Key measures to revive economy
Ministries, agencies and localities should iron out snags in business production, support the market and solve bad debts.
Prime Minister Nguyen Tan Dung emphasized this at a teleconference in Hanoi on December 25-26 in the presence of provinces and cities from across the country.
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Participants discussed a draft resolution on key measures to implement plans for socio-economic development and State budget spending in 2013.
Deputy Prime Minister Hoang Trung Hai underscored the need to stabilise the macroeconomy and control inflation. He said the Government will focus on dealing with good stockpiling and improving the investment environment.
In the resolution, the Government proposed spending billions of VND to rescue and warm up the real estate market.
Regarding housing projects, he said, it will encourage the participation of enterprises and individuals and ask the State Bank of Vietnam (SBV) to earmark between VND20-40 trillion (US$)961 million-1.9 billion) to lend to civil servants, members of the armed forces and low-income earners so that they can buy or rent houses.
Its new tax policy will lead to a 50-percent reduction in the value-added tax charged for the sale, rent or purchase of homes and encourage both foreign and local organizations and individuals to buy houses in Vietnam.
Hai said the Government will also reduce vehicle registration fees from the current rate of 20 to 10 percent for cars with 10 seats or fewer.
It will support enterprises in gain access to capital sources, reduce production costs and stimulate consumption. Small and medium-sized enterprises, including those in the real estate and trade sectors, will enjoy an extension of six months for paying income and value-added taxes, Hai said.
In the meantime, the SBV will assess bad debts in every field of activity and closely supervise the operations of credit organizations. The Ministry of Finance will introduce new measures to solve the bad debts owed by State-run enterprises during the restructuring process.
At the conference, Deputy Chairman of the Hanoi municipal People’s Committee Nguyen Huy Tuong called for greater efforts to carry out Government programmes and further support until 2014.
He proposed issuing bonds worth VND5 trillion to boost infrastructural construction in 2013.
The Chairman of the Haiphong city People’s Committee, Duong Anh Dien, said many enterprises in the city need the quick clearance of more land for their expanded production and business operations.
The Chairman of the HCM City People’s Committee, Le Hoang Quan, asked the Government to support the real estate market as it has a big influence on other sectors.
At the conference, Deputy Minister Vu Van Ninh and Minister of Planning and Investment Bui Quang Vinh reported the results of socio-economic development in 2012 and called for co-ordinated efforts by leaders from the central to grassroots levels to help achieve a steady growth.