The economy is "thirsty" for capital but has difficulty "absorbing" capital.

Businesses face many difficulties in terms of market, cash flow and administrative procedures.

On October 16, at the 27th session of the National Assembly Standing Committee, presenting the content of the Government's review report on the results of implementing the 2023 Socio -Economic Development Plan, Chairman of the National Assembly's Economic Committee Vu Hong Thanh said: In the context of the world and domestic situation facing difficulties, under the leadership of the Party, the National Assembly, and the Government, timely decisions have been made to help the socio-economic situation continue its positive recovery trend, with an estimated 10/15 targets for the whole year reaching and exceeding the set targets.

The macro economy is basically stable, inflation is under control, major balances of the economy are basically guaranteed; public debt, government debt, and budget deficit are under control; many key and important national transport infrastructure projects are being focused on to accelerate the implementation progress; the monetary and credit markets are basically stable, interest rates are decreasing; stock market liquidity tends to improve; institutional building and improvement work continues to be promoted; the fight against corruption and negativity continues to receive attention and strong direction; focus is on doing well the work of ensuring social security, labor, employment, and improving people's lives; the cultural and educational fields have many changes; national defense and security are maintained; foreign affairs activities are promoted, international prestige and position are enhanced.

In addition to the results achieved, the Economic Committee proposed to pay attention and focus on evaluating a number of issues more closely. It is expected that 5/15 indicators will not reach the set target, in which the social labor productivity growth rate will not reach the set target for the third consecutive year. Some bottlenecks have not been effectively removed, administrative procedures have been reduced but in some areas are still cumbersome and complicated, the issuance of Circulars and Technical Regulations is still inadequate, causing difficulties for people and businesses.

The economy is thirsty for capital but has difficulty absorbing it. Although the mobilization and lending interest rates have decreased, outstanding credit as of September 21, 2023 only increased by 5.91% compared to the end of 2022. Enterprises face many difficulties in the market, cash flow and administrative procedures, infrastructure does not meet requirements, production costs and logistics costs increase; the connection between enterprises of economic sectors is loose and lacks cohesion.

Disbursement of public investment capital has improved but has not met expectations (after 9 months, it reached 51.38% of the plan), has not spread to private investment, and has not demonstrated its core role in promoting economic growth. State budget revenue in 9 months decreased by 8.3% compared to the same period; tax arrears tend to increase; VAT refund settlement is still slow. The task of administrative reform and improving the investment and business environment still has some difficulties and challenges.

School violence and food insecurity in schools are still complicated. Overcharging at the beginning of the school year and overcharging from “parent funds” cause dissatisfaction among parents. Social order, security, and crime are sometimes and in some places still hidden with complicated factors. Fire prevention and fighting work faces many challenges, many fires have occurred causing serious damage to people and property…

Planning work does not achieve the goals and requirements in Resolution No. 61/2022/QH15

Reviewing the mid-term implementation of the 5-year Plan 2021 - 2025, the Standing Committee of the Economic Committee assessed that, looking back at the past half term, Vietnam has basically steadfastly overcome all difficulties and challenges, achieving many important and quite comprehensive results, recognized internationally and domestically.

In addition to the achieved results, the auditing agency recommended that the Government pay attention to and evaluate a number of issues: The economic structure has not changed much; productivity, quality, efficiency and competitiveness are still low, the average labor productivity in the 3 years 2021 - 2023 increased by 4.36 - 4.69%, lower than the 6.26% of the 3 years 2016 - 2018; the autonomy and resilience of the economy are still limited.

The quality of state budget revenue still contains unsustainable factors. Compared to the estimate, revenue from crude oil in 2021 exceeded VND21.4 trillion, in 2022 exceeded VND49.8 trillion; land use fee revenue in 2021 and 2022 both exceeded about VND74 trillion. Attracting new FDI, high technology, source technology and technology transfer encountered many difficulties. Disbursement of public investment did not meet the plan.

Institutional development and improvement work is still limited, and the debt of detailed legal documents and ordinances has not been completely resolved. Institutions for new issues and new business models, including digital economy, circular economy, and green growth need to be reported more clearly. Planning work has not achieved the goals and requirements in Resolution No. 61/2022/QH15. The implementation of land use planning and plans according to Resolution No. 39/2021/QH15 is still confusing and problematic; some localities have reported that the allocation of land use quotas for industrial zones and clusters is not appropriate.

Manufacturing enterprises have not yet met the requirements for green - clean energy conversion, low carbon, sustainable materials, environmentally friendly production... from the import market; plus increasingly strict requirements for imported goods from traditional markets. Building a synchronous infrastructure system with a number of modern works is still slow, especially solving bottlenecks in infrastructure development in large cities. Implementing important national projects still faces many difficulties, affecting the progress of the projects, making it difficult to complete the plan.

COVID-19 prevention and control work was sometimes passive and confused, especially in the early stages when the Delta variant broke out strongly. Management and use of resources for prevention and control of the epidemic were still inadequate, with negative situations, corruption, and violations of the law. Many serious incidents occurred, causing frustration and affecting people's trust.

There are no breakthrough, inter-regional scientific and technological tasks or products that can be deployed on a large scale. The implementation of the 3 National Target Programs is still very slow. The education sector has been severely affected by the COVID-19 pandemic, from quality to psychology, health, and knowledge of students; many students cannot graduate on time.

In addition, many industrial zones still lack centralized wastewater treatment facilities and automatic wastewater monitoring systems; some river basins are still heavily polluted. State management of climate change, greenhouse gas emission mitigation in general and greenhouse gas inventory in particular still has some limitations.

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