Public investment disbursement crucial for recovery

The Ministry of Industry and Trade said many policies have been issued and realized to help manufacturers overcome difficulties

The most recently surveyed businesses attributed the decreasing number of orders to the declining demand that fell for the fourth month in a row, as well as deteriorating market conditions. Some other reports show that the power shortages in Vietnam have held back growth, causing the output in all consumer goods, intermediate goods and capital investment goods sectors to decrease.

According to S&P Global, the weak demand eased pressure on prices in June. The input costs fell for the second consecutive month, experiencing the sharpest and fastest decline since April 2020, leading to decreases in output prices that have fallen for the third consecutive month. This is the biggest decline over the past three years.

The decreasing demand has made goods delivery shortest in the last 12 years.

The Ministry of Industry and Trade said many policies have been issued and realized to help manufacturers overcome difficulties, including social security and employment policies, and tax and fee exemption and reduction policies. Specifically, the value added tax (VAT) for most items has been reduced from 10 to 8 percent, while the registration fee subject to locally assembled and manufactured cars and the environmental protection tax subject to plane fuel have been reduced by 50 percent. Meanwhile, a 30 percent reduction has been seen in land and water surface rent, and tax and fee payment periods have been extended.

The Government has been speeding up and will continue to accelerate public investment disbursement in 2023, especially in the last months of the year to create a growth breakthrough and give a catalyst to the recovery and growth of steel, construction material, mechanical engineering and other industries.

Speeding up and improving public investment disbursement is crucial for Vietnam’s economic growth in general and promoting domestic production and trading activities in particular.