedly raised concerns about the unfair tax calculations.

Nguyễn Đại Thắng, deputy head of the northern Hưng Yên Province deputies, emphasised the need for a stronger push in public investment to boost economic demand and achieve growth targets. He proposed enhancing accountability in the allocation of investment funds and clear regulations for oversight to prevent inefficient project funding.

He also suggested that the Government should stabilise construction material prices, particularly for infrastructure projects, and resolve issues in the real estate market. This would help develop affordable housing options for the public and create a sustainable real estate market.

On the other hand, Nguyễn Ngọc Sơn, a permanent member of the Committee for Science, Technology, and Environment, expressed his concern about the declining primary drivers of growth, including exports, investments, and consumption. He noted that public investment disbursement had not met expectations.

In this context, foreign investment was sluggish, and private investment, while crucial, had only increased by 2.3 per cent, which was one-sixth of the pre-pandemic level of 17.3 per cent.

Domestic consumption had shown signs of recovery but was not yet stable, with a decrease from 13.9 per cent in the first quarter to 7.3 per cent in the third quarter. Exports were estimated to reach US$466.2 billion, an 8.2 per cent decrease, marking the first negative growth since 2019.

Sơn also mentioned credit growth and non-performing loans, citing the Government’s reports. Credit growth was at 6.29 per cent as of October 11 compared to the previous year, which was slower than expected. The ratio of non-performing loans by June stood at 3.36 per cent, higher than the targeted rate of below 3 per cent.

However, Sơn emphasised that the report did not provide detailed information on credit growth in specific sectors. He pointed out that concentrated credit growth in the real estate sector could lead to increased bad debts due to oversupply and a lack of public trust.

Therefore, he recommended that the Government thoroughly analyse this issue, carefully consider relaxing lending conditions, and develop solutions to remove bottlenecks and support production and business activities. This would help to significantly boost economic growth and control credit risks in sectors with potential hazards.

Speaking at the meeting, Vice Chairman of the NA Hải suggested that according to the agenda, the NA would continue discussing socio-economic issues and the budget on Wednesday.

The Governor of the State Bank, the Minister of Health, the Minister of Education and Training, the Minister of Finance, and others would discuss these matters, he said.

Source: VNS