Resolution No. 43/2022/QH15, a landmark fiscal and monetary policy package enacted by the 15th National Assembly during an extraordinary session in early 2022, has yielded positive outcomes in supporting Vietnam's socio-economic recovery and development.
The resolution introduced a series of unprecedented measures, including tax waivers and reductions totaling 60.53 trillion VND (2.52 billion USD), or 94.6% of the estimate, contributing to removing difficulties for citizens and businesses. Notably, the legislature authorised a 2-percentage-point reduction in VAT and land and water surface rent for both 2023 and 2024.
Despite falling short of the projected target, Vietnam's GDP growth rate of 5.05% in 2023 remained relatively high compared to regional and global trends. The steady and consistent recovery across all three sectors of the economy was a testament to the significant efforts and unwavering determination of the Government, the Prime Minister, and relevant agencies in the face of unprecedented economic challenges.
Public debt management has emerged as a bright spot in Vietnam's fiscal and macro-economic policies. Credited by international organisations and rating agencies as sustainable, public debt levels have provided the Government with the flexibility to enforce reasonable, expansionary fiscal policies when necessary, particularly during the COVID-19 pandemic. As of the late 2023, the public debt ratio stood at approximately 37% of the GDP, below the NA’s 55% warning threshold and 37.4% in late 2022.
Several key social and economic indicators showcase the effectiveness of the policies. The urban unemployment rate remained low, hovering around 2.73% and 2.79% in 2023 and 2022, respectively, successfully meeting the NA's target. Inflation control measures also proved effective, with the consumer price index increasing moderately by 3.15% in 2022 and 3.25% in 2023, significantly lower than the NA's targeted range of 4-4.5%.
State budget revenue exceeded expectations, reaching 128.6% and 108.12% of the estimates in 2022 and 2023, respectively. This resource has been strategically allocated to support social welfare initiatives. Notably, over 3.67 trillion VND from the central budget was disbursed to assist 59 out of 60 localities in covering housing rental expenses for nearly 5.2 million workers. As of the late 2023, the Vietnam Bank for Social Policies disbursed a total of 38.4 trillion VND in preferential loans to over 615,000 customers, including low-income individuals and social policy beneficiaries.
