PM Pham Minh Chinh chairs the Government meeting in October 2021. Photo: VGP/Nhat Bac

The meeting took place in the context of our country after the peak of COVID-19 pandemic prevention and control during the 4th outbreak, and so far the epidemic is basically under control. Socio-economic changes in October saw positive changes; economy recovered and prospered thanks to the strategic shift from centralization to decentralization to the grassroots in the implementation of health measures according to the motto of safe, flexible adaptation, and effective control of the COVID-19 epidemic.

Effectively implementing Resolution 128/NQ-CP

After more than 3 weeks of implementing Resolution 128/NQ-CP dated October 11, 2021 of the Government promulgating the temporary regulation "safe and flexible adaptation, effectively controlling the Covid-19 epidemic"; socio-economic situation in October saw many positive changes; strengthening the confidence, spirit of excitement and optimism of people, businesses and investors about the trend and resilience of the economy. Production and business activities of enterprises, movement of people and workers are gradually returning to the new normal state.

Notably, according to a report of the Ministry of Planning and Investment, the business situation in October recovered, in which the number of businesses returned to operation increased by 29.8% compared to the previous month. From mid-October 2021 up to now, more than 75% of workers have returned to big cities and industrial zones, helping to reduce the pressure of labor shortage for businesses and business establishments. Export turnover in October increased by 6.4% over the previous month; Notably, October had trade surplus again after many months of trade deficit.

Governor of the State Bank of Vietnam Nguyen Thi Hong delivered a speech. Photo: Van Diep/VNA

According to Hong, the indexes in October were positive; consumer demand increased again; trade surplus returned in October while the previous 9 months only saw trade deficit. Increased foreign investment shows foreign investors' confidence in Vietnam's economic recovery. The State Bank continues to ensure the supply of capital for the economy; in the first 10 months of the year credit increased; interest rates were low. The banking system continues to support debt extension and postponement for businesses. Inflation is controlled, ensuring that the National Assembly's target is below 4%.

Besides, the Governor of the State Bank emphasized a number of risks, including inflationary pressure. Currently, inflation is at a relatively low level, ensuring that the National Assembly's target is below 4%; however, inflationary pressure gradually increased, in the context of rising world commodity prices.

In addition, there is the risk of bad debt. According to Hong, currently bad debts are still below 2%, but potential bad debts due to the policy of delay and extension can cause bad debts to rise to 7-8%; If businesses still face difficulties due to the epidemic, bad debts may continue to increase. Domestic and foreign experts also recommend that the State Bank soon have a roadmap to keep the banking system safe.

At the meeting, Health Minister Nguyen Thanh Long said that compared to one month ago, before the implementation of Resolution 128/NQ-CP, the number of cases in the community decreased by 66.7%; the number of deaths decreased by 64.6%; the number of treatment cases decreased by 97.3%.

"This partly demonstrates the effectiveness of the vaccination campaign. Basically, localities are now well implementing Resolution 128/NQ-CP" - said Long.

Up to this point, out of a total of 195 million vaccine doses that have been contracted or agreed to supply, 124 million doses have returned to Vietnam. There are 109 million doses already allocated to localities and the rest is being distributed further. There are 88 million doses of the vaccine that have been administered; yesterday up to 2 million doses were administered.

In 19 provinces and cities in the South, there are 27.7 million people over 18 years old and the total number of vaccines allocated to this region is 51.7 million doses. In this area as a whole, 94.7% of the population over 18 years old has been vaccinated with the first dose; 51.5% of them received the second dose. The Ministry of Health continues to consider this as a key area to supply vaccines and ensure the implementation of the vaccination campaign. Regarding vaccination for children from 12-17 years old, so far, all localities have been safely injected without cases of severe reactions after injection.

Minister of Education and Training Nguyen Kim Son proposed policies to support workers in the field of non-public preschool education (of more than 19,200 institutions). According to the Minister, workers in this field are dealing with serious difficulties. If these non-public preschools and kindergartens have to be dissolved, there will be about 1.2 million children without a place to look after, or their parents are unable to go to work.

Promoting solidarity in realizing dual goals

Concluding the meeting, PM Pham Minh Chinh emphasized that an important event in October is that from October 11, "We have started to renew our thinking, methods and ways of organizing the COVID-19 prevention and control work into a new phase, from the policy of pursuing 'zero-COVID' to the policy of safe, flexible adaptation and effective control of the COVID-19 epidemic."

Specifically, the Government issued Resolution 128 and the Ministry of Health issued Decision 4800. Ministries, branches and localities have basically agreed and organized the drastic implementation of Resolution 128. Problems shall be encountered as the state changes, but the most important thing is that we detect, adjust and direct the implementation drastically and promptly.

PM stated, "There is no perfect choice but only optimal ones", and the optimality is proven through practice. However, it is mandatory not to be subjective or negligent. Chinh requested to focus on suppressing the epidemic in accordance with three pillars in epidemic prevention and control: the fastest, narrowest, and strictest isolation wherever an outbreak occurs; to have goals and roadmap for appropriate and effective solutions. The whole ward and commune have to take care if a population group is affected; the whole district has to take care if a ward or commune is affected; the whole province has to take care if one district suffers; and the whole region has to take care if one province suffers. The Ministry of Public Security and the Ministry of National Defense shall jointly support localities.

Recalling the situation in October, the PM stated that the Government focused on leading and comprehensively directing in all aspects of work, completing a large amount of work, including preparing for the fourth session of 13th Party Central Committee, the second session of the 15th National Assembly; focused on foreign affairs, both multilaterally and bilaterally.

To successfully complete these tasks, the PM said that there is solidarity, unity, drastic, initiative and creativity of the Government, ministries, branches and localities.

Referring specifically to the socio-economic situation, Chinh affirmed that there are numerous positive points. First of all, the epidemic was gradually controlled, drastic social security policies were implemented, and vaccine strategies were promoted (including imports, domestic production and vaccination).

Recalling his visit to COP26, working visit to the UK and official visit to the French Republic, Chinh said that during the work with leaders of agencies and organizations such as AstraZeneca, COVAX program, he received their commitments to continue to supply vaccines to Vietnam. “As soon as I arrived in Paris, France, I met the Executive Director of the COVAX Global Vaccine Access Program and she promised in November to provide us with more than 38 million doses,” PM said.

The PM assessed production and business activities, industrial production was recovering, import and export maintained a positive upward momentum; overcame the trade deficit and return to the export surplus; maintained the major balances of the economy; inflation has been well controlled. Regarding the trend of increasing FDI attraction, the PM required further efforts to improve the business investment environment. PM said that during visits to the UK and France, foreign investors all expressed confidence in Vietnam, especially in the Vietnamese people and political stability, saying that Vietnam's difficulties are only temporary.

Delegates attending the regular Government meeting in October. Photo: Van Diep/VNA

However, besides the outstanding results, Chinh asked ministries and branches not to be subjective, clearly recognize the risks and challenges. The epidemic remains complicated; fiscal risks, public debt, inflation pressure, etc.

Facing the challenge of the epidemic, PM requested to speed up the vaccination rate, ensure safety, effectiveness, science without any hesitation, especially focusing on key areas and regions such as the Southwest provinces. Currently, we have had more than 120 million doses of vaccine but only 88 million doses have been injected, therefore, PM asked to strive to inject all the remaining vaccines in November.

Another challenge is that retail activity has recovered but is not strong enough. Therefore, it is necessary to stimulate domestic consumption. Given that public investment is still inadequate, the PM emphasized that it is crucial to clearly analyze the causes and points of the policy institutions and implementation stages; focus on drastically implementing tasks and solutions to promote public investment.

Although the situation of enterprises has recovered, the number of enterprises returning to operation is more than the number of enterprises withdrawing from the market, but enterprises are still facing difficulties; economic restructuring remains slow.

Orienting tasks in the coming time, PM Chinh stated that he will continue to implement the following goals: To flexibly and safely adapt, and effectively control the COVID-19 epidemic in the spirit of risk management and promoting economic recovery, ensuring social security; ensure security and social order; maintain sovereignty and territory; proactively and actively integrate into the world, effectively exploiting signed free trade agreements (FTAs).

Continue to perfect the overall strategy for disease prevention and control, ensuring synchronization with the program of economic recovery and development. The PM noted that the health care capacity must be strengthened, especially in terms of human resources; take care of social security for those affected by the epidemic; support for businesses facing difficulties and low resilience; harmonious combination of fiscal policy and monetary policy to create leverage for economic recovery; expeditiously implement the approved support packages in association with enhanced inspection, control, anti-negative and anti-corruption; strengthen the responsibilities of ministries and branches in promoting economic restructuring.

To be able to focus on opening the market and the economy, the PM emphasized that the speed of vaccination needs to be accelerated. The Ministry of Health needs to organize a campaign for provinces where vaccination remains delayed.

The Ministry of Health shall coordinate with the Ministry of Education and Training and related ministries and branches to implement a vaccination program for students, along with 5K measures, to move towards opening schools with the spirit safe opening safe with effective epidemic control.

Chinh also noted that Government members shall carefully prepare, ensure the quality and progress of reports for the second session of the 15th National Assembly, and promptly provide information, explanations and answers to questions.

At the meeting, the Government heard and discussed the pilot project to separate compensation, support, resettlement and site clearance from investment projects; considered the report on the implementation of Resolution 17/NQ-CP in the third quarter of 2021; reported on the performance of assigned tasks and the issuance of detailed regulatory documents in October and 10 months of 2021.