Monday , July 4 2022

Government must carefully manage financial support for businesses: experts

 

A business begins its production in the New Year. More loans from banks will help domestic businesses quickly overcome difficulties and recover production. — VNA/VnExpress News Photo

HÀ NỘI — The Government needs to carefully monitor and outline economic stimulus packages to assist businesses affected by the pandemic to quickly recover the national economy, according to experts.

Prof. Hoàng Văn Cường, vice rector of National Economics University, said the support packages often came through commercial banks in terms of loans with preferential interest rates for businesses.

Cường said the Government should accelerate investment into public infrastructure projects to help remove bottlenecks, create jobs and stimulate production.

He noted that the investment flows must be closely monitored. Otherwise, the resources will be used in potentially risky sectors such as securities and real estate.

Commercial banks therefore must be required to monitor the use of loans to ensure the proper use of investment capital and uncover the use of loans for wrong purposes, he stressed.

Public investment capital should be focused on helping enterprises to shift production methods, and assisting tourism and transport sectors and low-income earners, he added.

According to Đậu Anh Tuấn, head of the Legal Department of the Vietnam Chamber of Commerce and Industry, the National Assembly’s Resolution on restructuring the economy in 2021-2025 sets a target of establishing more than 1.5 million businesses by 2025. This will help create more start-ups, jobs, and State tax collection, as well as solve social problems.

Tuấn said the pandemic had badly affected businesses. Many had to close and stop doing business. However, after the pandemic, many opportunities will be generated and many new businesses will be established.

To recover the national economy, it was essential to assist household businesses and small-micro businesses. Related agencies needed to work out a more specific roadmap for businesses to adapt to the ‘new normal’ situation while applying disease prevention and safety measures.

Economist Lê Đăng Doanh said that Việt Nam needed to control the pandemic if it wanted to recover the economy this year. The vaccination campaign should be accelerated as quickly as possible. In addition, institutional reform should be enhanced while strictly minimising corruption and promoting e-Government to reduce costs and red tape.

Việt Nam needs to outline practical supporting policies that help create favourable conditions for businesses and people to have access to technology, and establish a data warehouse to serve the digital transformation.

Regarding the VNĐ350 trillion (US$15.2 billion) support package, Doanh said that it must be disbursed promptly. To disburse loans for eligible borrowers, digital transformation must be applied as soon as possible.

Dr Phan Lê Bình, a transport expert, said to recover the national economy, investment in the transport sector should also be given priority, including highways, airports and railways. — VnExpress News

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