Need “special medicine” for the economy

With a stable macro economy, no need to worry about re-inflation

Deputy Phan Van Quy (from Nghe An province delegation and he is also a businessman) noted that "in recent months the economic situation has “breathe” more easily with convenient access to capital, low interest rates.... Currently, the bank examines the feasibility as the first priority before the mortgage problem in the updated loan approval process.”

Many deputies said that the Government’s actions on social security, social stability are highly appreciated. "If the target based on curbing inflation, stabilizing the macro-economy in 2013, according to this target, macro economy has been stabilized. And with purchasing power for the 2013 and 2014, we will not worry about re-inflation, instable exchange rate." Deputy Tran Du Lich commented on the light of the economy.

Deputy To Van Tam (Kon Tum) said that in the first 4 months of this year, the Government's actions on reducing economic recession, ensuring security, social stability are highly appreciated . The Government's report is clear and honest.

However, deputy To Van Tam was concerned with the reduction of inventory on the Government’s report. Inventory of processing industry on 1/4/2013 increased by 13.1%, lower than the 21.5% in late 2012. Deputy Tam said that the correct expression is the reduction rate of inventory.

In this context, the Minister of Industry and Trade Vu Huy Hoang (Lang Son province deputy) said that there are two forms of inventory which are the norm inventory and excess inventory. In particular, the norm inventory ratio is usually around 10%. To the date of 31/12/2011, the rate of general merchandise inventories increased 31% compared to 31/12/2010. Until 31/12/2012, inventory ratio came down to 21.5% and on 1/4/2013, the inventory ratio was at 13.1% as reported by the Government. As a result,  the rate of inventory of business has gradually reduced.

Focus on economic recovery in the domestic sector

However, besides the bright spots, deputy Tran Du Lich said that the economy still has some weakness. Previously, economic growth is due to four factors: the increase in agricultural production is high and stable, the operation of state-owned enterprises, private enterprises and enterprises with foreign investment. However at the moment, economic growth is mainly based on foreign investment. Deputy Tran Du Lich expressed the concern about reducing the competitiveness of the business sector in the country.

Sharing this view, many delegates from Ho Chi Minh City raised the need to revive the economy, focus on regional economic recovery in the country.

According to deputy Tran Du Lich, it is necessary to harmony monetary policy and removing credit growth because the balance is not very high when interest rates dropped to 8-9% and business face more difficulties in borrowing now.

Regarding to the fiscal policy, the debt control is needed, however in 2-3 years, the National Assembly needs to review overdraft limits in different forms and pay off construction debts to increase aggregate demand. It is essential to closely monitoring to avoid losses in construction investment.

Back to operation, Deputy Tran Du Lich said that the Resolution 01, 02 of the Government's programs address the difficulties of the economy in the long term, however the solution should be linked to medium term (within 3 years from 2013 to 2015) to effectively rescue businesses.

Looking at the competitive aspects of economy, deputies Huynh Minh Thien and Truong Trong Nghia (Ho Chi Minh City delegation) that the investment rate is a factor decisions for economic growth. Thus the proportion of capital investment / low GDP growth rate, while restructuring the economy has not significantly effective. Therefore, the Government should choose a number of areas of economic and business restructuring.

Need to focus on  agricultural sector

In addition, some deputies noted that agriculture is one of the most important sector in each economy in difficult periods, however at the moment agriculture sector has not been strongly invested.

Too much dependency on foreign investment  has a major impact on the stability of peasant life. Deputy Nguyen Thi Quyet Tam noted on the issue and requested the Government to clarify policies for agricultural investment.