Prime minister directs to boost consumption, support production and business, and develop the domestic market

Stimulating consumption, supporting production and business, and developing the domestic market

The Prime Minister's directive emphasizes the need to promptly address difficulties in production and business activities, stimulate consumption, and promote the development of the domestic market to contribute to growth, maintain macroeconomic stability, control inflation, and ensure the overall balance of the economy. The Prime Minister has instructed ministers, heads of ministerial-level agencies, government-affiliated agencies, chairpersons of the People's Committees of provinces and centrally-run cities, industry associations, and businesses to focus on implementing several tasks and solutions.

Quickly operationalize investment projects to create new production capacity

Regarding general tasks, the Prime Minister has directed that investment projects that create new production capacity should be put into operation as soon as possible. This includes focusing on reviewing and prioritizing solutions to remove obstacles in the disbursement of public investment funds, credit packages, land resources, and policies that attract social resources for implementing projects in line with the scale and market signals.

Efforts should be made to unblock the domestic market, introduce policies that encourage consumption, and promote investment in sectors where domestic production has strengths and where the domestic market has demand.

Policies should also be reviewed and implemented to support domestic enterprises in joining the supply chain for supporting industrial products of foreign-invested manufacturing and exporting enterprises in Vietnam.

Implement regional connectivity solutions to reduce transportation costs, facilitate the flow of goods between regions, and support businesses in relocating investments to regions with competitive advantages, such as business production premises, abundant labor sources, and low labor costs, to reduce production costs.

Ministries, agencies, and localities should accelerate the application of digital transformation technologies, artificial intelligence (AI), big data, and blockchain technology to continue enhancing administrative reform and simplifying procedures.

Promote domestic market trade promotion, connect supply and demand, support the provision of market information, and provide legal advice to small and medium-sized enterprises.

Form purely Vietnamese product value chains

The Prime Minister has also assigned specific tasks to each ministry and locality. The Ministry of Industry and Trade is to promote solutions that link production with the distribution of goods, strengthen connections within product value chains in accordance with quality and food safety regulations, and form purely Vietnamese product value chains. Continue to vigorously implement activities to connect the supply and demand of goods to promote the consumption of domestically produced goods through traditional and modern distribution channels.

Organize regional and national promotional programs, coordinate with localities to enhance supply and demand connection activities, distribute OCOP (One Commune One Product) products, and bring goods to remote areas and industrial zones to stimulate domestic consumption.

Encourage e-commerce platforms operating in Vietnam to implement programs to consume domestically produced products. Launch a movement to consume Vietnamese goods and local products through Vietnamese and local product stalls on e-commerce platforms. Organize activities to promote regional connectivity in e-commerce and cross-border e-commerce trade promotion activities with countries in the region and major import markets.

Organize programs and events to support people and businesses in applying digital technology, developing new models in online trading, and supporting Vietnamese businesses in connecting and expanding the market for domestically produced products.

Connect domestic businesses to participate in the supply chains of foreign-invested enterprises in Vietnam and major global companies to promote the consumption of domestically produced goods.

Implement solutions to assist businesses in handling issues related to trade defense investigations, origin fraud, technical barriers related to the environment, sustainable development, and green transition to promote the export of Vietnam's key export products to major markets such as China, the EU, the US, Japan, and South Korea.

Accelerate the disbursement of funds for trade promotion programs

The Ministry of Finance is tasked with administering an appropriately targeted, focused, and flexible fiscal policy, coordinated harmoniously with monetary policy and other macroeconomic policies to promote growth, stabilize the macroeconomy, control inflation, and ensure the overall balance of the economy.

The ministry is also directed to accelerate the disbursement of funds for implementing trade promotion programs of ministries, sectors, and localities to promote the consumption of domestically produced goods.

Collaborate with the Ministry of Industry and Trade to develop solutions to closely monitor imports through e-commerce in line with Vietnam's international commitments. Collaborate with relevant ministries and agencies to review and propose tax policies for investment projects that produce goods to replace imports.

Increase loans for consumption and livelihoods

The State Bank of Vietnam is directed to operate a proactive, flexible, timely, and effective monetary policy that is harmonized with fiscal policy and other macroeconomic policies. Manage credit in line with macroeconomic developments, and operate exchange rates flexibly according to the market to stabilize the foreign exchange market, contributing to supporting economic growth and controlling inflation. Continue directing the implementation of solutions to promote credit growth, focusing credit on production, business, priority sectors, and growth drivers.

The State Bank of Vietnam is also instructed to direct credit institutions to study and develop credit products and banking services specifically for the consumption sector, increasing loans for consumption and livelihoods. Promote lending through electronic and online methods; simplify loan and consumer credit procedures, making it easier for people and businesses to access loans to boost the consumption of domestically produced goods. Strengthen the inspection and supervision of credit institutions to ensure that state policies reach people and businesses promptly and correctly.

Accelerate the implementation of preferential credit programs, such as the VND140 trillion credit package for social housing development; the project "Investing in the construction of at least 1 million social housing units for low-income people and industrial zone workers from 2021 to 2030"; and expand the VND30 trillion loan program for the forestry and fisheries sectors.

Connect and support the consumption of agricultural products in key production areas

The Ministry of Agriculture and Rural Development is directed to lead and coordinate with localities to promote production, consumption, and export of agricultural products in key farming and breeding areas. Collaborate with the Ministry of Industry and Trade and the People's Committees of provinces and cities to effectively implement trade promotion programs, build brands, and connect and support the consumption of agricultural products in key production areas; promote green, clean production, and ensure food safety and hygiene.

Simultaneously, the Ministry of Agriculture and Rural Development will coordinate with relevant agencies to address difficulties related to the announcement and conformity assessment of veterinary drugs; promote the opening of official export markets for agricultural products to neighboring markets such as China; and urgently negotiate with Chinese authorities to reduce the inspection rate of plant and animal products to facilitate the flow of agricultural goods into the Chinese market.

Implement appropriate policies to promote safe and sustainable real estate market development

The Prime Minister has assigned the Ministry of Construction to lead and coordinate with ministries, sectors, and localities to implement appropriate policies to promote the safe and sustainable development of the real estate market and housing, especially social housing, to stimulate the consumption of domestically produced construction materials such as cement, steel, bricks, and tiles.

The Ministry of Planning and Investment is tasked with continuing to implement solutions to improve the investment and business environment, simplify investment procedures and administrative processes to facilitate investment and business activities for people and businesses; coordinating with relevant ministries and agencies to research and propose incentive policies for investment projects that use domestically produced materials and goods. Regularly review and monitor the implementation of public investment projects and take measures to address delays in project implementation.

Remove difficulties related to land for attracting and expanding production and business investment

The People's Committees of provinces and centrally-run cities are instructed to implement solutions according to the law and local conditions to remove difficulties related to land for attracting and expanding production and business investment of enterprises, thereby creating new production capacity.

Organize the domestic market and traditional and modern distribution channels well to facilitate the consumption of goods; strengthen regional and local connectivity to exchange potentials and strengths, with a focus on logistics connectivity to facilitate the transportation of goods.

Lead and coordinate with relevant ministries, sectors, and agencies to implement trade promotion programs, stimulate consumption, and support the sale of locally produced goods, especially at the end of the year, to maximize the domestic market. Direct the distribution system to ensure the supply of essential goods.

Reduce costs, lower product prices

The Prime Minister requires industry associations to proactively capture information, market demand, and the difficulties faced by member businesses in production and consumption to promptly propose support measures to the relevant authorities.

Corporations and state-owned enterprises are directed to innovate management, strengthen research and development, enhance competitiveness, reduce costs, lower product prices, and improve operational efficiency; increase the use of raw materials and products of domestically produced goods; and coordinate with ministries, sectors, and localities, and industry associations in implementing promotion and consumption stimulation programs for products and goods.

Direct member businesses to develop effective production and business plans, enhance product competitiveness, focus on exploiting domestic market areas where demand is high but supply is still limited; provide information and communication to businesses on investment activities in the production of goods that replace imports.