Flexibly adjust financial policies to effectively mobilize and allocate resources for socio-economic development

Many financial policies aim to attract investment resources for green growth

Overview of the 2023 Financial Forum.

Fiscal policies are quite comprehensive, contributing to macroeconomic stability

Vietnam Financial Forum 2023 with the theme "Financial policies to overcome challenges towards sustainable development" is jointly held by the Ministry of Finance and the German Agency for International Cooperation (GIZ), the European Union (EU), German Federal Ministry for Economic Cooperation and Development (BMZ) on the morning of November 30. Deputy Minister of Finance Cao Anh Tuan attended and delivered the opening speech.

At the opening of the Forum, Deputy Minister Cao Anh Tuan said that, the world situation in 2023 has seen more complicated, unpredictable, and more challenging than forecast; slow global economic growth; high inflation; tight monetary policies and high interest rates maintained by major economies; huge global public debt; financial, currency, and real estate markets having many potential risks; dropped export and import activities; Global energy and food security facing many challenges.

In the domestic market, besides great achievements after more than 35 years of innovation, Vietnam faces challenges in implementing socio-economic development goals. The production and business environment continues to suffer from difficulties due to the impacts of the Covid-19 pandemic; the competitiveness and resilience of the economy are still limited; Diseases, natural disasters, droughts, storms, and floods see complicated development, causing heavy damage in many localities...

Besides, Vietnam is one of countries in terms of economic openness, while Vietnam's major economies, trade and investment partners facing slow recovery, falling consumer demand, increasing protection barriers have made significant impact on the domestic economy. Along with that, some contents of the 2022 - 2023 socio-economic recovery and development program are still implemented slowly; Inflation increases in the context of rising commodity prices and global inflation; Public investment disbursement is still slow; Potential bad debt is still a challenge.

Deputy Minister of Finance Cao Anh Tuan speaks the forum.

“Responding to the situation, the Ministry of Finance has advised the Government and the National Assembly on solutions to adjust financial policies flexibly and consistently with other monetary and macro policies to support businesses and people, stabilize the macro economy, promote socio-economic recovery and development towards sustainable development,’’ Deputy Minister Cao Anh Tuan said.

Regarding state budget revenue policies, the tax policy system towards green growth and sustainable development has focused on two groups of policies, including policies on limiting acts causing environmental pollution ( such as environmental protection tax, special consumption tax, import tax, natural resources tax, environmental protection fee for emissions...); policies on supporting and encouragement for environmental protection activities, and pollution and climate change reduction (such as corporate income tax, value added tax, special consumption tax, export-import duty, registration fees). In addition, the Ministry also provides polices on exemption, reduction and extension of taxes, fees, charges, and land rent.

The policies on State expenditure have given priority on green growth, environmental protection. Public investment for green growth has been integrated into investment priorities for sectors, localities and target programs.

In addition, the control of state budget spending is guaranteed, problems are promptly resolved, and the disbursement of public investment capital is accelerated. Balancing the central budget and local budget is guaranteed.

Deputy Minister Cao Anh Tuan emphasized that financial policies have been quite comprehensive and timely, contributing to stabilizing macroeconomy, controlling inflation, guaranteeing major balances. GDP growth in the third quarter reached 5.33%, and 4.24% in the first nine month of the year. The 10-month average consumer price index increased by 3.2%. The enterprise's production and business activities have been restored and increasingly developed.

Facing the difficulties and challenges of the economy, many international organizations have forecast that Vietnam's economic growth in 2023 may be at 4.5-5.8% and increase to 5.5-6.5% in 2024. Inflation is controlled at 3.0-3.8% in 2023 and may increase to 4.71% in 2024.

Challenges create pressure for economic recovery and growth

However, Deputy Minister Cao Anh Tuan also said that in the coming time, Vietnam will face many risks and challenges due to slow global economic growth, high inflation, and decline in import demand from major trading partner countries; trend of tightening monetary policy; rising public debt and increasingly decreasing fiscal support for the economy.

In addition, internal challenges will also create pressure on the domestic economic recovery and growth. The trend of green and sustainable economic development; circular economy; digital economy; responding to natural disasters, climate change..., and the implementation of tasks in Central resolutions on promoting industrialization and modernization of the country, developing regions, innovating growth models..., require Financial policies must be flexibly and appropriately adjusted to effectively mobilize and allocate resources for sustainable socio-economic development.

Vietnam Financial Forum 2023 with the theme "Financial policies to overcome challenges towards sustainable development" is organized to exchange and discuss on initiatives, solutions to implement major financial and state budget orientations in the coming time in accordance with the Financial Strategy to 2030.