Finding solutions to economic recovery in the new situation

Duc anH

Prime Minister Pham Minh Chinh chairs an online conference with the business community and localities on solutions to support businesses amid Covid-19

The Government, the National Assembly and the State Bank of Vietnam have organized conferences to find solutions to flexibly adapt to, effectively control the Covid-19 pandemic and restore the economy. Senior leaders of BIDV participated in these conferences to get informed of directions as well as giving inputs for effective implementation.

GOVERNMENT IN TALKS wITH BUSINESSES

On 26 September, Prime Minister Pham Minh Chinh chaired an online conference with the business community and localities. The conference discussed solutions to adapting safely, flexibly, and effectively controlling the pandemic while restoring the economy.

The Prime Minister said that if the focus was only on fighting the pandemic, resources will run out and if the focus was only on economic development without solutions to combat the pandemic, the people's health cannot be protected. An exchange cannot solve all problems, it is necessary to promote the spirit of innovation, creativity, mutual understanding, solidarity, unity to find a common voice and solutions to overcome the difficulties.

Since the outbreak of the pandemic, the Government has issued many policies to support businesses, including Resolutions No.86/NQ-CP and No.105/ NQ-CP on supporting businesses, cooperatives and business households in the context of the Covid-19 pandemic. Other policies and solutions to support businesses were also put in place such as policy on flexibly implementing regulations on Covid-19 pandemic prevention and control; on supporting workers and employers; on corporate income tax reduction, on supporting businesses, particularly small and medium-sized enterprises to improve their competitiveness.

The Government is directing the development of a plan on safe, flexible adaptation to and effective control of the Covid-19 pandemic, drafting to amend and supplement many laws to continue removing the difficulties in production and business. The Prime Minister Pham Minh Chinh emphasized: the Government has been accompanying the business community in the spirit of “3 Don’ts” - Don’t say “no”, Don’t say “difficult”, and Don’t say “yes” but then take no action.

ExPERT CONSULTATION FOR ECONOMIC GROwTH

On 27 September, the National Assembly held a seminar to consult experts on socio-economic development under the chair of National Assembly Chairman Vuong Dinh Hue. The seminar is a forum for experts, scientists and regulators to express their in-depth, independent

and constructive views in order to meet the socio-economic development plan of 2021 and building a quality and sustainable plan for the next year.

Regarding fiscal policy and monetary policy, the National Assembly assigned the Government to consider support measures toward a more balanced direction. The fiscal policy should be more supportive for economic recovery in the direction of increasing spending on health, more cash support for people; reducing interest rates for the right subjects.

The National Assembly Chairman said that in order to effectively disburse public investment, good preparation and capital allocations are of significance. Besides, it is necessary to accelerate equitization and divestment to increase budget revenue and attract more investors to participate in restructuring businesses and the economy more effectively.

The participating experts proposed to the National Assembly a master program for post-pandemic economic recovery, with a specific roadmap. It is necessary to promote the startup ecosystem, digital transformation, digital economy, green growth, restructuring of the economy, reviewing and strengthening national governance capacity and capacity for policy implementation.

BANKING INDUSTRY’S SUPPORT FOR BUSINESSES

Given the complicated development of the Covid-19 pandemic, the State Bank of Vietnam has taken a proactive and flexible approach to monetary policy in order to timely support businesses and people. The central bank also closely directs credit institutions to balance, fully and promptly meet the capital needs for production and business, speed up administrative reform, and shorten the turnaround time, improve customers' access to loans; promptly take measures to support businesses and people.

At the conference on implementing the task of supporting airlines affected by the Covid-19 pandemic under the Government’s Resolution No.105/ NQ-CP, Mr. Dao Minh Tu - Standing Deputy Governor of the State Bank said the complicated developments of the pandemic severely affect the economy, businesses and people, including airlines. Against that backdrop, the Government in general and the State Bank in particular have taken many solutions to support businesses and people such as rescheduling debt repayment, reducing and exempting interests, fees, and maintaining the debt group, etc. for customers facing difficulties due to the impact of the pandemic. Mr. Tran Long – Senior Executive Vice President of BIDV - said: the lending interest rates for airlines are at a very low level. If other costs such as deposit insurance and required reserves are taken into account, the margin is negative. Mr. Tran Long also proposed the State Bank consider removing difficulties faced by banks in implementing credit policies for airlines that are suffering continuous loss and have not yet determined their ability to repay debts in the future. This is the banks’ difficulty when continuing to finance, maintain and increase the credit limit for airlines.

The banking industry has played an important role in the economic recovery and development in the new normal. As one of the largest Stateowned commercial banks with a long history of operation and reputation, BIDV has been joining the banking industry and the whole country to overcome the pandemic.