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Jul 13, 2022 / 16:44

Vietnamese Gov’t considers further tax cuts to support businesses, people

The country is on track to reach a GDP growth of 6.8-7% this year.

Government agencies are tasked with considering tax cuts to support businesses and people for speedy recovery in the post-pandemic period.

 Deputy Prime Minister Le Minh Khai at the meeting. Source: VGP

Deputy Prime Minister Le Minh Khai urged relevant bodies to weigh tax relief options during a meeting of the National Financial and Monetary Policy Advisory Council on July 12.

According to Khai, Vietnam's economy has been on the path of recovery and has achieved positive results in various fields, such as second-quarter GDP growth, which is the highest in the past 11 years at 7.72 % YoY, stable macroeconomic conditions and inflation under control.

Khai, however, noted unstable global political environment, risks from the Covid-19 pandemic, and food, and energy security are posing headwinds to Vietnam’s economic prospects.

Economist Tran Dinh Thien noted amid the grim global economic outlook, Vietnam remains a bright spot with a strong economic recovery.

“The country is on track to reach a GDP growth of 6.8-7% this year,” Thien said.

While inflationary pressure remains an issue, Thien suggested the Government should not overestimate the risks.

“Management of monetary and fiscal policies should be cautious and take into consideration the long-term prospects,” he added.

Meanwhile, economist Tran Du Lich urged more efforts to soonset the US$15.4-billion socio-economic recovery program in motion.

“Vietnam has ahead of it huge opportunity for economic growth,” Lich said and stressed the necessity to capitalize on the situation and step up development.

In response, Deputy PM Khai said the Government would continue to stay focused on stabilizing macroeconomic conditions and controlling the inflation.

Khai requested the State Bank of Vietnam to continue providing support for businesses and people via policy rate management, and encourage commercial banks to cut interest rates for customers.

“A priority should given to restructuring credit institutions and addressing bad debts,” Khai said.

In addition, the Ministry of Finance would continue to ensure the healthy development of the capital market and adjust tax rates on petroleum products to contain inflation.

The Ministry of Industry and Trade is responsible for a steady supply of strategic commodities to stabilize market prices.