PM asks to foster macroeconomic management, firm up confidence of people and businesses

Prime Minister Phạm Minh Chính speaks at the Government's meeting on Tuesday. — VNA/VNS Photo

Prime Minister Phạm Minh Chính asked ministries and Government agencies to maintain flexible and effective policy responses to ensure macro-economic stability and strengthen the confidence of people and businesses amid growing challenges in both domestic and international markets.

In the Government’s meeting on fiscal, monetary and macro-economic polices at the end of 2022 and early 2023 on Tuesday, the PM stressed that the domestic economy is facing many difficulties and challenges, especially since late October, along with severe strategic competition around the world and the hawkish anti-inflation policies of other countries.

Prices of raw materials and fuel continued to be volatile while Việt Nam's major export markets are being narrowed following the slowdown of the global economy.

In the domestic market, after two years of the COVID-19 pandemic, the resilience of the economy, people and businesses has been exhausted.

The Government has reviewed and taken measures to fix operations of the stock and corporate bond markets, banking and real estate sectors to improve the transparency, safety and health of these sectors, ensuring the legitimate interests of people and businesses.

These measures, along with serious handling of violations, have had a certain impact on the market operation and investor sentiment, but according to the Prime Minister, it is “must-do” work.

Recently, the Government has established three working groups dealing with credit liquidity led by Deputy Prime Minister Lê Minh Khái, the real estate market headed by the Minister of Construction Nguyễn Thanh Nghị and corporate bond market led by Minister of Finance Hồ Đức Phớc.

Drastic actions by the Government, ministries and localities have helped stabilise the market and restore investor confidence, the PM said.

More brave and effective

The Prime Minister noted that Việt Nam will likely face a tougher year in 2023 with more difficulties and challenges. Therefore, the direction and administration need to be braver, more effective and more coordinative to handle situations.

In addition to effective policy implementation, he asked Government agencies to continue watching the situation and developments of the stock, corporate bond and real estate markets. He assigned Deputy Prime Minister Lê Minh Khái to direct the development of a decree amending many regulations related to these markets.

In addition, issues related to production and business promotion, product and market persification, supply chains and technology innovation, investment, trade and tourism promotion also need to be addressed efficiently.

Regarding monetary policy, the PM requested the central bank to manage monetary policy flexibly to ensure liquidity, stabilise the banking system, find the balance between the exchange rate and interest rate, and control inflation and promote growth.

He also ordered the central bank to increase the credit limits rationally and effectively, concentrating credit for three strategic breakthroughs including investment, export and consumption, meanwhile at the same time strengthening supervision and inspection to ensure credit will go to the right targets, avoiding corruption and profiteering.

The State Bank of Việt Nam proposed to amend Decree 31 on interest rate support from the State budget for loans of enterprises, cooperatives and business households for better implementation and at the same time reviewing real estate projects and having policies to support social housing buyers.

Regarding fiscal policy, to further accelerate the disbursement of public investment, relevant agencies and localities shall review the disbursement progress monthly and make timely adjustments according to the guidance of the Government.

The Ministry of Finance continues to study and propose reduction and extension of taxes, fees and charges for people and businesses. The authority also needs to develop a reasonable price policy for fields such as aviation, medicine, medical equipment, petroleum, respecting competition rules, supply and demand, but sustaining State management in place to stabilise the market if necessary.

The PM also directed the Ministry of Labour, Invalids and Social Affairs to carefully re-evaluate the labour market, avoid the disruption in the labour supply chain, take effective and appropriate measures to rebalance the supply and demand in the labour market, and develop immediate policies to support the unemployed, especially during Tết (Lunar New Year).