The deputies said that when the economic crisis began, the government swiftly adopted measures to stimulate the economy and ensure social welfare. Thanks to the government’s appropriate policies and joint efforts from sectors, businesses and the public, the economic slowdown has bottomed out and the economy has shown some green shoots of recovery, meeting major targets set by the National Assembly.

Stimulus package brings positive results
Many deputies praised the efficiency of the first economic stimulus package, helping the country cushion the impact of the global financial and economic turmoil. Together with policies to exempt, reduce and extend deadlines for tax payment, the government’s interest subsidy programme has helped many businesses cut production costs, increase the competitive edge of their products and overcome a period of decline and stagnation.    

However, they proposed that the government make an in-depth analysis of the social impact of the first stimulus package. Deputies Ho Quoc Dung and Tran Ngoc Vinh said the package seems to have focused on stimulating supply rather than demand. They said it is unfair that only 20 percent of needy businesses have received subsidised bank loans and that the interest subsidy programme in rural areas has not lived up to farmers’ expectations. They asked the government to clarify the reasons why all needy businesses and farmers have not benefited from the stimulus package.

Deputies Tran Hong Viet, Huynh Ngoc Dang and Nguyen Van Sy suggested that banks offer medium- and long-term loans to small- and medium-sized businesses and businesses in the agro-forestry and fisheries and processing sectors.

“Offering medium- and long-term loans is a very practical solution at the moment, given the fact that Vietnam is carrying out a business restructuring programme,” they said.

They added that the government should extend the interest subsidy programme to the end of 2010 or beyond with more simplified procedures to support farmers, the poor and policy beneficiaries who are most vulnerable to the economic slowdown.

Many deputies recommended that the government introduce a second stimulus package, with priority given to medium- and long-term investments as well as restructuring the national economy. Deputy Ya Douk proposed that the government continue subsidising medium- and long-term banks loans to coffee growers in the Central Highlands.

Economic restructuring needs a breakthrough
Restructuring the economy and transforming the growth model is one of the major tasks of the government to meet socio-economic development targets and achieve higher growth in 2010. While discussing this task, the deputies proposed specific solutions to improve the quality, efficiency and competitiveness of the economy.

Deputy Le Bo Linh said economic restructuring should focus on the development of infrastructure, science-technology, human resources, and administrative and economic institutional reform. These categories should be developed into three national target programmes to be be carried out over at least five years. Each programme will have specific objectives and tasks and be entrusted to a deputy Prime Minister. The Prime Minister himself will be responsible for the programme of administrative and institutional reform.

Poor localities need more investment
Deputy Dong Huu Mao said the government should introduce policies to help people living in flood-prone areas build safe and concrete houses. He acknowledged efforts made by localities in evacuating people from flood-prone areas to higher ground whenever Vietnam prepares to cope with a storm. However, evacuation is costly and only safeguards people’s lives, not their property.  

Other deputies asked the government to improve the quality of infrastructure construction projects, especially in stormy regions. They said that public works to be built in these regions should be highly resistant to storms and floods.

Deputies Nguyen Hong Nhi and Hoang Ngoc Thai said the low rate of poor households recorded in 2009 did not reflect reality, reasoning that the criteria for poverty have remained constant while market prices have increased significantly in recent years. In addition, the poverty rate varies widely between regions, and ethnic groups in remote areas still live hard lives.

The criteria for poverty should be reconsidered so that investments will be allocated more fairly, helping narrow the gap between urban and rural areas, said the deputies.

Deputy Nguyen Danh proposed that the government increase investment in rural and ethnic-inhabited areas, especially the north-eastern, north-western and Central Highlands areas which have the highest poverty rates in the country.

The deputies praised the government for issuing resolution No30a to assist 62 poor districts across the country. They said to make the programme effective, the government should simplify procedures, speed up capital disbursement and raise the amount of capital allocations, taking into account the characteristics of each region. They also encouraged businesses to pour more investment into these districts to help them keep up with others in the region.