High expectations from year-end session of legislature

VOV.VN - Experts expect the ongoing year-end session of the National Assembly in Hanoi will make timely and appropriate decisions for the economy, with a specific focus on the business community recovering from the impact of the pandemic and maintaining steady growth.

The fourth session of the legislature is taking place in Hanoi amid regional and global complications, especially those relating to volatile market developments, thereby putting great pressure on the Vietnamese economy in both the short- and long term. Despite positive signs for the national economy up, the business community continues to face many difficulties and challenges moving forward.

Businesses are currently exerting every effort to make up for what they had lost during the past two years of the fight against COVID-19, Dr. Le Duy Binh, economist and director of Economica Vietnam, told Nhip Song Doanh Nghiep.

“Many businesses are in dire need of credit, especially those that are ramping up production for the coming New Year holiday and export orders. Indeed, they still find it difficult to access bank loans as banks say they are running out of room,” complained Dr. Binh.

Commenting on the implementation of bailout packages approved by the legislature, Vu Tien Loc, an incumbent deputy of the legislature, pointed out that the disbursement rate is occurring at a snail’s pace. He cited sources saying that only 20% of the capital for the economic recovery programme has so far been disbursed, while one third of the 2% interest rate support package has been disbursed. 

“Due to this difficulty, on average 12,500 businesses withdraw from the market every month, meaning 12,500 business initiatives are not realised,” he stated.

Despite many improvements in the business environment, firms continue to run risks in terms of legal affairs due to the existence of inadequacies.

“Through meetings with businesses, they do not dare to take initiatives for fear that many cases of economic relations are criminalised,” confided Loc.

During the 21-day sitting, lawmakers are anticipated to pass seven bills and debate seven others, a move which is expected by experts to make the legal corridor more transparent to allow them to support the business and investment environment.

“Vietnam boasts a large number of start-ups, but we still don't feel if they are ready to embark on doing business. I hope changes in the legal system will continue to instill this spirit in businesses,” said economist Dr. Binh.

Meanwhile, lawmaker Loc stated that the much-anticipated Land Law (revised), which is scheduled to be tabled for discussion this time, will help to remove overlapping bottlenecks, open up further land resources, ensure social security, and provide a fresh impetus to the real estate market.

“Easier access to real estate means businesses can have an effective collateral in case they want to borrow loans from credit institutions. On the contrary, without access to credit, many businesses will lose the opportunity to recover from the pandemic or be unable to expand production and business activities,” analysed Loc.

Furthermore, Dr. Bui Dang Dung, former vice chairman of the Finance and Budget Committee of the previous legislature, said that both people and businesses anticipate the NA to assess the various opportunities and challenges facing the economy amid global changes, thereby introducing policies which are appropriate and timely.

“We are waiting for the Government’s suggestions to the National Assembly on solutions so that the national economy is able to grow and develop steadily, help to control inflation and improve people’ well-being in the context of complex, unpredictable economic developments in the world,” said Dr. Dung.

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