Effectively control fiscal and monetary policy : Deputy Prime Minister and Minister Ho Duc Phoc

	Flexible, cautious monetary policy management bears fruit
	PM chairs meeting on fiscal, monetary policy management

Deputy Prime Minister and Minister of Finance Ho Duc Phoc. Photo: National Assembly

Effective and reasonable coordination

Reporting to the National Assembly in the question-and-answer session on the banking sector under the 8th Session on November 11, 2024, Deputy Prime Minister and Minister of Finance Ho Duc Phoc said that when the economy increases or decreases, it will directly affect the system of credit institutions and the state budget.

“The management of fiscal and monetary policies has been implemented effectively and reasonably. The monetary policy has been managed proactively, promptly, flexibly and effectively; the fiscal policy has been implemented in an open and reasonable manner, thereby achieving positive results and exceeding the revenue and higher than the previous year”, the Deputy Prime Minister and Minister said.

Accordingly, in the past 4 years, the state revenue has exceeded about VND1 trillion, including reducing taxes and fees worth about VND800,000 billion for businesses and people, meaning that under normal conditions, the state revenue increased revenue by about VND2 million billion.

This year, GDP reaches about 7%, the consumer price index (CPI) is about 3.88%, public debt accounts for 37% of GDP. The state revenue increases by 17.78% year-on-year, meeting 99.4% of the estimate.

Currently, the State revenue increases by VND 255,216 billion compared to the previous year. It is expected that in 2024, the revenue expects to exceed VND300,000 billion, thereby adding capital for the economy and investing in infrastructure.

This year's monetary policy has stabilized the exchange rate, resolved 2 “zero-dong” banks and prepared to handle two more “zero- dong” banks to stabilize the system and better serve the economy.

Continue to combat gold smuggling

Deputy Prime Minister and Minister Ho Duc Phoc said that, regarding the control of gold invoices, following Decree 123 dated October 9, 2020 of the Government and Circular 78 dated May 2, 2003, the Ministry of Finance has regularly directed the Tax authority and issued five documents to instruct tax declaration and payment.

According to the Deputy Prime Minister and Minister of Finance, the management of invoices of gold-trading companies and gold shops does not have any difficulties or problems.

Regarding the handling of violations, some market surveillance teams have inspected and temporarily suspended gold shops for failing to prove the source of raw materials.

However, the Deputy Prime Minister and Minister emphasized that the enforcement authorities will only handle gold shops if detecting that these shop trade smuggled gold. If they cannot prove that the gold is smuggled, they will not have the right to handle the gold shops, because the source of gold raw materials can also be inherited or reserved.

Deputy Prime Minister and Minister Ho Duc Phoc said that the State Bank revises Decree 24/2012/ND-CP regulating gold business activities, focusing on gold import-export and business activities; as well as contents related to tax incentives for development of domestic goods, creating conditions for importing input materials for production and for exporting gold jewelry.

National Assembly delegates attend the meeting. Photo: National Assembly

Regarding the gold management, the Deputy Prime Minister and Minister said that recently, gold bars have increased by 18 million/tael (up 25% compared to the world gold price).

The high increase in the world gold price, the supply smaller than demand, low bank interest rates, frozen real estate, difficult production and business, risky privately placed bonds are reasons for gold to become a shelter for idle money.

Regarding the upcoming solution, the Deputy Prime Minister and Minister of Finance has proposed three solutions. The first is to direct the implementation of legal and transparent buying and selling. The second is to apply information technology to manage gold stores and companies.

According to Deputy Prime Minister and Minister Ho Duc Phoc, not only mobilizing domestic capital but also using foreign capital, ODA capital, public-private partnership (PPP) ... to help the economic scale increase by 3-4 times to the current scale of about US$500 billion in the near future.

The third is to continue to fight smuggling.

It is necessary to promote production and business activities, improve capital flows for development, amend Decree 24 so that gold is not a measure of currency, but a precious metal, and a shelter for idle money.

The Deputy Prime Minister and Minister said that in the near future, the demand for investment in the economy is very large, especially the demand for investment in infrastructure, including transport infrastructure, high-speed railways, climate change response programs, equity in the energy transition.

Therefore, a large amount of credit will be provided to the economy, promoting the real estate market, so the stock and bond markets will share with credit institutions and monetary policies.