The financial support package this year is small, scattered, and the formalities are still very complicated.
"The most painful thing is that administrative procedures are still very cumbersome, so the implementation of this packet is poor and slow," said Lan.
"I hope the State learns from the lessons of 2020 and 2021, listens to recommendations of people, businesses, research institutes and international organizations so that we can implement the motto ‘live safely with Covid-19’ in the future,” she added.
Regarding the financial support package, Lan expects the solutions to be implemented quickly and over a long period. If the support package is carried out in a short period of time, it is not enough for businesses to recover because in some cases it will take businesses until 2023 to recover. Measures to stimulate consumption are important to both directly help people and increase domestic demand. It is also a solution to help Vietnamese businesses, especially small and medium enterprises, because most local enterprises operate in the domestic market.
Expert Can Van Luc said the total assets of the banking system account for 61% of the total assets of the financial system assets, stock market capitalization 25%, bond market 13%, and premium revenue 1%. As for the capital structure to contribute to the economy's social investment, in the past five years, the credit channel has accounted for about 50%, the securities channel 15%, public investment 15%, and FDI more than 20%.
Luc noted that many policies were "not feasible". At present, it is necessary that the current support packages perform well. As for the upcoming packages, they must be estimated carefully. The number mentioned by many experts is 800 trillion VND, which Luc thinks must be calculated very carefully. Because of the listed resources for this support package, there are resources that cannot be used, such as the budget capital planned for public investment that is worth several hundred trillion of VND.
Besides solutions such as reducing costs of electricity, environment, traffic, trade union, insurance, and more, Pham Chi Lan suggested that this financial support package should include measures for businesses to improve their competitiveness through technological innovation, restructuring, management improvement, and labor training. These are the factors that can help businesses recover, increase competitiveness and develop more in the future.
Lan also emphasized what many experts have mentioned, which is to continue to improve the business environment, because this is as important as financial solutions, even more than financial aid in the long run.
Emphasizing that competitiveness will promote finance for development, Jonathan Pincus, Senior Economic Advisor of the United Nations Development Program, said that if Vietnamese companies cannot compete domestically and internationally, domestic investment and savings will not increase.
Information on the interest rate support package to stimulate demand for the next two years has stirred mixed reactions from National Assembly deputies, which is similar to what happened to the US$1 billion stimulus package in 2009.
The Ministry of Finance has advised the Government to launch a demand stimulus package through an interest-rate subsidy, worth VND20 trillion a year and VND40 trillion for two years.