As local enterprises are grappling with
difficulties, they should be given tax reduction and exemption, meaning the
country should accept a higher budget deficit this year due to falling revenue
for the State coffer and higher spending, heard a seminar in HCM City over the
weekend.
Tran
Hoang Ngan, member of the National Assembly (NA) Economic Committee, told the
“Economic Overview 2012” seminar that he would propose the NA to allow for an
overstretch of the budget deficit target of 4.8%.
The
deficit last year was 4.9% of the gross domestic product (GDP), and the target
set for this year is 4.8%. However, Ngan said he would ask the NA in its
sitting in May to raise the limit.
“The
urgent thing to do now is to cut or reschedule taxes for enterprises. If this
measure is to be accepted, we have to accept falling revenue for the State
Budget and thus a higher deficit. But spending must also be closely supervised
to avoid adverse impacts on the economy,” he said.
He said
the Government would discuss further on corporate tax incentives and draw up a
specific tax policy in May.
The
economy had experienced a staggering development period from 2000 to 2010, with
the annual average GDP growth rate recorded at about 7.26%.
Until
the rate marked its slowdown in 2011, the nation had always seen its credit
growth rate shooting up to over 30% yearly versus the moderate 10% of other
regional countries. This means the Government had injected an enormous capital
volume into the economy.
To
remedy the situation, the Government in Resolution 11/NQ-CP in 2011 insisted on
cutting the economic growth momentum along with the tightening credits in a
cautious way. Besides working as a right therapy for the economy, the new
measures have brought about unexpected side-effect as well, Ngan pointed out.
For
instance, the nation in the first quarter earned a trade surplus of US$220
million while having suffered trade deficits hovering around US$2-3 billion
quarterly in previous years. The rare phenomenon is believed to have partly
resulted from the fact that many companies had gone bankrupt for failing to
survive tough times, Ngan cited.
The
Asian Development Bank (ADB) forecast Vietnam will gain an economic growth rate
of some 5.6% despite its planned target of around 6-6.5%. To secure local
employment rate, the country must grow at over 5%, so it is trying to reach a
5.5-6% growth rate, Ngan clarified.
The
nation’s public debts make up roughly 53% of GDP but the Government affirmed
that there was nothing to worry about if the figure had yet to exceed 65%, Ngan
added.
Saigon
Times
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
Dear
Reader,
May I
invite you to visit our new blog: IIMS-Asean http://iims-asean.blogspot.com/
News
and activities of the International Institute of Medicine and Science Asean
Chapter of IIMS, Inc. California, USA - Health care, Life Science, Education,
Research, Philanthropy. Asean is the economic organisation of ten countries
located in South East Asia: Brunei Darussalam, Cambodia, Indonesia, Lao PDR,
Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. IIMS is a
non-profit organization.
No comments:
Post a Comment