Prime Minister requests support for businesses to promote production

Prime Minister Pham Minh Chinh has just signed Official Dispatch No.103/CD-TTg on supporting businesses to overcome difficulties and promote production and business activities in late 2024 and the following years.

The dispatch clearly stated: After nearly 40 years of innovation and development, Vietnam has had large enterprises able to compete globally. In the context of many changes in global politics and economy, with new protectionist trends associated with the latest technical and commercial requirements, Vietnam needs policies to develop enterprises with the leading capacity to create new economic momentum. This will improve productivity and promote innovation in critical national economic sectors and fields and emerging industries and fields.

The Government forecasts that by the end of 2024 and the following years, Vietnam's economy will face many challenges, and the internal strength of enterprises, especially the private economic sector, will still face many difficulties. Therefore, ministries, branches, and localities need to continue to firmly and promptly direct and operate with the spirit of taking people and enterprises as the center of the subject, maintaining and ensuring the synchronization between policies and policy implementation, strengthening trust, improving people's lives, and enhance the capacity of enterprises.

Prime Minister Pham Minh Chinh specifically requested ministries, branches, and localities to focus on directing resolutely and implementing solutions to support enterprises, especially small and medium enterprises.

Accordingly, policies must ensure strong development and create conditions for enterprises to improve their competitiveness, develop domestic value chains, and support industries.

Promoting public-private partnership mechanisms is also crucial to creating breakthroughs in green economic development, including renewable energy, hydrogen production, and green ammonia with competitive value.

The Prime Minister requested agencies to review and cut unnecessary administrative procedures to reduce business costs and facilitate production and business activities.

Also, promoting innovation is emphasized, considering it the main driving force for sustainable economic development. The Ministry of Finance is assigned to develop appropriate tax policies to support small and medium-sized enterprises.

The Prime Minister requested the Ministry of Planning and Investment to study and perfect institutions, mechanisms, and policies for rapid, comprehensive, and sustainable business development, especially to encourage innovation, promote the endogenous strength of businesses, and contribute to the economy...

The Ministry of Information and Communications urgently studies and perfects the draft of the government's resolution on digital transformation. At the same time, he presides over and coordinates with the Ministry of Science and Technology to build institutions for managing artificial intelligence (AI) in Vietnam, focusing initially on ethical rules, governance frameworks, risk management, product appraisal and evaluation frameworks, and systems of standards and regulations on AI.

The Ministry of Industry and Trade strengthens trade promotion support to diversify production, supply chain markets, etc., and promote businesses to export products to foreign markets. Research and organize fairs and consumer festivals to stimulate consumption and increase purchasing power in the domestic market.

The Ministry of Natural Resources and Environment is researching and developing mechanisms and policies on resource circulation to promote green transformation, circular economy, resource-saving, environmental protection, and carbon reduction.

In particular, the Prime Minister assigned the State Bank to direct credit institutions to continue to reduce costs, increase the application of information technology to reduce lending interest rates, promote credit growth, focus on production and business sectors, priority sectors, and growth drivers of the economy...

Official Dispatch 103/CD-TTg was issued based on the proposal of the Private Economic Development Research Board (Board IV) - under the Prime Minister's Advisory Council for Administrative Procedure Reform in the recently published Business Confidence report.

In this report, Board IV said that up to 60% of enterprises still have a negative assessment of the current economic situation. In particular, the private economic sector clearly shows a "loss of steam" compared to other industries.

Although the Government's support policies such as tax reduction, land rent reduction, and debt restructuring have been effective, enterprises still face many difficulties. Challenges include lack of orders (56.1%), the risk of criminalizing economic transactions (47%) and administrative procedures (44.4%).

Notably, up to 68.5% of enterprises plan to reduce their scale or temporarily suspend their business in the next 12 months. This ratio shows that the internal strength of enterprises has been seriously eroded after the COVID-19 period and prolonged inflation...