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AT A GLANCE Congratulations on New Zealand National Day

15TH NA HOLDS FIRST EXTRA-ORDINARY SESSION NATIONAL ASSEMBLY
During its first-ever extra-ordi- Eastern North-South Expressway project, and one on piloting
nary session, held between Jan- several mechanisms and policies for the Mekong Delta’s Can
uary 4 and 11, the 15th National Tho city. The amendment law allows amendments and supple-
Assembly (NA) discussed and ments to a number of articles in nine laws: the Law on Public
passed three resolutions and an Investment, the Law on Investment in the Form of Public-
amendment law. The resolu- Private Partnership, the Law on Investment, the Law on
tions included one on fiscal and monetary policies to support Housing, the Law on Competition Contractors, the Law on
Vietnam’s socio-economic recovery and development, with a Electricity, the Law on Enterprises, the Law on Special Con-
policy package totaling nearly VND350 trillion ($15.5 billion), sumption Tax, and the Law on the Enforcement of Civil Judg-
another on the investment policy for the second phase of the ments. The amendments will come into effect on March 1.

CLIMATE CHANGE RESPONSE COMPREHENSIVE PROGRAM PROPOSED
Chairing the first meeting of the National Steering Committee for opment, he said, adding that people
the Delivery of Vietnam’s Commitments at the 26th United Nations and businesses should be the center,
Climate Change Conference of the Parties (COP26), on January the subject, the goal, and the driving
13, Prime Minister Pham Minh Chinh, who is also Head of the force of climate change response.
Committee, said there should be a comprehensive approach The Prime Minister emphasized that the climate change fight
adopted to tackling climate change, with the grassroots level being should be synchronously and effectively combined with green and
the foundation for delivering on Vietnam’s commitments. The digital transformation and other transformation. He instructed
commitments made at COP26 to reduce greenhouse gas emissions that, this year, the Steering Committee and relevant ministries
to zero by 2050 and methane emissions by 30 per cent by 2030 are and sectors should build a comprehensive program detailing
in line with the national economic restructuring program and the forecasts, goals, and tasks for climate change response, for submission
global trend towards green, circular, and digital economic devel- to relevant authorities for consideration.

GDP FORECAST TO GROW 6.5-6.7% ECONOMIC GROWTH
A number of foreign financial for Thailand and Vietnam at Standard Chartered, was quoted by
organizations have issued rela- the Vietnam News Agency on January 12 as saying that “the
tively positive forecasts for Viet- economy should continue to bounce back in 2022 as the pandemic
nam‘s economy this year, with improves. Income growth has outpaced spending growth in recent
growth of 6.5-6.7 per cent years; this provides a decent savings buffer against the pandemic.”
expected. Standard Chartered Bank, in its latest reports entitled Meanwhile, the recent “Vietnam at a Glance” report released by
“Still battling headwinds” and “Vietnam - Moving back to high HSBC said that after two years of growth slowdown, the country’s
growth”, wrote that the country’s GDP growth will rebound strongly GDP will accelerate 6.5 per cent in 2022. It noted that Vietnam
to 6.7 per cent in 2022 and 7 per cent in 2023, with the medium- has recovered steadily after hitting a bottom in 2021 and that it
term outlook being quite positive. Mr. Tim Leelahaphan, Economist will regain growth momentum in all respects shortly.

TAX POLICY VAT CUT TO SUPPORT BUSINESSES
According to Minister of Finance Ho Duc Phoc, following the tax reduction, because the former
passing by the National Assembly (NA) of the VND350 trillion would help all businesses, not just
($15.5 billion) economic recovery package, the government is those that posted a profit. The major-
considering cutting value-added tax (VAT) rates for businesses ity of firms will be eligible for the
as part of the stimulus program. The VAT on applicable goods VAT cut, he explained, with the exception being those in the
and services will be cut by 2 ppts to 8 per cent, beginning from fields of telecommunications, banking and finance, property
February. The move is said to amount to a VND49.4 trillion development, mining and metallurgy, refining, and petrochemicals,
($2.17 billion) tax break for businesses; nearly three-times the among others. Products and services not required to pay VAT, or
tax cut they received last year. The Minister also said the at 5 per cent VAT, or under a special VAT rate are, of course, not
government favored a VAT reduction over a corporate income subject to any reduction.

PROJECTS TO FORM PART OF RECOVERY PROGRAM TRANSPORT INFRASTRUCTURE
Minister of Transport Nguyen priority in investment allocation, so that construction can
Van The has said that the min- begin early, they will provide a major push to production
istry is coordinating with rele- recovery, boost the growth of trade and services, and improve
vant ministries and agencies people’s living standards, the Minister noted. Transport infra-
to develop a portfolio of trans- structure development will play a role in rapidly reviving other
port projects and specific mechanisms for their implementation, economic sectors, accelerating public investment disbursement
which will form part of the government’s socio-economic and providing the necessary leverage for GDP growth, he
recovery and development program post-Covid-19. The program emphasized, adding that Vietnam aims to have about 5,000
will be submitted to the National Assembly (NA) for review at km of expressway by 2030, as set out in the Resolution from
its first meeting of 2022. Provided that the projects are given the 13th National Party Congress.

4 | VIETNAM ECONOMIC TIMES | FEBRUARY 2022 www.en.vneconomy.vn