Proposal to continue implementing the 2% interest rate support policy

Continuing the 13th plenary session, on September 27, the Economic Committee examined the report on the implementation of Resolution No. 43 of the National Assembly on fiscal and monetary policies to support the Socio-economic Recovery and Development Program.

Presenting the report, Deputy Minister of Planning and Investment Do Thanh Trung said that the implementation of support policies for people and businesses has achieved remarkable results. By the end of September 2023, support policies had disbursed about VND 95.7 trillion.

However, some policies have expired or used up all their resources. Some policies have large resources but their implementation results are still limited. Disbursement of the Program's development investment capital plan is still slow, and it is possible that the policy's set goals will not be achieved.

Regarding public investment policies and other development investments, the Government's report also clearly stated the results, including detailed allocation of Program capital in the 2022 and 2023 plans of nearly 154 trillion VND, contributing to accelerating the commencement of construction of socio-economic infrastructure works, highways, large-span bridges, etc.

Dialogue - Proposal to continue implementing the 2% interest rate support policy — Overview of the meeting.

However, some difficulties and problems have also been pointed out, such as the slow completion of investment procedures, allocation and assignment of capital plans for some tasks and projects, and the possibility of not being able to fully disburse the Program's capital plan within the prescribed time...

From there, the Government proposed to submit to the National Assembly Standing Committee for consideration and decision to transfer resources to implement preferential credit policies through the Social Policy Bank: Reduce 16,100 billion VND of planned capital allocation to implement 4 preferential lending policies.

Cut down the capital plan of the Program, do not implement some projects of the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Education and Training: Reduce the total capital of the Program arranged for the Ministry of Labor, War Invalids and Social Affairs of 5 projects by 950 billion VND and allow not to implement these projects; reduce the capital of the Program arranged for the Ministry of Education and Training by 271,028 billion VND.

In addition, the Government also proposed that the National Assembly consider and decide to continue implementing the 2% interest rate support policy for enterprises, cooperatives, and business households according to Resolution No. 43. For the capital that is not fully implemented at the end of the policy implementation period (estimated at VND 38,592 billion), submit to the National Assembly to cancel the capital estimate and plan, not mobilize resources, and not increase the deficit.

At the same time, allow the extension of the implementation period and disbursement of the development investment capital plan of the Program until the end of 2025. Assign the Government to review and clearly determine the amount of capital needed to extend the implementation period and disbursement of each project, on that basis report to the National Assembly Standing Committee for consideration and decision.

In his concluding remarks, Chairman of the Economic Committee Vu Hong Thanh suggested that the Government conduct a more fundamental analysis and assessment of the limitations in implementing fiscal and monetary policies according to Resolution 43 of the National Assembly.

From there, there will be strong and drastic solutions to promptly overcome existing problems and limitations to accelerate the disbursement of public investment capital from the beginning of 2024, especially important national projects, key works and 3 National Target Programs.

Strongly develop the domestic market and step up trade promotion, expand and diversify markets, improve product quality, participate more deeply and widely in regional and global supply chains, and strive for a sustainable trade surplus .

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