return icon Vietnamnet.vn

Big challenges await new government

VietNamNet Bridge - The public debt has hit a ceiling, the state budget is under strain, and enterprises’ competitiveness remains weak – all these will be great challenges for new cabinet.
VietNamNet Bridge - The public debt has hit a ceiling, the state budget is under strain, and enterprises’ competitiveness remains weak – all these will be great challenges for new cabinet.

{keywords}
The public debt has hit a ceiling, the state budget is under strain, and enterprises’ competitiveness remains weak – all these will be great challenges for new cabinet.

Citing an official report which says the public debt reached 62.2 percent of GDP in 2015 and the government’s debt reached 50.3 percent, La Ngoc Thoang, a National Assembly’s Deputy from Cao Bang province, said this would be a great challenge for the new government in the next tenure.

“The government debt comprises state-owned enterprises’ government-guaranteed debt. Meanwhile, many enterprises in the economic sector have been performing ineffectively, which is really a big concern,” Thoang said. 

The National Assembly’s deputy said that the high public debt, the high number of bankrupt enterprises, plus the difficulties in collecting debts in the context of the global integration and free trade agreements all have made Vietnam on a tight budget.

Therefore, he said, the new government needs to apply policies which give strength to enterprises to help them maintain production. 

The high public debt, the high number of bankrupt enterprises, plus the difficulties in collecting debts in the context of the global integration and free trade agreements all have made Vietnam on a tight budget.

This is the best way to increase the budget revenue, because it is enterprises which pay money to maintain the state apparatus.

“No one can say the figure of 20,000 dissolved and bankrupted businesses in the first three months of the year is ‘normal’. This is clearly a big challenge for the government headed by Prime Minister Nguyen Xuan Phuc,” he commented.

Meanwhile, Tran Khac Tam, a National Assembly’s Deputy from Soc Trang province, emphasized the importance of institutional reform. Hundreds of hours for customs and tax procedures have been cut. However, businesses still complain that procedures remain very complicated and time consuming.

"Reform must be considered the driving force for economic growth. If we stop the reform now, we will lag far behind other countries which are always moving ahead,” he commented.

Tam hopes that Phuc, who conducted the Program 30 on administration reform, has good experiences in the field to lead the apparatus to more brilliant achievements.

Tam, who is also a businessman, wishes that the government will pay appropriate attention to help improve Vietnamese enterprises’ competitiveness.

“We can feel the heat of TPP now. If Vietnam cannot manage well, it, being the weakest economy among the 12 member countries, would see its businesses swallowed by powerful international conglomerates,” he said. 

Noting that many seafood consignments exported by enterprises in his area have been rejected by European importers because of high antibiotic residue, Tam said many production fields have been developing without prior planning, which is a weak point for Vietnam in global integration.

Chief of the Government Office Mai Tien Dung also admitted that the weak competitiveness of Vietnamese enterprises will be a problem.


VNE

MORE NEWS

FDI hoped to help realty market develop sustainably in long term

Vietnam’s real estate sector last year attracted an additional 1.85 billion USD in foreign direct investment (FDI), retaining its second place among industries drawing FDI with combined investment of 4.45 billion USD.

Party chief’s book on fight against corruption and negative phenomena released

A ceremony was held in Hanoi on February 2 to release the book by General Secretary of the Communist Party of Vietnam (CPV) Nguyen Phu Trong.

Make in Vietnam drives ICT firms into international markets

Global expansion has become a trend in domestic ICT enterprises in recent years.

Schools launch digital-related majors to meet students’ needs

In 2023, many universities have launched new subjects associated with the digital era to meet students’ needs.

Southeast region prepares for new FDI wave

The southeast region is preparing conditions in infrastructure, administrative procedures and human resources to welcome a new wave of foreign direct investment (FDI), as investors have flocked to the region from the beginning of this year.

VIETNAM NEWS HEADLINES FEBRUARY 2/2023

PM chairs monthly teleconference with localities

Experts call for stricter penalties as drink driving soars over Tet

The maximum punishment for car drivers with alcohol concentration levels exceeding 0.4mg per litre of breath, or 80mg in 100 ml of blood, is a fine of VND40 million (US$1,693) and a two-year suspension of their driving licences.

Over 32% of apparel firms remain closed in Hanoi

Nearly a third of textile and garment firms have yet to reopen in Hanoi although the Lunar New Year holiday has ended.

Domestic tourism hits five-year high

Domestic tourism numbers hit 13 million in January, the highest in the last five years, according to the Vietnam National Administration of Tourism.

VIETNAM BUSINESS NEWS FEBRUARY 2/2023

Businesses exporting medicinal herbs to China required to register

Cashless payments on the rise: convenience and security for expats in Vietnam

As digital payment methods surge in popularity, expats in Vietnam are not alone in embracing the change to cashless transactions.

My Dinh Stadium needs money for more upgrading

Having been upgraded with a package worth VND408 billion, My Dinh Stadium is still in poor condition.

Vietnam needs more submarine cables to ensure internet services

Vietnam will need at least two or three more submarine cables to ensure proper internet services for the country's development in the next five years, according to Vu The Binh, Secretary-General of the Vietnam Internet Association.

Government convenes January meeting

The Government convened its first regular monthly meeting for 2023 in Ha Noi on Thursday under the chair of Prime Minister Pham Minh Chinh.

Scammers steal information, money on first days of Year of the Cat

The first days of the New Year are the time for scammers to increase their activities. The most common tricks are stealing information and money from victims’ accounts.
back_to_top