Paving the way for a successful 2022

By Tran Quoc Phuong - Deputy Minister of Planning and Investment

In Resolution No.32/2015/QH15 on the 2022 Socioeconomic Development Plan adopted by National Assembly Chairman Vuong Dinh Hue, GDP growth must reach 6-6.5 per cent, GDP per capita at $3,900, the proportion of processing and manufacturing industry in GDP at 25.5-25.8 per cent, the consumer price index at 4 per cent, and an average of productivity improvement at 5.5 per cent.

They are challenging and need the efforts of all ministries, agencies, localities, business communities, and people to reach the desired goals. The government has been building the master programme on prevention and control of the pandemic and the programme on economic recovery and development. The successful prevention and control of the health crisis will be the foundation to mobilise all resources for economic recovery.

To achieve socioeconomic development goals, the Ministry of Planning and Investment has already drafted the programme on economic recovery and development for the period of 2022-2023, submitting for the government and the Politburo’s approval in early 2022, including numerous fiscal and monetary measures and policies. Thereby, 2022 and 2023 will be the most important period for economic recovery, focusing on five solution groups in the drafted programme.

Firstly, Resolution No.128/NQ-CP dated October 11 has provided regulations on the safety, flexibility, and effective control of the COVID-19 pandemic. This is a priority task and the foundation for the implementation of other solutions. So, in addition to mobilising physical resources, machines, and equipment, it is necessary to train healthcare’s human resources.

The second group relates to social welfare. The Party and state highlight environmental protection in addition to economic recovery, and social welfare is one of the key targets of sustainable development. Despite the pandemic, social welfare is still ensured. In this group, many affected people are being mentioned, including workers in industrial zones (IZs) and measures to retain and attract workers returning to work, and facilitating for labourers in IZs and economic zones to have stable accommodation and living conditions for a long time.

Besides this, there are also monetary policies, which are preferential loans for various beneficiaries, such as students and educational institutions.

The third measure provides solutions on supporting businesses through fiscal policies like delaying of taxes and fees which have already been applied, and they will be considered to maintain this year, in addition to some new monetary policies, preferential loans, and lending by interest rate support tools for businesses to have more resources for recovery and development.

The fourth factor concentrates on public investment with the impacts of both strengthening the expenditure of public investment, creating jobs and economic movement, as well as long-term effects of building infrastructure and transport systems on economic growth. In the resolution of the 13th National Party Congress, infrastructural development is one of the most important pillars, as well as adapting to climate change.

However, boosting public investment disbursement is a difficult task. To develop in an urgent period, the paperwork must be accomplished, and the contractors’ capacity must be excellent. However, it takes a lot of time to prepare and do administrative procedures, while contractors’ capacity is not as good as expectations, and the price of materials is too expensive right now for most contractors. Thereby, the solution related to public investment in the programme aims to strengthen the investment and development in the short term, as well as contribute to growth for the decade, and accomplish the North-South Expressway project.

The fifth measure group relates to managing and ensuring the balance of macroeconomics, inflation curbing, retaining stability, and administrative procedures reform, which requires the simultaneous efforts of various ministries, agencies, and localities. Because non-state investment makes up a large proportion at more than 70 per cent, administrative procedures reform is one of the most important obstacles to mobilising these resources. In January, the thematic session of the National Assembly will be held, and numerous major contents will be discussed and considered carefully, including the draft of the law on amendments of 10 laws; the eastern section of the North-South Expressway project in 2021-2025; the pilot scheme on separating site clearance and resettlement from investment projects; among many others.

It will be the key time for the implementation of these tasks, although some measures will last longer – for example, large-sized public investment projects like the second phase of the North-South Expressway project. So the three factors of solutions being strong enough, the period being long enough, and the programme scale being large enough are within reach.