On May 23, the National Assembly continued its 9th session with group discussions on the implementation of socio-economic development plans and the state budget.
Removing obstacles must be the ‘focus of focuses’
Speaking at the event, Deputy Ha Sy Dong from Quang Tri Province shared his concern about the improvements in Vietnam’s business environment in recent times.
The deputy from Quang Tri Province assessed that there are still numerous complaints and obstacles faced by businesses regarding the business environment, delving into more complex issues. This is despite the existence of Resolution 57 on science and technology, Resolution 66 on the legal system, and especially Resolution 68 on the private economy.
“If we don’t accept a revolution in the business environment, I’m afraid that minor improvements will not yield significant results,” Mr. Dong expressed. He further asserted that without a breakthrough in the business environment, the long-term goal of maintaining double-digit growth in the next two decades would be unattainable.
Moreover, according to Mr. Dong, if we persist in aiming for high growth in 2026 and 2027 while relying on fiscal and monetary measures, there would be significant macroeconomic risks.
NA Deputy Ha Sy Dong (Quang Tri Province). Photo: PHAM THANG |
Mr. Ha Sy Dong cited recent reports by the Vietnam Chamber of Commerce and Industry (VCCI) indicating that investing in projects involving land use in Vietnam is akin to navigating a forest of procedures and mountains of paperwork. These include obtaining approvals for construction planning, land use planning, investment policies, design appraisal, environmental impact assessment, fire protection, land use fees, building permits, and project acceptance.
VCCI’s surveys also revealed that businesses are facing increasing challenges in accessing land and constructing factories. While 55% of enterprises encountered ease in accessing business premises in 2021, this figure dropped to 33% in 2024.
The most significant hurdle is the prolonged processing time, especially for land price determination. Almost all procedures take longer than stipulated or require multiple revisions.
“With such a forest of procedures and mountains of paperwork, we cannot mobilize sufficient private investment to serve our growth targets,” Mr. Ha Sy Dong emphasized.
Additionally, according to calculations, the investment rate needs to be above 40% to maintain high growth. “How can we achieve such a high investment rate if investment procedures are delayed and prolonged?” Mr. Dong added.
The deputy also argued that in the real estate sector, overly lengthy procedures have caused real estate projects to stall, slowing down the supply of housing and contributing to the sharp rise in housing prices in recent times.
“I believe that removing obstacles for investment projects must be the focus of focuses if we aim for continuous high growth,” Mr. Dong stated, suggesting that the Government must be very determined in this regard.
“There should be a task force comprising economic and legal experts to propose solutions to streamline, consolidate, or interconnect investment project procedures,” Mr. Dong added.
Gold price surge will lead to significant inflationary pressure
Additionally, Deputy Ha Sy Dong drew attention to the gold market, citing the Government’s report showing that gold prices have surged by nearly 30% since the beginning of 2025, peaking at $3,500 per ounce on April 23.
JPMorgan Bank predicts that the upward trend in gold prices will continue, possibly reaching $4,000 per ounce, surpassing earlier forecasts.
Once considered a “safe haven,” Mr. Ha Sy Dong now views gold as a volatile asset. “The media has reported instances of people losing hundreds of millions in just a few days due to the unpredictable nature of this asset. The surge in gold prices will have far-reaching consequences, impacting not only the financial sector but also the lives of ordinary citizens,” Mr. Dong stated.
According to him, while those holding gold will benefit from the price increase, the negative impacts cannot be overlooked.
Citing data from the General Statistics Office, Mr. Dong mentioned that in 2024, gold prices rose by nearly 14% while the consumer price index (CPI) increased by 3.2%. This illustrates the correlation between gold prices and consumer goods prices.
“The surge in gold prices will lead to significant inflationary pressure,” Mr. Ha Sy Dong emphasized. He further explained that consumer goods would become more expensive as the higher gold value affects production and distribution costs, reducing people’s purchasing power, especially for low-income groups, and increasing living expenses for the majority of the population.
“The State Bank warns that if gold prices continue to rise sharply, we may face runaway inflation, causing essential goods such as food, fuel, and construction materials to soar in price, negatively affecting the economy’s health,” the deputy from Quang Tri Province said. He stressed the importance of not only viewing gold as a traditional investment asset but also recognizing its role as a barometer of global economic health, directly impacting the national economy.
“It’s crucial for Vietnam to proactively develop a long-term strategy to stabilize the economy, avoid being caught up in gold speculation waves, and ensure the country’s sustainable development,” Mr. Dong suggested. He further proposed that the Government and the State Bank establish clear gold management mechanisms to minimize volatility and promote investment in production rather than volatile assets.
REPORTERS
– 11:41 23/05/2025
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