Vietnam’s Economy Continues Positive Recovery in the First Month of 2024

The economic and social situation in January has achieved positive results, setting the momentum for growth and development throughout the year. The macroeconomy remains stable with controlled inflation, ensuring the maintenance of major balances.

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Economic Macro Month 01 Basically Stable

Speaking at the regular Government meeting in January 2024 held on the morning of February 1, 2024, Minister of Planning and Investment Nguyen Chi Dung said that overall, the macro economy in January was basically stable, and the economy continued to recover. International organizations highly evaluated the results of the country’s socio-economic development in the recent time and were optimistic about the growth prospects in 2024. The work of taking care of people’s lives and preparing for the Lunar New Year was concentrated and best ensured the conditions to serve the people for a happy and prosperous Tet.

Accordingly, the socio-economic situation in January achieved positive results, creating a momentum to implement growth and development targets for the whole year. The macro economy is stable, inflation is controlled, and major balances are ensured. The Consumer Price Index (CPI) in January increased by 3.37% compared to the same period, and the prices remained relatively stable, especially for goods serving consumer demand during the Tet holidays. The foreign exchange market and the basic exchange rate were stable, the interest rate decreased, fully meeting the payment needs and cash supply for the economy during Tet, and ensuring the safety of the banking system.

The total registered FDI capital in January increased sharply by 40.2% compared to the same period in 2023, reaching over USD 2.36 billion, of which newly registered capital increased by 66.9%; disbursed capital reached USD 1.48 billion, an increase of 9.6%. This is a sign that our country is taking advantage of the opportunities from the achievements in foreign affairs in 2023 and the first month of 2024.

Production and business activities continue to have positive changes. Basic agricultural production is stable. The industrial production index (IIP) in January increased by 18.3% compared to the same period, of which processing and manufacturing industries increased by 19.3%. The service sector maintained a good growth momentum; the total retail sales of goods and consumer service revenue in January increased by 8.1% compared to the same period last year; international visitors reached over 1.5 million, an increase of 10.3% compared to the previous month and an increase of 73.6% compared to the same period. In January, there were nearly 27.3 thousand enterprises joining and re-entering the market, an increase of 5.5% compared to the same period.

The work of ensuring social security and preparing the conditions to serve the people for a joyful, healthy, safe, and economical Lunar New Year according to the spirit of the Resolution No. 26-CT/TW of the Party Central Committee and the Directive No. 30/CT-TTg of the Prime Minister was actively implemented with many innovations.

Strongly Promoting and Renewing Growth Drivers

Regarding tasks and key solutions in the coming time, Minister Nguyen Chi Dung said that ministries, sectors, and localities should effectively and comprehensively implement the resolutions and conclusions of the Party Central Committee, the Politburo, the National Assembly, Resolution No. 01/NQ-CP, the guidance of the Government, and the Prime Minister; actively and flexibly respond and adapt to the situation; promote investment, consumption, and export drivers to quickly recover economic growth, strive to successfully implement the plan for 2024; maintain macroeconomic stability, control inflation, ensure major balances, and social security; tighten discipline; promote the implementation of the three strategic breakthroughs and solutions in the medium and long term…

The Ministry of Planning and Investment has advised and proposed key tasks and solutions for each ministry and agency; in which, attention is paid to some tasks and solutions such as continuing to strictly implement the Resolution No. 26-CT/TW of the Party Central Committee, the Directive No. 30/CT-TTg of the Prime Minister, preparing good conditions to serve the people for a joyful, healthy, safe, and economical Lunar New Year with the spirit of “not leaving anyone behind.” Monitor the market supply and demand, prices, proactively implement market stabilization programs and prices; strengthen inspection and strictly handle smuggling, trade fraud, speculation, hoarding, before, during, and after Tet, especially essential goods.

Continue to vigorously implement comprehensive and coordinated policies and solutions on taxes, fees, currency, trade, investment… to promote the quick recovery of production and business, industrial production, job creation, and livelihood for the people.

Strongly promote and renew growth drivers in investment, consumption, and export; effectively exploit new growth drivers from digital transformation, green conversion, circular economy. Strengthen the promotion and attraction of FDI projects with large scale, high technology, especially in industries such as processing, manufacturing, electronics, semiconductors, hydrogen…

Continue to implement resolute, comprehensive, and coordinated solutions on credit growth, increasing businesses’ and people’s access to capital. Remove difficulties and obstacles, promote the development of the real estate market according to Resolution No. 33/NQ-CP, strive to complete about 130 thousand social housing units in 2024.

Maximize the effective use of resources of state-owned corporations and general companies to invest in large projects in key fields of production and business. Continue to focus on handling loss-making and inefficient projects and enterprises.

Intensify disbursing public investment capital; promptly handle difficulties and obstacles to accelerate the progress of key projects, national important projects, strive to complete and put into operation at least 130 km of expressways in 2024.

In addition to that, review, concretize international agreements, agreements of high-ranking leaders; urgently study and submit to competent authorities new, comprehensive, and breakthrough mechanisms, policies, and solutions to maximize the new opportunities from the country’s international economic achievements and diplomacy.

Maintain stable macroeconomic stability, control inflation, ensure major balances of the economy. Monitor the situation closely, proactively respond to emerging situations. Continue to implement proactive, flexible, timely, and effective monetary policies; expand the budget open rationally, prioritize, and focus; coordinate, closely, harmoniously, and ensure the effectiveness of policies.

Strengthen financial and state budget discipline; implement effective measures to collect taxes properly, on time, expand the tax base, thoroughly save, and cut regular expenditures that are not really urgent and necessary to prioritize investment expenditures; focus on allocating the increased revenue from natural resource tax in 2023 for key projects, national important projects, ensuring the resources for salary and social reform…

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