Focusing on Removing Difficulties and Obstacles Related to Real Estate, Credit, and Bonds
Focus on Resolving Difficulties and Obstacles in Credit, Bonds, and Real Estate Markets
On March 7, 2023, the Government of Vietnam promulgated Resolution 31/NQ-CP 2023 in the regular Government meeting of February 2023.
In Subsection 1, Section 1 of Resolution 31/NQ-CP 2023, the Government of Vietnam requires ministries, agencies, and localities, based on their assigned functions, tasks, and powers:
Focus on implementing tasks to resolve difficulties and obstacles in credit, corporate bond markets, real estate markets, and fuel management, ensuring stable, healthy, transparent, safe, and efficient operations in accordance with the Prime Minister's instructions in Official Telegram No. 10/CD-TTg dated February 7, 2023; proactively and promptly report to the Prime Minister of the Government for consideration and direction on issues beyond their authority.
Focus on resolving difficulties and obstacles in credit, bonds, and real estate markets
What Are the Requirements for Implementing the Socio-Economic Recovery and Development Program?
According to provisions in Section 2 of Resolution 31/NQ-CP 2023, the Government of Vietnam has set forth the following requirements for implementing the Socio-Economic Recovery and Development Program:
The Government of Vietnam generally agrees with Report No. 1439/BC-BKHDT dated March 2, 2023, from the Ministry of Planning and Investment on the implementation status of the Socio-Economic Recovery and Development Program (Program). To date, over VND 81.1 trillion in support policies has been disbursed. However, VND 14.152 trillion across 50 projects is still finalizing procedures for reporting to the National Assembly Standing Committee; the implementation of the 2% interest rate support policy remains very slow; there are no prompt plans for handling surplus central budget savings from 2021 after supporting housing rental payments for workers. The Government of Vietnam requires:
Relevant Ministries, Agencies, and Localities:
- Urgently approve investment policies, make investment decisions, and prepare necessary conditions to allocate and implement investment projects under the Program, ensuring quality and progress as required.
- Require 18 ministries and localities (Quang Ngai, Dien Bien, Binh Phuoc, Ninh Thuan, Quang Tri, Lang Son, Phu Tho, Binh Thuan, Dong Nai, Khanh Hoa, Lao Cai, Binh Duong, Dong Thap, Bac Giang, Dak Lak, and Ho Chi Minh City; Ministries of Public Security, Defense) to swiftly complete investment procedures for projects, send them to the Ministry of Planning and Investment to report to the Government and the National Assembly Standing Committee by March 31, 2023, regarding the VND 14.152 trillion under the Program; bear responsibility to the Government and Prime Minister in case of non-allocation due to non-compliance with the timeframe specified.
- Report monthly on the implementation and disbursement status of the Program's capital plan on the National Public Investment Information System as guided by the Ministry of Planning and Investment.
State Bank of Vietnam:
Take the lead and cooperate with relevant agencies to review and propose amendments to Decree 31/2022/ND-CP on interest rate support from the state budget for loans of enterprises, cooperatives, and business households; assess feasibility, potential disbursement amounts by the Program's end date, and plans for any unutilized funds, and report to the Prime Minister by March 8, 2023.
Ministry of Labor - Invalids and Social Affairs:
Lead and cooperate with the Ministry of Finance to review and urgently propose a plan to handle increased revenue and central budget savings from 2021 remaining after supporting housing rental payments for workers, according to tasks assigned in Clause 4, Section II of Resolution No. 10/NQ-CP dated February 6, 2023, report to the Government by March 15, 2023.
Urgently Submit Tax and Fee Exemption and Reduction Plans; Complete Comprehensive Report on the Global Minimum Tax Mechanism
In Subsection 3, Section 1 of Resolution 31/NQ-CP 2023, the Government of Vietnam requires the Ministry of Finance to take the lead and cooperate with agencies and localities to urgently submit to competent authorities plans for tax and fee exemptions, reductions, extensions, and deferrals of taxes, fees, land rent, and land use levy for enterprises and individuals applicable for 2023 as directed by the Prime Minister; report to the Government by March 15, 2023.
Additionally, the Government of Vietnam requires the Ministry of Finance to perform the following tasks:
- Implement reasonable, focused, and targeted expansionary fiscal policies to support enterprises and citizens, reduce input cost pressures, promote production, and lower output prices to help control inflation and boost growth.
- Continue implementing tight fiscal management solutions to ensure accurate and timely revenue collection, especially from e-commerce, digital platforms, food services, and retail stores; enhance anti-revenue loss measures; thoroughly save on expenditures, and cut down on non-essential, non-urgent spending.
- Lead and cooperate with the Ministry of Planning and Investment and relevant agencies to urgently complete the research and comprehensive report on the global minimum tax mechanism; report to the Prime Minister within March 2023.
- Urgently prepare an additional evaluation report on the 2022 state budget performance and the implementation status of the 2023 state budget plan to report to the Government before presenting it to the National Assembly at the 5th Session.
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