Discipline, integrity and economic recovery

Money is flowing into real estate, largely not because it has added value, but because it will appreciate. Money flowing into stocks is largely the same: not because businesses are doing well, but because stock prices will appreciate.

Investing in real estate and stocks as mentioned above seems less like investing, and more like speculation or gambling. Speculation and gambling do not create any value or material wealth, but they can create real estate and stock bubbles. One fine day, these bubbles can burst, causing unpredictable consequences.

For the market to operate smoothly and resources to be mobilized to the maximum for economic and social development, discipline and the law must be ensured, and all distortions to the healthy development of the market must be eliminated.

However, the problem is that attracting investment for real estate and securities is still very necessary. The stagnant real estate market will seriously affect economic recovery. Because dozens, if not hundreds of other related industries will be affected; millions of direct or indirect jobs will also be affected. The same can be said about the stock market. For the market to operate smoothly, resources to be mobilized to the maximum for economic and social development, discipline and law must be ensured, all distortions to the healthy development of the market must be eliminated.

Strengthening the fight against corruption and controlling market manipulation is therefore an equally important task for economic recovery. This is also the vision of Prime Minister Pham Minh Chinh. In a short time, the Prime Minister has issued a series of directives to strengthen discipline, promote anti-corruption and prevent acts that disrupt the market. These include the directive on handling violations in the production and trading of Covid-19 test kits at Viet A Company, the Official Dispatch directing the review and consideration of handling violations of the law in land use rights auctions, and the directive on strengthening inspections to prevent corruption in government agencies and local authorities.

To restore and develop the socio-economy, the National Assembly has approved a loose fiscal policy package, a loose monetary policy package, and a loose institutional policy package. However, when everything is loose, there is one thing that needs to be tightened - that is discipline. A "tightened discipline package" is indeed the fourth policy package deployed by the Prime Minister.

Experience from the past shows that any relaxation is very easy to abuse. The head of the Government has realized this and has given many instructions through the announcement of conclusions, instructions... and in meetings and working sessions, he has always strictly reminded about resolutely opposing group interests, resolutely handling any negative corruption in policy implementation and policy making.

Money from fiscal and monetary policies can run around causing inflation, without being poured into production and business activities. The interest rate compensation policy does not make credit less expensive, but only makes some people rich thanks to sharing the interest rate compensation money. Therefore, without a "tightening discipline package", the three above-mentioned loosening policy packages will be very easy to exploit, and in that case, the goal of economic and social recovery and development may not be achieved.

In addition to the package, "tightening discipline policy", another policy package is probably also of interest to the Prime Minister. That is the "policy package" related to enhancing integrity. When institutional relaxation allows the head to appoint contractors, abusing this power for personal gain is not only easy, but also "legal". Preventing such profiteering behavior here, integrity is perhaps the most important. If integrity reigns in our governance, any relaxation will only create opportunities, not loopholes. The costs of inspection and examination activities will also be reduced, thereby reducing the burden on the people and the economy, and achieving prosperity will be easier.

Finally, loose fiscal, monetary and institutional policy packages are essential for economic and social recovery and development. But equally necessary are "policy packages" on discipline and integrity. If loose fiscal, monetary and institutional policy packages are necessary conditions, then "policy packages" on discipline and integrity are sufficient conditions.