'Businesses fall into traps because of unfair rules'

Delegate Le Thanh Van said that many businesses that commit violations and are punished are sometimes due to entanglements and changes in institutions, and that is the fault of policy makers.

Discussing the socio -economic situation in groups on the morning of May 25, delegate Le Thanh Van, standing member of the Finance and Budget Committee, said that domestic enterprises are currently facing numerous difficulties, but there is a lack of understanding and sharing from state management agencies.

Mr. Van believes that there is a situation where businesses are inactive because they are afraid of making mistakes and being punished. Therefore, the most important solution is to unleash the capacity of domestic businesses, which are corporations, branded general companies, and start-up companies. Regarding the handling of businesses that make mistakes, Mr. Van asserts that it is necessary to "beat them until they learn their lesson, not beat them to death."

Because according to him, unless that business interferes with national security or destroys the economy, it must be punished appropriately. If they make mistakes or are entangled by unstable institutions and legal policies, they need to be considered objectively.

"If we set unfair rules, they will fall into the trap. We need to consider objectively to create a truly strong and autonomous business force," said Mr. Van.

Delegate Le Thanh Van (standing member of the Finance - Budget Committee) spoke on the morning of May 25. Photo: Pham Thang

In addition, the market has reduced demand, there are no orders, and State support is essential. However, instead of understanding, law enforcement agencies continue to tighten control. While exhausted, businesses continue to receive many inspection and audit teams. "We fight corruption, of course, but we have to target it precisely, not aim it everywhere like that," said Mr. Van.

The Standing Committee of the Finance and Budget Committee recommends not criminalizing civil economic relations. At the same time, any cases in the economic field must be accelerated and strictly handled to prevent and build trust for investors and businesses. Avoid widespread and prolonged investigations and handling, "all businesses are worried, nervous, afraid of violating, so they do not dare to do anything".

In the real estate sector, Mr. Van is worried about a series of projects in Ho Chi Minh City being "suspended and idle". These are serious problems, if not resolved immediately, there will be a risk of a series of consequences for the economy. According to him, the cause of these problems is unstable institutions and laws, and poor quality of officials.

He proposed establishing a Central Steering Committee on Institutional Reform to make breakthroughs in personnel organization and economic institutions. The Government should soon have a short-term program to deal with the "near-recession" situation, focusing on fiscal and monetary policies.

Delegate Dinh Ngoc Minh speaks on the morning of May 25. Photo: Pham Thang

Delegate Dinh Ngoc Minh, in charge of the Economic Committee, was concerned that the solutions to remove difficulties for businesses and the economy that the Government proposed were "no different from the report of the previous year, the previous period".

Instead, the report should focus on solutions to reduce Vietnam's logistics costs because they are currently double the world average. "If we calculate GDP of 400 billion USD, Vietnam currently loses 80 billion USD, while other countries only lose 40 billion USD on logistics costs. This is a large amount of money. If it can be solved, the economy will improve and businesses will enjoy this money," he analyzed.

Mr. Minh suggested that the Government should have a project to reduce logistics costs for businesses and consider building more railway lines with a capacity of 100 million tons of goods per year. The National Assembly should study and develop a separate resolution to develop businesses in the new era to restore the economy, including tax support and avoiding unnecessary inspection and examination teams to businesses.

Mr. Ha Sy Dong, Standing Vice Chairman of the People's Committee of Quang Tri province, is also worried that industries considered to be pillars of export such as leather, footwear, textiles, and wood have all declined in the first four months of the year. "Slow capital disbursement and weakening aggregate demand in both consumption and investment show that the economic health is being eroded," he said.

Agreeing with the reduction of taxes and fees to stimulate demand, Mr. Dong said the Government needs to improve policy implementation, because in reality, there are support policies that have been introduced but have not been disbursed. For example, the 2% support package is ineffective because the condition is that businesses must have the ability to recover and repay debts. The assessment of "resilience" is unclear, so businesses are starved for capital but cannot borrow.

Regarding interest rates, the State Bank has made many moves to reduce operating interest rates, but in reality, lending interest rates are still very high. Mr. Dong raised the question of whether the effectiveness of fiscal policy really coordinates well with monetary policy to achieve the goal of reducing lending interest rates.

Son Ha - Hoai Thu

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