Prime Minister Pham Minh Chinh has requested to adhere to the set goals of macro-economic stability, promoting growth, controlling inflation, and ensuring major balances; in which, continuing to prioritise growth, striving for higher growth in 2024 and 2025 to compensate for the previous three years of the term.
The above information was unveiled by Minister-Chairman of the Government Office Tran Van Son at the Government’s regular press conference in Hanoi on September 7.
Positive economic growth
Providing a briefing on the economic situation, Son reported on the strong momentum for recovery in August and the first eight months of 2024, achieving positive results in all fields, fulfilling the set goals, and helping to strengthen the foundation to achieve and exceed 15/15 targets set for 2024.
Accordingly, the economy continued to grow in all three sectors. The agricultural sector continued to grow steadily. The industrial sector recovered well, and increased 2% in August compared to July, and rose 9.5% over the same period last year. Overall, the industrial sector increased by 8.6% in the first eight months of 2024.
"The service sector continues to grow quite well. Total retail sales of goods and consumer service revenue increased by 7.9% in August and rose by 8.5% in the first eight months. The number of international visitors in the January-August period reached nearly 11.4 million. This is an increase of 45.8% compared to the same period in 2023 and an increase of 1% compared to the same period in 2019 before the COVID-19 epidemic broke out," the minister said.
Son stressed that the macro-economy continued to be stable, inflation was under control, and major balances were guaranteed. The eight-month average consumer price index (CPI) increased by 4.04%, while core inflation rose by 2.71%. Monetary and fiscal policies remained flexible according to market developments, while exchange rates and basic interest rates were stable. Food security was guaranteed (rice exports reached 6.16 million tonnes with a turnover of about 3.85 billion USD, up 6% and 21.7% respectively over the same period last year). The labour market recovered well, ensuring the balance of labour supply and demand.
According to the official, exports continued to increase; specifically, exports increased by 3.7% compared to July and 14.5% over the same period. Overall, the country’s eight-month exports increased by 15.8%, while imports went up by 17.7%, resulting a trade surplus of 19.07 billion USD. The trade surplus was large, contributing to ensuring the balance of payments, Son said.
In particular, State budget revenue increased sharply, and the State's financial and budget situation continued to improve. Total State budget revenue in the eight months was estimated to reach 78.5% of the yearly estimate, up 17.8% over the same period (while exempting and reducing 90 trillion VND in taxes, fees, and charges).
In addition, development investment continued to achieve positive results, creating motivation to promote growth. Disbursement of public investment capital in the January-August period reached 40.49% of the plan. FDI attraction reached 20.52 billion USD, up 7%, while disbursed FDI capital hit 14.15 billion USD, an increase of 8%, the highest in the past five years.
Avoiding "jerky" management
Besides affirming that the basic achieved results, Son also mentioned a number of limitations. The disbursement of public investment capital was still slow, and a backlog projects need to be resolved more effectively. The economy's ability to absorb capital is not high, and mobilising and using resources is not really effective.
Therefore, to prioritise growth and achieve the set goals, Prime Minister Pham Minh Chinh requested ministries, branches and localities to be flexible with monetary policy as dictated by market conditions to continue growth and expansion.
Stable exchange rates, reduced lending interest rates, and increased access to credit capital, especially in priority areas, will help Vietnam strive for the yearly credit growth of about 15%. He urged increasing revenue, saving state budget expenditures, ensuring complete and timely collection, and expanding the revenue base. He also encouraged deploying digital transformation and applying electronic invoices in revenue management, and saving regular expenditures and increasing development investment.
In particular, the government leader requested good control of inflation according to the set goals, and promoting production and ensuring food supply. He also suggested proactively managing the supply of petrol and energy, having a roadmap to adjust prices appropriately for services managed by the State, and avoiding price hikes and knee-jerk responses to underpin stability.
The PM noted that ministries, branches and localities should focus on renewing traditional growth drivers. For investment, focus should be placed on creating breakthroughs in disbursement of public investment capital, improving the investment and business environment, and effectively mobilising all social resources.
Regarding exports, PM Chinh requested to maintain and effectively exploit large, traditional markets, expansion to new, potential markets, and improve the quality and competitiveness of export products.
