Recently, National Economics University (NEU) brought together leading scholars to undertake research projects, organize conferences and distill the findings into recommendations submitted to the Communist Party of Vietnam, Government, National Assembly, and central ministries and agencies, with the aim of contributing to the economy’s overall development and fulfilling its role as a trusted adviser to the Communist Party of Vietnam and Government on the formulation of policies for the country’s socioeconomic development.

As a national key university, NEU has established itself as a major center for scientific research and consulting in economics and business administration, with a leading reputation in Vietnam. The University’s academic activities have made significant contributions to the formulation of the country’s socioeconomic development strategies and policies, as well as to strengthening enterprises’ capabilities. NEU has set the goal of becoming a reputable, multidisciplinary, research-oriented university meeting regional and international standards of quality.

In the first quarter of 2024, NEU distilled its findings into 19 recommendations concerning five key issues facing the national economy in recent times.

Topic 1: The Global Minimum Tax Rate and Its Impact on FDI

On the morning of November 29, 2023, the National Assembly voted to adopt a Resolution on the application of supplementary corporate income tax under the global minimum tax rules against base erosion. The global minimum tax is a tax initiated by the Organisation for Economic Co-operation and Development (OECD). Currently, 142 out of 142 countries, including Vietnam, have agreed to it. The application of the global minimum tax will directly affect the interests of foreign direct investment (FDI) enterprises whose effective tax rates are below 15% during periods of tax exemption and reduction incentives. Vietnam’s previous tax incentives for foreign enterprises will no longer be effective, potentially affecting the overall investment environment.

NEU proposes the following two recommendations:

Recommendation 1.1: Conduct a Comprehensive, In-Depth Assessment of the Implementation of the Global Minimum Tax and Its Impact on FDI

Recommendation 1.2: Establish an Investment Support Fund Using the Additional Revenue Generated by Implementing the Global Minimum Tax

Topic 2: Restoring and Stabilizing the Corporate Bond Market Toward Sustainable Economic Development

To restore and develop the corporate bond market and provide momentum for stable and sustainable economic development in the coming period, NEU proposes the following recommendations:

Recommendation 2.1: Implement Coordinated Policy Mechanisms to Stabilize the Macroeconomy and Flexibly Coordinate Fiscal and Monetary Policies

Recommendation 2.2: Review and Assess Certain Existing Regulations to Remove Legal Barriers and Difficulties Facing the Corporate Bond Market

Recommendation 2.3: Strengthen Stakeholder Accountability to Increase Transparency in the Corporate Bond Market

Recommendation 2.4: Improve the Operation of the Corporate Bond Market Trading System to Minimize Legal Risks

Recommendation 2.5: Develop and Implement Policies and Plans to Support Enterprises Issuing Corporate Bonds

Topic 3: Promoting a Climate-Resilient Economic Growth Model

To implement its roadmap for climate-resilient development and net-zero emissions as pledged at the Climate Change Summit (COP 26), Vietnam is expected to need additional investment of approximately 6.8% of GDP, equivalent to USD 368 billion, between now and 2040 (World Bank 2022). With appropriate policies and strategies, Vietnam can leverage decarbonization activities to achieve its net-zero development goal without reducing GDP growth rates over the medium and long term. NEU proposes the following four groups of recommendations:

Recommendation 3.1: Shift Thinking and Approaches Toward a Greener, More Sustainable Growth Model

Recommendation 3.2: Integrate Climate-Resilient Growth Programs and Projects into National, Local, and Sectoral Development Master Plans and Plans

Recommendation 3.3: Increase the Use of Economic Instruments to Mobilize Financial Resources for Climate-Resilient Growth

Recommendation 3.4: Unlock Green Credit Flows for Climate-Resilient Growth

Topic 4: Ensuring a Safe and Sound Financial and Banking System to Support Growth

To ensure a safe and sound financial and banking system that supports growth, NEU proposes the following recommendations:

Recommendation 4.1: Manage Monetary Policy Flexibly and on a Scientific Basis to Address Difficulties Facing the Economy

Recommendation 4.2: Accelerate the Restructuring and Development of the Banking System Toward Digitalization, Safety, and Soundness

Recommendation 4.3: Strengthen Supervision of Non-Bank Financial Intermediaries to Ensure the Safety of the Financial System

Recommendation 4.4: Strengthen Enforcement Against Violations, Improve the Legal Framework, and Enhance the Quality of Securities Offered to Develop a Sustainable Securities Market

Topic 5: Identifying Shortcomings and Recommending Policies for Developing Vietnam’s Real Estate Market

To address difficulties and promote the stable and sustainable development of the real estate market in the coming period, the recommendations focus on the following four key groups of solutions:

Recommendation 5.1: Improve Institutions and the Legal Framework to Develop a Sustainable and Sound Real Estate Market

Recommendation 5.2: Accelerate the Restructuring of Real Estate Products to Diversify Supply and Reduce Real Estate Selling Prices

Recommendation 5.3: Unlock Capital Flows to Diversify Long-Term Funding Sources for the Real Estate Market

Recommendation 5.4: Develop a Real Estate Market Information and Forecasting System and Increase Market Transparency

The specific recommendations above were distilled and drawn from NEU’s scientific research activities. It is hoped that these recommendations can contribute to the economy’s development in the new context.

Faculty members and scholars are invited to view NEU’s detailed recommendations for the first quarter of 2024 here

Article and photos: Department of Research Management & Department of Communications

Media Coverage:

Nhan Dan: Increasing Transparency in the Corporate Bond Market

Vietnam Financial Times: National Economics University Puts Forward Recommendations on Five Key Economic Issues

Vneconomy: Experts Recommend Establishing a Fund to Support Major FDI Investors When Implementing the Global Minimum Tax

Corporate Bond Market Gets Off to a Gloomy Start

Business Forum: Removing Legal Barriers for the Corporate Bond Market

Shifting Toward a Greener Growth Model

Communist Party of Vietnam Online Newspaper: Focusing on Five Socioeconomic Development Priorities Starting in the First Quarter

Customs: Recommendation to Supervise Non-Bank Financial Intermediary Companies and Organizations

Corporate Finance Magazine: National Economics University Proposes Establishing an Investment Support Fund Using Global Minimum Tax Revenue

Vietnam Law: Proposal to Establish a Support Fund to ‘Retain’ Foreign Investors

Mobilizing Financing for the Net-Zero Emissions Goal

This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn.