As we enter 2024, the global economy is expected to continue to experience some notable trends. The world economy is still in a period of profound transformation and turning point. The uncertainty and instability in 2024 will continue to increase with numerous elections taking place in many countries, which are forecasted to lead to significant economic policy adjustments…
In this context, Mr. Phan Duc Hieu, Member of the Standing Committee of the Economic Committee of the National Assembly, affirmed that in terms of economic and social development direction in 2024, the National Assembly and the Government have affirmed their determination to restore the economy by prioritizing promoting macroeconomic growth and stability:
“The government has put forward many solutions to achieve the economic growth target in 2024, which emphasizes 4 major groups of solutions, including: innovation, green growth, sustainable development; improving institutions, particularly in green energy development including energy security and energy transition; continuing to promote the development of processing and manufacturing industries; focusing on human resource training; attracting investment, particularly FDI”.
There are many optimistic signals for the Vietnamese economy since the beginning of the new year 2024. (Illustrative photo: KT)
It can be said that, faced with the common challenges of the world, Vietnam has had prominent highlights since the beginning of this year, especially in industrial production, where processing and manufacturing industry has grown by 19.3% compared to the same period in 2023. The industrial production index in January this year increased in 60 localities and decreased in 3 localities nationwide. There were 13.5 thousand newly established enterprises nationwide, up 2.2% compared to the previous month and up 24.8% compared to the same period last year.
According to the General Statistics Office, the total retail sales of goods and consumer service turnover in January 2024 is estimated at 524.1 trillion VND, up 1.6% compared to the previous month and up 8.1% compared to the same period in 2023. Notably, the capital expenditure from the state budget implemented in the first month this year is estimated at 31.1 trillion VND, up 12.5% compared to the same period last year.
Dr. Le Duy Binh, an economist, said: “There has been a remarkable improvement in private investment, which is a very important demand for the economy. Disbursement of public investment has also increased, which is also a bright spot, helping to increase investment and demand for the government. This is a bright spot that needs attention to see that there are factors for us to expect a better 2024”.
In 2023, one of the difficulties often mentioned by businesses is the issue of access to resources in terms of capital and finance. In 2024, many experts believe that the pressure on monetary policy will be reduced, making it easier for the banking industry.
In order to help the economy recover and grow, Ms. Bui Thuy Hang, Deputy Head of the Monetary Policy Department, State Bank of Vietnam, stated that the monetary policy direction for 2024 is to focus on expanding credit support for businesses to recover, seize new development opportunities this year.
“The State Bank of Vietnam also sets a 2024 growth target of 15% – This target is flexibly adjusted to fit market developments. The State Bank of Vietnam continues to implement measures for credit management, directing credit institutions to direct capital flow to the manufacturing industry; sectors that create momentum for the economy. Along with that, simplifying loan procedures, increasing access to capital for people and businesses” – Ms. Hang added.
Illustrative photo: TTXVN
With the current monetary policy focusing on reducing lending rates and removing inappropriate barriers in accessing credit capital, while enhancing supervision and risk management of the system. These will be necessary auxiliary resources to help people and businesses stabilize production and business, creating breakthroughs for the economy.
At the same time, extending the deadline for some supportive policies will also help businesses recover and develop.
Mr. Dau Anh Tuan, Deputy Secretary-General of the Vietnam Chamber of Commerce and Industry, the representative organization of the business community, commented: “Policies on tax reduction, fees are highly appreciated by businesses. Because this policy group quickly enters reality, usually not through implementation, implementation – takes a lot of time, may even be ineffective. Second, it brings direct benefits, in plain language, it is “fresh money, real crops” so businesses can easily access, fair, and transparent”.
Recently, international organizations have made many optimistic forecasts about Vietnam’s economy in 2024. Most of the forecasts believe that our country’s growth will reach over 6%. The good start with positive signals in the early days, the first month of the year has consolidated the confidence of international organizations in the bright prospects of Vietnam’s economy in the coming time.
