To submit the draft Law on amendments to Law on Credit Institutions in March 2023 in Vietnam

To submit the draft Law on amendments to Law on Credit Institutions in March 2023 in Vietnam (Internet image)

The Government of Vietnam approved Resolution 31/NQ-CP dated March 7, 2023 at the regular Government meeting in February 2023.

Thus, the issue of reducing the lending interest rate and ensuring a reasonable interest rate for people and businesses is regulated as follows:

1. Submitting the draft Law on amendments to Law on Credit Institutions in March 2023 in Vietnam

The State Bank of Vietnam shall assume the prime responsibility for, and coordinate with agencies and localities in:

- Operating monetary policy tools firmly, proactively, flexibly, and effectively;

Closely and synchronously coordinating with fiscal and other policies, contributing to maintaining macroeconomic stability, controlling inflation, stabilizing money and foreign exchange markets, and promoting growth.

- Managing credit growth in accordance with a reasonable structure, timely meet the credit capital demand for the economy.

Directing credit institutions to apply credit-oriented measures to production and business fields, priority areas, and growth drivers;

Controlling credit risk in potential risk areas; reducing the lending interest rate, increasing access to capital for people and businesses, ensuring a reasonable and effective interest rate, and keeping it in line with the requirements of inflation control.

Having appropriate credit solutions, contributes to removing difficulties for the real estate market and other markets.

Managing the appropriate exchange rate, ensuring the safety of the banking system.

- Focusing on effectively handling weak commercial banks, ensuring liquidity and system safety, and focusing on handling bad debts and limiting new bad debts;

Strengthening inspection and supervision. Urgently finalize the draft Law on Credit Institutions (amended), and submit it to the Government in March 2023.

2. Submitting plans for exemption, reduction, tax, fee, and land use levy in Vietnam

The Ministry of Finance of Vietnam shall assume the prime responsibility for, and coordinate with agencies and localities in:

- Implementing reasonable, focused, and focused fiscal policy, focusing on supporting businesses and people to reduce input cost pressure, promote production, and reduce output prices to help control inflation and promote growth.

- Continuing to implement solutions to strictly manage revenue sources and ensure correct, sufficient, and timely collection, especially from e-commerce, digital platforms, food services, retail stores, etc.;

Strengthening against loss of revenue;

Thoroughly save money, cut regular expenses, and delegate tasks that are not really urgent.

- Urgently submitting to competent authorities a plan for exemption, reduction, extension, postponement, and extension of taxes, fees, charges, land rents, and land use fees for businesses and people to apply for in 2023, according to the direction of the Prime Minister; report to the Government before March 15, 2023.

- Assuming the prime responsibility for, and coordinating with the Ministry of Planning and Investment and relevant agencies, expeditiously completing the study and finalizing the overall report on the global minimum tax regime; reporting to the Prime Minister in March 2023.

- Expeditiously developing a report on an additional assessment of the results of the implementation of the state budget in 2022 and the implementation of the state budget estimate in 2023 to report to the Government, before submitting it to the National Assembly at its 5th session.

3. Issuance of decree on adjustment of pensions and social insurance allowances in Vietnam

The Ministry of Labor, War Invalids, and Social Affairs of Vietnam shall assume the prime responsibility for, and coordinate with agencies and localities in, continuing to closely monitor the situation of workers losing their jobs and reducing working hours, especially in industrial parks, in order to have a support plan in case of need;

Research and report to the Government on the promulgation of the decree on adjustment of pensions, social insurance allowances, and monthly allowances, and the amendment and supplementation of Decree 75/2021/ND-CP dated July 24, 2021, stipulating the levels of allowances, and preferential regimes for people with meritorious services to the revolution.

More details can be found in Resolution 31/NQ-CP dated 7/3/2023

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