Deputy Minister of Finance Vo Thanh Hung met with Mr. Paulo Medas, who leads the Fund's international currency (IMF) section IV consultation mission on June 26. Along with specialists and IMF office staff in Vietnam, Mr. Jochen Schmittmann, Chief Representative of the IMF Office in Vietnam, and leadership officials from several functional units under the Ministry of Finance also attended the conference.
Deputy Minister of Finance Vo Thanh Hung. Photo: Tue Anh
The macroeconomic environment and the trajectory of Vietnam's fiscal policy were discussed by Mr. Vo Thanh Hung. With growth reaching 5.05% and inflation only rising by 3.25%—below the National Assembly's target—Vietnam's economy is expected to perform well in 2023. This demonstrates how well the Vietnamese government is doing in preserving social security and stabilizing the macroeconomic model.
Compared to early 2023, Vietnam's economic climate is much more favorable for trade and investment in the first few months of 2024. The state of the global economy is still very uncertain. This attests to the efficacy of the government's management and administration initiatives put into practice recently. Moreover, Vietnam's economy will continue to encounter numerous obstacles in the future, and domestic inflation pressure is expected to rise. In order to attain the highest aspirations set forth by the Government and National Assembly, the Government must remove obstacles for production, export, and business, guaranteeing significant economic balances.
.JPG)
Head of the IMF's Article IV Consultation Delegation, Mr. Paulo Medas. Photo: Tue Anh
Deputy Minister Vo Thanh Hung confirmed that economic measures will keep being offered. These policies include prolonging the time frame for reducing value-added tax implementation and extending the deadline for filing taxes and paying land rent.
Mr Vo Thanh Hung stated that the Ministry of Finance has received technical assistance from the IMF in numerous significant industry domains, consequently enhancing establishments and fortifying the Ministry of Finance's capability in managing public debt, treasury management, and tax management. Financial Ministry Respect Vietnam's and the IMF's pragmatic and productive partnership. The delegation's suggestions have enhanced public financial management practices and fiscal policies.
.JPG)
Meeting overview. Photo: Tue Anh
During the meeting, Mr. Paulo Medas expressed his appreciation for the Ministry of Finance and the Vietnamese Government's efforts to refine and modernize the institutions and policies pertaining to public financial management. Mr. Paulo Medas said that Deputy Minister Vo Thanh Hung's discussions gave the group an overview of macroeconomic conditions as well as the benefits and obstacles that the Vietnamese economy is facing.
Mention the topics covered by section IV recommendations of the Ministry of Finance and the content of fiscal policy. Vietnam must keep bolstering fiscal discipline, upgrading the medium-term financial framework, and fortifying its fiscal framework.
Along with that, the delegation recommended that Vietnam continue to increase revenue mobilization to reverse the trend of tax base erosion, creating space to strengthen the social safety net, invest in infrastructure and solve problems; climate change issues, promoting the Tax System Reform Strategy for the period 2021-2030 and some recommendations on improving the function of the capital market
Translator: Thúy Nga
Loading...
