The National Assembly adopts Resolution 43/2022/QH15 at the first extraordinary session of the 15th tenure. (Photo: VNA).(Photo: VietnamPlus) Hanoi (VNA) – Resolution 43/2022/QH15 saw timely and sound policies pave the way to strong recovery for the Vietnamese economy in 2022, as seen in the achievements after one year implementing the resolution.
The COVID-19 pandemic dealt a strong blow to Vietnam’s economic growth, pushing the growth rates in 2020 and 2021 to the lowest level in many years, at 2.91% and 2.58%, respectively. Total economic losses caused by the pandemic over those two years amounted to 847 trillion VND (37 billion USD).
The poverty rate rose again, from 5.2% in 2020 to 9.35% in 2022, meaning 10 million more people fell into poverty.
In such circumstances, the adoption of Resolution 43/2022/QH15 created conditions for the Government to implement the Party’s guidelines, helping the country recovery in 2022.
The resolution provided special mechanisms through a support package of nearly 350 trillion VND, assisting the business community to gradually restore production and business.
The following is Part 1 of a five-part story on the process of implement Resolution 43/2022/QH15 (or Resolution 43 in short) and the outcomes that it has brought.
Part 1: Resolution 43 – start of impressive recovery
On January 11, 2022, the National Assembly adopted Resolution 43/2022/QH15 on fiscal and monetary policy supporting the socioeconomic recovery and development programme, at the first extraordinary session of the 15th tenure.
The economic picture after one year of implementation is a testament to its effective design and outcomes.
Economy makes impressive revival
According to reports of the Ministry of Planning and Investment, the macro-economy remained stable, inflation was under control, big balances of the economy were ensured, and fiscal and monetary policies were executed in a proactive, flexible and effective manner.
Many industries recovered strongly with high growth rates, and 13 out of the 15 targets set for 2022 have been met or exceeded.
Specifically, the GDP growth rate was estimated at 8.02% (the target was 6-6.5%) and was the highest annual growth in the 2011-2022 period. Per capita GDP averaged 95.6 million VND, equivalent to 4,110 USD at current rate, up 393 USD from 2021.
Production and business activities revived in all three economic sectors – agri-forestry-fisheries (up 3.4%), industry-construction (up 7.8%), and services (up 10%).
A contingent of people, especially farmers and fishermen, are facing various difficulties. However, support policies have yet to be issued for them. (Photo: VietnamPlus) The business environment showed remarkable improvement with 208,000 new enterprises starting operation, up 30% year on year. Disbursement of FDI capital increased by 13.5% to nearly 22.4 billion USD, the highest level in the past five years.
It is noteworthy that total foreign trade revenue reached a record 732.5 billion USD, up 9.5%, with a trade surplus of 11.2 billion USD.
Internationally, the International Monetary Fund (IMF) said Vietnam led the ASEAN-5, comprising Singapore, Malaysia, Vietnam, Indonesia, and the Philippines, with high growth last year. Meanwhile, the Asian Development Bank (ADB) said Vietnam has maintained positive growth amid global uncertainty.
Vietnam is currently the only country in the Asia-Pacific region and one of the four countries worldwide to have its credit rating upgraded by Moody's in 2022.
In its report on Vietnam’s economic outlook, the Singapore-based United Overseas Bank (UOB) said the growth rate of 8.02% in 2022 was a clear demonstration of the resilience and recovery capability of the country after the COVID-19 pandemic.
International media such as Singapore’s website straitstimes.com, the US’s CNN and the UK’s BBC also highlights Vietnam’s economic growth amid concerns for the global economic recession.
This demonstrates the sound and timely issuance of Resolution No. 43 and series of important policies and solutions by the Party, the National Assembly, and the Government over the past time.
The resolution led to successes in macro-economic control and inflation stabilisation as well as socio-economic achievements, said Tran Van Lam, permanent member of the NA’s Finance-Budget Committee.
"The socioeconomic growth and development in 2022 went beyond expectations set for the building of Resolution 43," he noted.
Resources support goes with confidence raising
NA Secretary General Bui Van Cuong called the convening of the first extraordinary session of the 15th NA Standing Committee a historic decision by the legislature over the past 76 years, saying it reflects the mettle and political will of the NA and its deputies to take reforms and drastic actions for public interests.
The resolution has created a framework for state management agencies to adopt practical policies in support of recovery efforts by people and businesses after the pandemic.
The industrial sector is experiencing strong recovery with high growth. (Photo: VietnamPlus) Notably, it allows the application of special mechanisms, whereby the Prime Minister decides on the selection of contractors within a two-year period (2022-2023) for consultancy packages and bidding packages of significant national projects, and important, large-scale, infrastructure projects in transport and health care.
Regarding the results of implementing socio-economic recovery and development packages in 2023, the Ministry of Finance said it has proposed the Government submit a proposal to the NA Standing Committee to supplement 6.6 trillion VND in housing rent support for workers under the resolution. So far, over 4.3 trillion VND has been allocated to 31 localities.
Besides, a policy in support of the recovery of enterprises, cooperatives, and business households has been rolled out with some 10.6 trillion VND in tax deferrals, equivalent to about 78.5% of the estimate, and over 50 trillion VND in tax exemptions and reductions, equivalent to 78.4% of the estimate.
Furthermore, in response to the sharp increase in fuel prices in early 2022, and to control inflation and alleviate difficulties facing the economy and stabilise people's lives, the Government proposed the NA Standing Committee issue resolutions on reducing environmental protection taxes on gasoline, oil, and lubricants, with an estimate of about 32 trillion VND, of which 30.7 trillion VND has been disbursed.
Vu Tien Loc, member of the NA Economic Committee, stressed that results of the implementation of socioeconomic development targets in 2022 vividly reflect the efficiency of the resolution.
However, he said, it is necessary to speed up the disbursement of support packages included in the socioeconomic recovery and development programme set in the resolution, and to better reform administrative procedures in order to further assist enterprises in the time ahead.
To Van Tam, a permanent member of the NA Committee for Legal Affairs, also pointed to the sluggish implementation of the support packages and complicated procedures, which has hindered access.
Responding to challenges
Despite the important, and comprehensive achievements in most spheres last year, the national economy is forecast to face global headwinds.
Since late October 2022, growth drivers, industrial production, and other sectors have been trending downward as the country's major export and import markets have contracted.
In addition, the stock, corporate bond, and real estate markets have seen potential risks, while market confidence has been declining. The currency and foreign exchange markets are also under significant pressure.
Given this, the Government follows the guidelines and policies of the Party and the State, instructing agencies and localities to implement solutions.
The Ministry of Planning and Investment will also continue studying and proposing measures and solutions to promote the socioeconomic recovery and development programme, said Minister Nguyen Chi Dung.
According to Minister of Finance Ho Duc Phoc, to ease external impacts and control inflation, the Government is working on solutions which will be submitted to the legislature.
Tam also suggested the Government carry forward the role of economic diplomacy to maintain economic stability, and continue to adapt and ensure the independence of the economy during the integration period. He said that at this time, it is important for Vietnam to exploit its signed bilateral and multilateral trade agreements.
Loc said ministries, agencies and localities should make thorough preparations for the implementation next year so that capital will be disbursed within the year./.
