This comment was made by Chairman of the Economic Committee Vu Hong Thanh at the press conference of the Vietnam Socio-Economic Forum 2023, with the theme "Enhancing endogenous capacity, creating momentum for growth and sustainable development", on the morning of September 18.

According to Mr. Thanh, in the first 8 months of the year, the macro economy was stable, core inflation was controlled when it increased by only 3.1%, while many large economies are facing high inflation. Major economic balances such as public debt, foreign debt, and government debt are still under control and below the ceiling set by the National Assembly. The national credit rating has improved as last year Vietnam was the only country in ASEAN to have its credit rating upgraded by Moody's.

"Vietnam's economy is still a bright spot in the overall gray picture of the world economy," said Chairman of the Economic Committee Vu Hong Thanh.

According to the Government's report, GDP in the second quarter increased by 4.14%, 3.28 percentage points higher than the first quarter. Growth in the following quarter was higher than the previous quarter, according to Mr. Dung, helping to improve the GDP growth rate in the first half of this year, reaching 3.72% for the whole year.

More than 14,000 new businesses were established in August, an increase of nearly 18% over the same period in 2022. In the first 8 months, the number of new businesses increased by 2.3% over the same period, with 103,700 businesses. The service sector grew rapidly. Total retail sales of goods and consumer service revenue in August increased by 7.6% over the same period last year.

The Ministry of Planning and Investment assessed that the economy is gradually regaining growth momentum , but it is difficult to change quickly in the short term.

However, at today's press conference, Chairman of the Economic Committee Vu Hong Thanh said that internal bottlenecks are also arising in the economy, such as some growth drivers (investment, export, consumption) slowing down, which need to be resolved.

Public investment disbursement in the first 8 months reached over 42.3% but was still slow; business health was eroded after the Covid-19 pandemic when production was difficult and orders were lacking. The bond market, which needs to be resolved faster, is still difficult when accessing credit.

In addition, Deputy Head of the Central Economic Commission Nguyen Duc Hien said that it is forecasted that this year some socio-economic development indicators reflecting growth quality will not be completed, such as the proportion of processing and manufacturing industry in the gross domestic product (GDP) or labor productivity.

"Growth is good, but the root must still be long-term labor productivity," said Mr. Hien, adding that enhancing endogenous capacity and finding new driving forces for growth and sustainable development will be discussed and advised by experts and delegates attending the forum.

Regarding the value-added tax (VAT) policy, at the meeting in June, the National Assembly resolved to reduce 2% on goods and services subject to 10% tax until the end of 2023, except for real estate, banking, securities, and insurance.

When asked whether or not to extend the VAT reduction, Mr. Vu Hong Thanh said that through a preliminary survey, people and businesses still want to extend this policy in the future. He said that the domestic market is an important factor, so extending this policy will support people and businesses, stimulate general economic growth, and domestic consumption.

In 2022, the 2% reduction in VAT will help businesses and people earn about VND 44,500 billion, contributing to reducing the cost of goods and services, promoting production and business and creating more jobs for workers. Total retail sales of goods and consumer service revenue in 2022 increased by 19.8% over the previous year. Domestic VAT collection did not decrease but increased by 10% over the same period.

Regarding the amendment of personal income tax, including increasing the family deduction level, Mr. Thanh said that many opinions have been raised but the Finance and Budget Committee has not yet received this proposal. Therefore, it is the responsibility of the National Assembly to urge.

Vnexpress.net