National Assembly discusses stimulating economic development and the budget

May 29, 2024 - 17:14
Deputies of the National Assembly discussed the economic and social development situation, and what could be done to stimulate the economy, as well as the state budget.
NA Deputy Hoàng Quốc Khánh from Lai Châu Province speaks at the session. — VNA/VNS Phạm Kiên

HÀ NỘI — The deputies of the National Assembly continued their session yesterday, discussing the economic and social development situation, as well as the state budget.

NA Deputy Hoàng Quốc Khánh, representing Lai Châu Province, stressed the vital importance of fostering a stable business environment and developing investments to meet this year's economic growth target of 6-6.5 per cent.

He emphasised the need to build trust among businesses to drive production and commercial activities forward.

Telling deputies there needs to be rapid implementation of new policies to assist businesses in overcoming obstacles and fostering growth, particularly in the form of legislative initiatives which impact production.

He echoed the government's suggestion to expedite the enactment of laws such as the Land Law, Housing Law, Real Estate Business Law and Credit Institutions Law to address fundamental structural issues.

The government and ministries need to fully and synchronously prepare a system of guiding documents, so that laws can be implemented immediately, he said.

Deputy Khánh proposed continuing administrative procedure reform to ensure transparency, accountability and effective inspection and supervision. He highlighted the role of responsible leadership and the encouragement of innovative and dynamic officials in promoting common interests.

The session also addressed the limited activities of businesses and the attraction of private sector investment, as highlighted by deputy Nguyễn Văn Thi from Bắc Giang Province.

Despite reduced interest rates for loans, commercial banks' credit capital is underutilised.

Based on the Government's findings, investments from sources outside the state sector in 2023 amounted to just one fifth of the total growth seen between 2015 and 2019. There was a notable rise in both temporarily suspended and dissolved businesses compared to the previous year.

In the first four months of 2024, for the first time in five years, the number of new businesses entering the market was lower than the number exiting.

The government was urged to undertake comprehensive assessments and implement coordinated strategies to stimulate credit sources, alleviate business challenges and bolster growth.

Deputy Nguyễn Hữu Thông from Bình Thuận Province emphasised the significance of addressing the increasing number of businesses exiting the market.

Global challenges have impacted businesses' order volumes, their capacity to secure capital, and their resilience have been worn down to near exhaustion levels post-pandemic, he said. Furthermore, policies and regulations remain inconsistent and incomplete, while administrative procedures continue to be cumbersome

He put forward suggestions to diversify export markets, address labor shortages, enhance capital access, streamline administrative procedures and resolve land-related issues.

During the morning discussion, NA member Trần Hoàng Ngân of HCM City suggested empowering localities for a proactive response to challenges like increased business withdrawals, pending investment projects and inefficient public asset use.

He argued that decentralisation and special policies are necessary to address evolving global dynamics, including price management and streamlining public investments.

He pointed out the urgent need for special policies to address swiftly changing price dynamics and streamline public investment procedures, including adjusting total investment capital and local planning. He also emphasised the diverse forms of the current global economy, which could disrupt supply chains.

Considering these factors, Ngân advocated for careful management of the economy's openness, with a focus on the domestic market. He particularly emphasised prioritising trade with domestic and neighbouring markets, as well as those within the ASEAN region.

Related to the implementation of the three national target programmes, deputy Tráng A Dương from Hà Giang Province, praised the Government's efforts to save costs and combat wastefulness in 2023, but highlighted remaining issues in implementing the programmes.

He noted delays and inefficiencies in fund allocation and disbursement, with disbursement rates well below targets, especially for the programmes targeting rural development, poverty reduction and ethnic minority areas.

Central budget allocation for the programmes has been slow, with disbursement rates reaching only 46 per cent of the plan, including the extension of 2022 funds to 2023.

As of June 31, 2023, the disbursement rate for central budget funds for the New-Style Rural Area Development national target programme was only 9.17 per cent of the plan.

The sustainable poverty reduction national target programme reached 6.53 per cent and the socio-economic development national target programme for ethnic minorities and mountainous areas achieved 12.3 per cent.

Overall, lawmakers emphasised the importance of efficient fund allocation, timely disbursement and targeted investment to address remaining challenges in implementing national programmes and critical infrastructure projects.

Recent assessments of the national economic and social development plan indicate a sustained economic recovery, with a focus on strengthening institutions and refining policies.

This was the shared view among voters in Hải Phòng City after discussions the 7th session of the 15th National Assembly yesterday.

In early 2024, amid global economic instability marked by erratic gold and foreign exchange rates and a sluggish real estate market, proactive guidance from the National Assembly and the Government led to the adoption of measures to address challenges, spur growth, stabilise the macroeconomy, control inflation and maintain economic stability, according to Đặng Thúy, vice chairman of the Hải Phòng Literature and Arts Association.

Voters told the National Assembly and the Government they need to continue adopting flexible policies, tailored to the prevailing circumstances, with a focus on promoting growth, maintaining macroeconomic stability, controlling inflation and ensuring major economic balances.

Regarding labour rights, Phạm Ngọc Tuyền, former Chairman of the Trade Union of Việt Nam Maritime University, noted the continual empowerment of the working class, despite many businesses facing difficulties stemming from the global downturn, leading to workforce reductions and challenges in meeting workers' living needs despite regional minimum wage increases. He urged supportive policies from the National Assembly to assist both businesses and workers during this challenging period.

During the parliamentary discussion, some NA deputies urged the Government to ensure the serious implementation of government decrees and prime ministerial directives aimed at supporting proactive, innovative and responsible officials for the common good.

However, despite government efforts, delegate Trương Trọng Nghĩa from HCM City highlighted lingering indecision at various levels, leading to delays in project approvals, permit issuance, and citizen/business complaint resolution, hindering economic and social development. He proposed clearer guidance for issued decrees.

Other NA deputies suggested mechanisms and policies to protect officials and streamline administrative procedures that impede businesses, aiming to awaken local development potential.

They recommended refining anti-corruption regulations and lenient policies for officials addressing obstacles in local development. Clear regulations, he argued, would combat hesitancy and any fear of responsibility. — VNS