The government sets the target for 2024 State budget revenue to increase by approximately 5%, and credit to grow by over 15%

HCMC Customs sees a decrease of VND12,000 billion in revenue

The National Assembly's Economic Committee has suggested evaluating the feasibility of the GDP growth target as well as the completion of the entire term's objectives.

Issuing timely policies related to the global minimum tax

Regarding financial matters, the Government's report on the expected economic and social development plan for 2024 during the 6th session of the 15th National Assembly states that there will be a focus on overcoming limitations, and inefficiencies, accelerating the progress of implementing, disbursing public investment capital, the Economic recovery and socio-economic development program, and national target programs starting from the beginning of the year. The aim is to ensure a disbursement rate of public investment capital of over 95% of the plan.

The government will pay attention to improving regulations and legal provisions on investment procedures, processes, and hierarchy. They will concentrate on preparing investments effectively, and enhancing readiness, feasibility, and project implementation capabilities. The government aims to eliminate unnecessary projects, prevent inefficient dispersed investments, and increase the accountability of those in charge of investment decisions, both in determining investment orientations and project investment decisions.

Furthermore, the government has stated that it would effectively increase revenue and save the State budget with efficient revenue enhancement and regular expenditure reduction, collecting the right amounts at the right time, especially in e-commerce and digital-based businesses.

It also aims to thoroughly save routine expenses while closely controlling overspending, public debts, government debts, international debts, and the government's direct repayment obligations within the limits set by the National Assembly.

The Government's report emphasizes that the 2024 State budget revenue estimate will increase by approximately 5% compared to 2023 to prioritize development investments. The government will present to the National Assembly for consideration and allow the continuation of tax exemptions, reductions, and fee reductions. They will issue timely and suitable policies related to the global minimum tax.

Regarding currency issues, the government states that it will continue to actively and flexibly manage monetary policies in a timely and efficient manner, ensuring comprehensive and harmonious coordination with other policies such as fiscal policy that expands sensibly with priorities and focuses on other related policies. The aim is to reduce interest rates for lending.

As for credit, the task is to focus credit on growth drivers (investment, consumption, and exports), and priority sectors, effectively implement existing preferential credit packages, and explore new packages. The goal is to strive for a credit growth rate of around 15% in 2024.

Cutting at least 10% compliance costs

In conjunction with the goals and objectives concerning infrastructure, the Government emphasizes that it will focus on restructuring the economy for genuine and effective growth, enhancing competitiveness, and developing digital and green economies.

In this regard, the Government will continuously improve policies to promote restructuring, enhance management efficiency, allocation, and use of the State budget in the direction of strengthening the central budget's leadership (both revenue and development expenditures) and increasing the proactivity, initiative, and flexibility of local budgets.

The Government will also restructure public investment, particularly foreign borrowings, making procedures more streamlined and efficient. It will concentrate on essential projects that can significantly change situations, transform statuses, and end the trend of dispersed, inefficient investments. Priority will be given to investments in key sectors, pivotal projects, and programs that have a significant impact on socio-economic development.

Concerning enterprises, the Government's report clearly states that it will continue to restructure and improve the efficiency of operations, promoting the investment of State-owned enterprises, especially in large, leading, and influential projects across key economic sectors and new areas. It will also amend the Law on State capital management and usage in enterprises. The focus is on attracting selective foreign investment projects that are closely linked to domestic businesses, participating more extensively in regional and global value chains.

In terms of the business environment, the Government's report emphasizes the goal of continued reduction and simplification of administrative procedures and business regulations. It strives to reduce compliance costs by at least 10% in 2024. There will be a strong emphasis on improving the efficiency of administrative procedure resolution through a one-stop, interlinked mechanism. There will be further upgrades, connections, and data sharing between information systems to serve administrative procedure resolution for citizens and businesses.

Regarding the market, the Government sets the task of significantly developing the domestic market while expanding and diversifying international markets, improving product quality, and effectively utilizing the signed Free Trade Agreements (FTAs). It also aims to actively negotiate and sign new FTAs with a focus on new markets in South America, Africa, and the Middle East, including the United Arab Emirates (UAE). It will support businesses in enhancing their capabilities to participate in global supply chains and intensify efforts to combat smuggling and trade fraud.

To achieve these plans and objectives, the Economic Committee of the National Assembly states that there is a need to enhance the country's self-reliance capacity, consolidate the foundation, ensure macroeconomic stability, control inflation, and enhance economic adaptability, and resilience.

Specifically, it is necessary to strengthen the role of fiscal policies in supporting economic growth recovery. This includes enhancing fiscal and financial discipline, ensuring proper and timely tax revenue collection, and effectively saving on expenditures, especially routine ones. Additionally, it involves controlling overspending, public debt, government debt, and international debt within the allowable limits. Research will continue on the implementation of tax exemptions, reductions, fee extensions, and the land leasing fee.