I and a few colleagues have been consulted by the Director of the Prime Minister to invite the policies to minimize the impact of COVID on the economy.
The virus has reversed every plan, and we are forced to “heal” with a new future-permanently permanent. The big question is that the government is: with very limited resources, any solution can have an immediate and most positive impact on Vietnam’s economic growth from now until the end of the year and to 2021. We call the current post-COVID crisis phase.
I have shared my opinion with professionals and managers. In my way, to preserve GDP in the short and medium-term, there are many group solutions. In addition, Viet Nam’s priorities can be done as soon as possible: support and promote new economic growth motivation, increase the competitiveness of exported goods, and internal strength. It is particularly focused on soft infrastructure and hard infrastructure.
Firstly, a thriving contactless economy. In fact, it is a result that we pursue a strategic upgrade to the telecommunications infrastructure to support the development of digital economy-soft infrastructures.
The new Vietnam has about 50% of the population using the Internet, mainly concentrated in the urban area, which connects largely via smartphones. In addition, the quality of the Internet in Vietnam is increasingly poor. The condition for being able to develop the digital economy is to focus resources on upgrading the current telecommunications infrastructure, nationwide coverage of 4G technology in rural and mountainous areas, 5G in large municipalities, investing in the infrastructure of broadband Internet connection, to invest in more fiber optic cable to ensure the transmission line is not broken.
If the state subsided, free use of the Internet for rural areas, the mountain will create an important breakthrough to increase the reach of economic online. The rural Internet has not been universally visited, the free is a very good policy, newly populated, medium to economic and social, and not so costly. This is also the basis for being able to adopt non-contact public services such as administrative procedures, online learning, prevention, and remote treatment, promoting the application of technology in the development of new non-contact economic sectors.
Secondly, continue to promote hard-to-infrastructure development investments, including logistics and reducing logistic-related costs. Vietnam is the country with the world’s most open economies. The total flow of goods entering-out in Vietnam is estimated at 500 billion per year, twice the GDP. The national logistic cost now accounts for 21% of the highest GDP in the world. This new fee reduction increases the competitiveness of Vietnamese goods and promotes export.
What I want to emphasize here, the removal of congestion points at the key gate to help goods export and import is quickly customs, reducing costs, contributing to improving the competitiveness of Vietnamese goods. How to improve infrastructure for 12 main gates, where over 90% of the total cargo is passing, including Noi Bai and tan Son Nhat Airport; The port complex of Ho Chi Minh City, Hai Phong, Vung Tau, Cai Lan, Tien Sa; Lang Son border Gate Complex, Quang Ninh, Lao Cai, Quang Tri, and Tay Ninh?
Private domestic aviation gate, currently accounting for 75% of the value of goods exported through the air, is very necessary to accelerate the construction investment of road distilled, third landing, upgrading cargo terminal, construction of the transport warehouse. The “Eagle” as Samsung, Apple will not expand production in Vietnam if it sees the lower road, take off is increasingly clogged. In addition, strengthening the customs capability to quickly customs clearance of goods through the addition of human resources to these gates, reducing the procedures for the fastest customs clearance in all ways can be “untied” for exported and imported goods.
Cargo transportation is up to 75% of the total cargo in Vietnam. Petrol cost and highway charges account for an enormous proportion of the cost of transport enterprises. The government if it boldly removes all taxes and charges associated with petroleum, which are accounted for 64% of the current petrol price, will create breakthroughs. It would be much better if the state supports the enterprise through the payment of their road charges including BOT fees-what is causing pressing. Tax reductions and fees are always in immediate impact on businesses. Previously no COVID, businesses might not need it. Now, the above interventions will help the logistic costs to be reduced instantaneously and increase their strength.
Renewable energy is the new trend in humanity. Vietnam has tremendous potential for renewable energy, especially solar power and wind power. However, private businesses remain unconcerned for producing solar power but are not connected to the National electricity network. In addition, the policy on electricity prices is always determined, annual change and the text is often very slow is the main impede for the development of new and sustainable energy sectors in Vietnam. If infrastructure upgrades for points have been planned for renewable energy development, there is a stable and permanent electricity price policy – at least 5 New Years revised once-one can promote social investment and reduce environmental pollution that is increasingly exacerbated by thermal power plants.
Finally, all government prices must retain the power of the two important strongholds of the economy is HCMC and Hanoi to avoid a complete collapse.
The problem is, in order to do the above changes, we will have to swap by drastically reducing the budget revenues and overspending will increase greatly. I look forward to the reforms of the government that will receive the consensus and support of the Parliament.
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Heals with the future
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