Removing economic bottlenecks
  • | VOV | February 08, 2013 07:04 PM

Senior economic expert Tran Hoang Ngan believes that effectively implementing Government solutions will help Vietnam’s economy develop steadily and fulfil major targets set for 2013.

Businesses are trying to clear out inventories to maintain production
In January 2013 the government issued two resolutions proposing a number of solutions for revamping business production, shoring up ailing markets and settling bad debts.

According to Ngan, a member of the National Assembly Committee for Economic Affairs, the resolutions resulted from the government’s examination of the economy’s weaknesses in 2012, taking into account the impact of the global economic recession.

The national economy only grew five percent last year, the lowest rate in 13 years and the second annual reduction in a row.

Although inflation was kept below 2011 levels, boomerang inflation and macroeconomic instability remain threats.

Businesses are struggling to clear out inventories, free themselves from bad debts and warm up the real estate market.

People, especially the poor, social policy beneficiaries and low-income earners are still living hard lives.

In the two resolutions, the government has worked out immediate and long-term solutions for speeding up economic restructuring, focusing on the process underway in State corporations, economic groups, public investment, commercial banks and the financial market.

The government underlined the need to remove economic bottlenecks restricting goods exchange, hindering the sale of large amounts of unsold goods, and limiting business production capital flows, adding to bad debt pressure and hurting employment opportunity generation.

Ngan says tax reductions, tax relaxation and tax refunds are considered effective remedies for businesses in difficulty.

To unfreeze the property market, the government agreed to offer preferential credit arrangement to house buyers, including loans with low interest rates and longer payment deadline. It also decided to re-examine and adjust property projects close to market needs.

To firm up the macroeconomic stability and control inflation, the government will apply a tight fiscal policy, practice thrift and closely monitor State budget spending.

It will also monitor market fluctuations closely, identifying it as crucial to inflation containment in Vietnam.

The senior economic expert concurs that these solutions meet the economy’s current practical requirements.   

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