Minister of Planning & Investment: Many large businesses have sold most of their assets

Minister of Planning & Investment: Many large businesses have sold most of their assets 3
Minister of Planning & Investment: Many large businesses have sold most of their assets 3

The difficult situation of businesses was stated by Minister of Planning and Investment Nguyen Chi Dung when explaining to the National Assembly Standing Committee on socio-economics on the morning of May 9.

According to Minister Dung, the money market was basically stable in the first 4 months of the year, but lending interest rates were still high, an average of 9.56% a year.

`Businesses face cash flow difficulties when operating credit at times of ‘fast release and sudden braking’. Many large businesses have had to sell assets at prices equal to only 50% of real value and the buyers are foreign businesses.

Minister of Planning and Investment Nguyen Chi Dung spoke at the socio-economic discussion session, May 9.

This fact was also stated by Vice Chairman of the National Assembly Tran Quang Phuong.

The Economic Committee’s verification report also shows that the average cash solvency ratio reached 0.09 times (the same period in 2022 was 0.19 times).

`The capital mobilization channel through issuing stocks and corporate bonds is facing difficulties, reducing its role in mobilizing capital for the economy,` noted Chairman of the Economic Committee Vu Hong Thanh.

The Chairman of the Economic Committee said that if the economic situation does not improve, bad debt will increase and the financial capacity of commercial banks will be eroded.

`It is necessary to proactively change the operating state from tightening and being cautious to adapting and loosening appropriately, continuing to lower operating interest rates to support growth in the context of inflationary pressure and exchange rates that are no longer too high.

According to the Government’s report, the economy in 2022 will reach 8.2% growth.

According to him, economic growth actually shows signs of decline from the end of the third quarter of 2022, so the Government needs to evaluate the growth chart and analyze the situation more fully to `not feel insecure when growing`.

Mr. Phuong requested the Government to clarify issues related to the real estate market, corporate bonds, and bank weaknesses that have not been completely resolved.

Another bottleneck of the economy mentioned by members of the National Assembly Standing Committee is the `disease` of fear and shifting of responsibility, which occurs commonly in many units and localities.

According to Head of the Delegate Affairs Committee Nguyen Thi Thanh, it is good for officials to be afraid of making mistakes, but `being afraid to the point of being irresponsible and not doing your job is alarming.`

She stated that in reality, the current common situation is that localities `find it difficult to send a document to ask the Central Government, ministries and branches` without being proactive and creative in finding solutions.

`The Government needs to handle some cases of extortion to resolve the fear of responsibility that is quite common in localities, ministries and branches,` said the Head of the Delegate Affairs Committee, and suggested that the Government needs to step up distribution.

This fact was also recognized by Minister Nguyen Chi Dung when citing Ho Chi Minh City, a case he also mentioned at Prime Minister Pham Minh Chinh’s meeting with the Standing Committee of Ho Chi Minh City Party Committee in mid-April. 2022

In the previous period, on average each year, Ho Chi Minh City approved 70 real estate projects, but in the past two years only 8 projects were approved and approved for investment.

`The investment environment is declining. The Ministry of Planning and Investment is assigning affiliated units to review and see which documents of ministries and branches are hindering and clogging economic activities`, Minister Nguyen

Faced with this reality, National Assembly Chairman Vuong Dinh Hue proposed that the Government need to have a solution to overcome a part of officials who avoid, avoid responsibility, are afraid of making mistakes, refuse to do anything, and avoid `pushing subordinates to superiors.`

He also requested that the Government report on additional solutions on administrative reform, improving the business investment environment and tightening administrative and public service discipline.

The socio-economic report will be completed, supplemented by the Government and reported to the National Assembly at the 5th session, opening on May 23.

Mr. Minh

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