Vietnam national university of economics and business

2.6.2. Positive impact

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  Cut the basic interest rate to 7%/year
  
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  Reduce the required reserve deposit ratio
  
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  Implement demand-stimulating solutions such as: Supporting short-term lending interest rates for corporate and individual customers serving production and business from February 1 to December 31, according to Decision 131 of the Government's Decision No. Prime Minister and Circular 02 of the State Bank, reducing VAT, reducing CIT…
  
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  Provide guarantees for businesses to borrow capital through the Vietnam Development Bank according to Circular 14 of the Ministry of Finance.
  
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  Regarding foreign affairs:
  

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  Must closely monitor and evaluate the daily changes in the world, especially those that have a lot of economic relations with our country such as the US, Japan, Korea, China and ASEAN countries…
  
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  China is a very large market, close to Vietnam, imported from China in 2007 was nearly 1000 billion USD.
  
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  Chinese industrial goods have flooded into Vietnam, causing a serious imbalance in our foreign trade balance. Efforts to replace Chinese imports in the domestic market and boost exports to the Chinese market will contribute to stabilizing the macro-economy and increasing the competitiveness of Vietnamese industrial goods in the world market.
  

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  Regarding internal affairs:
  

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  Prioritize solving the problem of unemployment. On this occasion, banks must be made healthy, which has always been the weakest sector in our economy. Specifically, it is necessary to have a team of good economic and financial experts and to listen to them.
  
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  The current stimulus should not only solve the immediate recession but should be oriented on increasing supply for the coming period, increasing production capacity and competitiveness when the world economy recovers and also long term.
  
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  Only invest in public investment in real weak points in the economic stratum. For example, National Highway 1 needs to be opened and upgraded immediately, especially in the North Central and Central Coast regions, with more herringbone roads connecting villages with National Highway 1.
  
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  Preferential credit should give priority to small and medium-sized enterprises, which create many jobs but have difficulty in accessing capital.
  
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  Focus on building affordable housing for low-income people, especially in areas adjacent to industrial zones. Investment in this direction has both social security effects, while creating conditions for improving the labor market and stabilizing production for the coming period.
  
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  Invest in improving education infrastructure, especially at primary level in remote and isolated areas. Investing in this direction is important in the long run.
  
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  Although by the end of 2009, the world economy in general and Vietnam's economy in particular had basically escaped from the crisis, but the heavy consequences of this crisis had not yet been overcome. Therefore, in the coming period, our country needs to implement solutions to stabilize and promote export activities as well as economic growth.