PM asks for measures to boost domestic production and consumption

Prime Minister Pham Minh Chinh has asked the State Bank of Vietnam (SBV) to implement a proactive, flexible, and effective monetary policy, in harmony with the fiscal policy to support production and trade and boost domestic consumption.

This is part of the tasks set by a directive signed by the PM on August 27 on stimulating domestic consumption, promoting production and business, and boosting market demands.

The PM requested the central bank to continue directing measures to boost credit growth, focusing on production and trade activities, priority fields and growth drivers.

The Ministry of Finance (MoF) was instructed to manage an expanded fiscal policy effectively, coordinate with monetary and macroeconomic policies to boost growth, stabilize the economy, control inflation, and ensure major balances of the economy.

The MoF was also required to speed up the disbursement of funds to implement trade promotion programs to boost consumption of domestic products; and coordinate with relevant ministries and agencies to review and propose tax policies for production projects to replace imported goods.

The Ministry of Industry and Trade was tasked to enhance the integration between production and distribution, improve links in the commodity value chain and support businesses to boost exports.

Regarding general tasks, the Government leader calls for the prompt activation of investment projects aimed at creating new production capacities. This includes focusing on reviewing and prioritizing measures to overcome challenges related to public investment disbursement, credit packages, land issues, and policies to unlock social resources serving projects in line with market scale and signals.

It is also necessary to introduce policies to encourage consumption and investment in sectors where domestic production has strength and the domestic market has demands, while implementing those supporting domestic enterprises in joining the supply chains of support industry products by foreign-invested companies in Vietnam, according to the directive.

Ministries, agencies, and local authorities were requested to deploy digital transformation technologies, including AI, big data, and blockchain, to further enhance administrative reforms and simplify procedures.