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| Unprecedented policies drive Vietnam’s economic recovery__Photo: VNA |
Resolution 43/2022/QH15, a landmark fiscal and monetary policy package enacted by the 15th National Assembly during an extraordinary session in early 2022, has yielded positive outcomes in supporting Vietnam's socio-economic recovery and development.
The resolution introduced a series of unprecedented measures, including tax waivers and reductions totaling VND 60.53 trillion (USD 2.52 billion), or 94.6 percent of the estimate, contributing to removing difficulties for citizens and businesses. Notably, the legislature authorized a 2-percentage-point reduction in VAT and land and water surface rent for both 2023 and 2024.
Despite falling short of the projected target, Vietnam's GDP growth rate of 5.05 percent in 2023 remained relatively high compared to regional and global trends. The steady and consistent recovery across all three sectors of the economy was a testament to the significant efforts and unwavering determination of the Government, the Prime Minister, and relevant agencies in the face of unprecedented economic challenges.
Public debt management has emerged as a bright spot in Vietnam's fiscal and macro-economic policies. Credited by international organizations and rating agencies as sustainable, public debt levels have provided the Government with the flexibility to enforce reasonable, expansionary fiscal policies when necessary, particularly during the COVID-19 pandemic. As of the late 2023, the public debt ratio stood at approximately 37 percent of the GDP, below the NA’s 55 percent warning threshold and 37.4 percent in late 2022.
Several key social and economic indicators showcase the effectiveness of the policies. The urban unemployment rate remained low, hovering around 2.73 percent and 2.79 percent in 2023 and 2022, respectively, successfully meeting the NA's target. Inflation control measures also proved effective, with the consumer price index increasing moderately by 3.15 percent in 2022 and 3.25 percent in 2023, significantly lower than the NA's targeted range of 4-4.5 percent.
State budget revenue exceeded expectations, reaching 128.6 percent and 108.12 percent of the estimates in 2022 and 2023, respectively. This resource has been strategically allocated to support social welfare initiatives. Notably, over VND 3.67 trillion from the central budget was disbursed to assist 59 out of 60 localities in covering housing rental expenses for nearly 5.2 million workers. As of the late 2023, the Vietnam Bank for Social Policies disbursed a total of 38.4 trillion VND in preferential loans to over 615,000 customers, including low-income individuals and social policy beneficiaries.- (VNA/VLLF)
