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Tuesday, August 16, 2022

Socioeconomic recovery, development program launched

By Van Phong

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HCMC – The Government has issued a resolution on socioeconomic recovery and development and the deployment of the National Assembly’s Resolution 42/2022 on fiscal and monetary policies to help the economy overcome the difficulties caused by Covid-19.

The program is aimed at recovering and boosting production and business activities, prioritizing important sectors, reaching an annual GDP growth rate of 6.5%-7% in 2021-2025 and keeping the jobless rate in urban areas at below 4%.

In addition, the program will help stabilize the macroeconomy, save costs, facilitate enterprises and residents, fight the pandemic effectively and ensure social welfare for residents, especially disadvantaged laborers, the poor and those hit by the pandemic.

Beneficiaries of support policies include pandemic-hit residents, laborers, enterprises, household businesses and cooperatives.

Support policies will be mainly valid in the 2022-2023 period, but the validity of some policies may be extended, depending on the developments of the pandemic.

The economic recovery and development includes five main groups of missions and solutions.

Specifically, the country will reopen the economy in association with improving the healthcare capacity. An anti-pandemic program in 2022-2023 will be launched and deployed promptly and effectively, while the roadmaps to resume tourism, air transport and entertainment services must be worked out.

Regulations on the transport of laborers and goods must be reviewed and amended to maintain the ceaseless operations of enterprises.

Moreover, the competent agencies must accelerate the disbursement of capital for new investment projects, upgrade medical facilities, improve the quality of medical workers and produce local Covid vaccines and drugs.

The Government will support laborers returning to the labor market in paying their boarding house rentals with VND1 million per month each and those working in enterprises, VND500,000 each.

The Government will provide a maximum of VND2 trillion in the interest compensation and management fee for the Vietnam Bank for Social Policies and VND3 trillion to support borrowers of loans with an interest rate of over 6% per year and disbursed in 2022-2023.

In addition, the Government will continue allocating capital to the Vietnam Bank for Social Policies so that employers can borrow loans to pay their employees’ salaries.

The connectivity of the labor demand and supply nationwide on an online manner should be enhanced.

Under the program, training and vocational centers will be upgraded and expanded, while the digital transformation in the sector will be conducted.

The Government will continue employing policies to support the recovery of enterprises, cooperatives and household businesses, such as reducing and exempting taxes and fees and extending the tax payment deadlines.

Specifically, the Government will reduce the value added tax by two percentage points in 2022, applicable to goods and services which are currently subject to the 10% value added tax

Furthermore, the environmental protection tax on jet fuel and the registration fee for locally assembled or manufactured cars will be halved, while the State-owned land rents will be cut by 30%.

The Government will continue extending the deadlines of the corporate income, personal income, value added and special consumption tax payments in 2022.

Loans that enterprises, cooperatives and household businesses borrow from commercial banks will be entitled to a lending rate reduction of 2% per year in the 2022-2023 period.

Besides these policies, the Government will stabilize the capital for medium- and long-term loans and asked credit institutions to reduce the lending rates by 0.5%-1% in 2022-2023.

The charter capital of joint stock commercial banks in which the State holds over half of the charter capital will be increased, using their aftertax profits, and charter capital hike for the Vietnam Bank for Agriculture and Rural Development will be sourced from the State budget.

Additionally, obstacles in the spending and management of the science and technology development fund in enterprises will be removed to facilitate firms to renew technologies, incubate scientific and technological firms, commercialize scientific research and technology development results, and purchase equipment and machines for technology development, serve the production of enterprises and business activities.

The electricity and water prices will be cut further.

The Government will also prioritize capital for urgent projects whose investment will be disbursed quickly and which can be completed in the 2022-2025 period.

Some important projects, such as the North-South expressway, roads connecting the northern mountainous and Central Highlands regions with the central region, expressways in the southeastern region and the Mekong Delta, traffic systems linking seaports, border gates, industrial parks and clusters, digital transformation, healthcare infrastructure and climate change adaptation, were expected to be completed as the earliest possible time.

The Vietnam Public-Utility Telecommunication Service Fund will be used efficiently to develop telecom infrastructure and the Internet.

The Government will also boost the administrative reform and improve the investment environment. It will continue reviewing and removing obstacles in policies and regulations that have hindered production and business activities.

Moreover, the Government will encourage innovations, digital transformation and the digital, green and circular economy development, and remove obstacles in policies and regulations relating to social housing projects.

The State management capacity will be improved, while inspections will be enhanced to detect and address violations.

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