Hanoi (VNA) 🅠– The Government has proposed the National Assembly (NA) to allow it tocontinue the 2% interest rate support policy for enterprises, cooperatives, and business households.

Presentingthe results of the implementation of the NA’s Resolution 43/2022/QH15 (Resolution43) on fiscal and monetary policies to support Vietnam’s post-pandemicsocio-economic recovery and development at the NA's 6thsession on October 23, Minister of Planning and Investment Nguyen Chi Dung said that after nearly two years of performance, Resolution 43 has proved to be a correct and timely decision ofthe NA as Vietnam's socio-economic situation faced many difficultiesand challenges due to the COVID-19 pandemic. Implementingthe resolution, the Government in May 2022 issued Decree 31/2022/ND-CP on a 2% interest rate reduction in  loans of enterprises,cooperatives, and business households. Bythe end of August 2023, the amount of interest rate support was equivalent toabout 1.95% of the resources approved by the NA, with outstanding loans reachingnearly 57 trillion VND (2.31 billion USD) for more than 2,100customers.

Inaddition, by the end of September 2023, the Vietnam Bank for Social Policiesdisbursed preferential credit of more than 21 trillion VND to more than 366,000customers, disbursed about 3.679 trillion in rental support for 128,746employers and nearly 5.2 million employees.

TheGovernment also developed a list and level of capital allocated to tasks andprojects in line with the provisions of the Law on Public Investment and꧅ the principles,criteria, and subjects of capital allocation. The Government urgently completedinvestment procedures for projects using capital from the socio-economicrecovery programme.

TheGovernment allocated more than 166 trillion VND of the2022 and 2023 capital plans, contributing to accelerating the construction ofsocio-economic infrastructure projects, highways, and large bridges.

Besidesthe positive results, shortcomings and limitations remained, relating to theissuance of relevant instructions, forecasting, and calculating work. Theimplementation and disbursement of some issued policies failed to meetexpectations. The policy implementation in some places and sometimes notflexible nor proactive, thus the allocation and disbursement of the programme'scapital for tasks and projects is still slow, creating great disbursementpressure, especially in the 2023 plan.

Onthat basis, the Government proposed the NA permit ꦺit to continue the 2%interest rate support policy.

Presentingan assessment report, Chairman of the NA's Economic Committee Vu Hong Thanhhighly appreciated the efforts and drastic, positive, and timely direction ofthe Government, the Prime Minister as well as the participation of ministries,agencies at central and local levels on implementing Resolution 43. Theimplementation has had positive impacts, helping businesses to solve difficulties, supporting production and business, promoting economicrecovery, and making important contributions to socio-economic developmentresults in 2022 and 2023.

Theresults were highly appreciated by voters, and people and recognised by theinternational community, Thanh said.

Hesaid that in the context of low credit growth in the first nine months of 2023and slow 𓃲capital disbursement of the economic recovery programme, the NA’sEconomic Committee agreed with the Government's proposal to continue the interest ratesupport policy.

Thecommittee also agreed to propose the NA extend the disbursement time fordevelopment investment capital plans allocated for investment projects of theprogramme until the end of 2024. Thecommittee requested the Government to continue to harmonise capital forprojects to ensure the efficiency of capital use and enhance investmentefficiency./.