With a series of imperfections and limitations from the inside of the economy, along with the context that the world is experiencing many negative developments, many new problems without precedent have emerged… with the Vietnamese economy in 2023. Therefore, the market expects that the management agency will find a way to make the Vietnamese economy overcome challenges.

At the 5th Vietnam Economic Forum organized by the Central Economic Commission, both fiscal and monetary policy actors confirmed that they have concrete plans and goals for 2023.

According to Mr Nguyen Duc Chi, the deputy finance minister, this agency has various tax packages that can be improvised with upcoming developments. Specifically, the Ministry of Finance will continue to propose the postponement of some taxes and duties. Based on this, it will help companies overcome liquidity and cash flow difficulties.

“The Treasury will also lower the property tax. At the same time, the lower environmental tax limit for petroleum products will be retained. From then on, there will be more leeway to manage commodity prices,” said Mr. Chi.

In addition, Deputy Minister Nguyen Duc Chi said the Ministry of Finance will try to secure resources for the economy on the basis of increasing budget revenue, reducing spending and mobilizing domestic and foreign resources. This ensures the progress of public investment projects, as well as projects in economic recovery.

Regarding the stock market, the Treasury will create all favorable conditions to help transparent companies raise capital. Support for eligible companies to issue corporate bonds to the public. From then on, the pressure on credit capital will decrease rapidly.

“As far as the legal aspect is concerned, we have discussed the amendment to Decree 65 and are implementing it swiftly. I believe that investor confidence will be boosted and the corporate bond market will recover quickly,” stressed the Deputy Finance Minister.

On the monetary side, Pham Thanh Ha, deputy governor of the State Bank of Vietnam, said that in 2022, the goal of economic stability and inflation control will definitely be achieved. However, headline inflation and core inflation data are on an uptrend and will continue to rise in the near future. With this development, Vietnam’s economy will indeed face some pressure, especially related to the slowing global economy, some countries and Vietnam’s main markets are likely to fall into recession.

Accordingly, in order to control inflation and stabilize the macro economy, the state bank must stabilize the currency and foreign exchange markets and ensure the liquidity of the credit institution system.

In particular, the state bank must rationally and synchronously manage both interest rates and exchange rates, and adequately align credit growth with market movements and macroeconomic developments. On the other hand, in difficult circumstances it may be necessary to have a priority goal.

In addition, the State Bank reiterated the goal of stabilizing the psyche of the depositors when ensuring the operational security of the credit institutions.

Mr Ha added that the flow of capital to the economy still comes from three main sources, including bank lending, stock markets and public investment, in addition to foreign capital. Therefore, the State Bank will continue to synchronize and closely coordinate with fiscal policy and other macro policies.

Because the money market, capital market and real estate market are very closely linked, said Mr. Ha. If the stock market collapses, it will put pressure on bank lending, affecting the psychology of savers. On the contrary, the liquidity of credit institutions is difficult, which also affects the functioning and development of the corporate bond market.

“Business demand is always high. The state bank is trying to ensure the role of credit capital. However, there is also a need for support from the capital market and public investment,” Mr Ha said frankly.