
2024 is identified as a year of acceleration and breakthrough, and is of special importance in achieving the successful implementation of the 2021-2025 socio-economic development plan. The economy is forecasted to face opportunities, advantages, as well as difficulties and challenges, which are even greater in number.
6 guiding focal points
Therefore, at the beginning of the year, the Government issued Resolution 01/2024 on the tasks and main solutions for implementing the 2024 socio-economic development plan and the state budget estimate for 2024.
With a target growth rate of 6% – 6.5% for this year, Resolution 01/2024 specifies 6 guiding focal points for directing and managing, as well as 12 groups of tasks and solutions to achieve the target. Specifically, the Government emphasizes the need for proactivity, flexibility, timely and effective coordination, and consistency among policies.
The first and most important group of tasks and solutions emphasized by the Government is to prioritize promoting economic growth, maintaining macroeconomic stability, controlling inflation, and ensuring major balances. Specifically, the Government encourages banks to reduce costs and procedures in order to continue lowering interest rates for loans, increasing the accessibility of credit for businesses and individuals. Alongside this, fiscal policies such as tax exemption, extension, and reduction, as well as reducing land rent fees will continue to be studied and implemented to provide more support for the people and businesses.
The Government also pays attention to promoting trade, diversifying import and export markets, and gradually improving the trade balance with markets where Vietnam has a trade surplus, in parallel with developing the domestic market.
With the target of disbursing more than 95% of the assigned public investment plan, the Government requires accelerating the progress right from the beginning of the year. It is determined not to invest in scattered and wasteful projects, eliminate unnecessary projects, and allocate capital from projects that cannot disburse to projects with disbursement potential.
To support the group of solutions for stability and economic development, the Government has provided another important group of solutions, which is to review and improve institutions, laws, mechanisms, and policies associated with enhancing the effectiveness of law enforcement; strengthening administrative procedure simplification and business regulations.
It is noteworthy that there will be new solutions issued this year to remove obstacles in the corporate bond market, land use rights, real estate, and energy. Regarding the real estate market, the Government will study mechanisms and policies to attract foreign investment and limit the supply-demand imbalance; aiming to complete about 130,000 houses under the project “Investing in the construction of at least 1 million social housing units for low-income people and workers in industrial zones in the period 2021 – 2030.”
Another solution is to promote the construction and development of a synchronized, strategic, and modern infrastructure system, especially the highway system, airports, seaports, urban and interregional infrastructure, digital infrastructure, social infrastructure, healthcare, and education. Specifically, the focus will be on accelerating the implementation progress of important national transportation projects such as the North-South expressway, Belt Road 3 in Ho Chi Minh City, Belt Road 4 in Hanoi Capital Region, Long Thanh International Airport, Terminal 3 – Tan Son Nhat International Airport, etc.
To promote the 3 important factors for growth: investment, export, and consumption, it is necessary to implement multiple groups of tasks and solutions. Photo: HOÀNG TRIỀU
Boosting support for businesses
A notable aspect of the Government’s guiding focal points is to create a favorable business environment, remove barriers for businesses to overcome difficulties, break through, and contribute to the overall target. The Government also identifies the three important factors for growth: investment, export, and consumption.
According to Minister of Planning and Investment Nguyen Chi Dung, Resolution 01/2024 was drafted by the ministry and was issued by the Government shortly after to proactively implement. Therefore, ministries, sectors, and localities need to be determined, focus, and quickly implement the groups of tasks and solutions in the resolution with the spirit of “discipline, responsibility, proactivity, timeliness, acceleration, creativity, effectiveness, and sustainability.”
Resolution 01/2024 has clearly assigned tasks to ministers, heads of ministerial-level agencies, agencies under the Government, and Chairpersons of provincial and municipal People’s Committees. Accordingly, before January 20, agencies need to develop and issue action programs, plans, and specific documents to implement this resolution. “The Ministry of Planning and Investment will chair, coordinate with the Government Office and relevant agencies to monitor and inspect the implementation of Resolution 01/2024,” said Minister Nguyen Chi Dung.
The content of Resolution 01/2024 has received high praise for its focus on removing difficulties for businesses, creating favorable conditions for production and business activities. Economic expert Le Dang Doanh believes that if effectively implemented, this resolution would be a motivation and an important “key” to promote economic growth.
To effectively implement Resolution 01/2024, Doanh suggested that the Ministry of Planning and Investment coordinate with the Government Office and relevant agencies to urge, monitor, and inspect the implementation of the resolution. It is necessary to closely follow the groups of tasks and solutions assigned to each ministry, sector in order to have an evaluation and reports to the Government.
“Implementing policies is always a weak link that needs to be overcome in order to achieve the economic – social growth targets. In addition, continue to improve the mechanisms and policies to create a legal corridor for officials and civil servants to perform their tasks, overcome the current situation of avoidance and shifting responsibility,” noted Doanh.
According to economist Nguyen Quoc Viet, Deputy Head of the Economic and Policy Research Institute (VERP), supporting solutions for businesses to overcome difficulties are very important at this time. Among those, the most important solution is to maintain macroeconomic stability, control inflation, and expand fiscal policies, effectively combined with monetary policies.
“Fiscal policies need to play the dominant role. I expect that the government will continue to consider and implement tax exemptions, reductions, and extensions in 2024 to further support businesses,” said Viet.
To achieve the economic – social targets in 2024, it is necessary to focus on the three factors: training, exports, and infrastructure. Graphics: ANH THANH
Driven by economic models
Minister of Planning and Investment Nguyen Chi Dung believes that to contribute to economic growth, it is necessary to promote the development of new economic models, e-commerce activities, and border trade. Strong recovery and development of the industrial sectors, especially processing, manufacturing, and semiconductor chip production; promoting development and integration into carbon credit markets…
“To achieve the targets of the 2024 economic – social development plan, we need to focus on 3 growth factors; renew old growth drivers and effectively exploit new growth drivers,” evaluated Minister Nguyen Chi Dung.
Proactivity of the banking industry from the beginning of the year
Regarding the banking sector, the State Bank announced at the beginning of the year, assigning a credit growth target of about 15% for credit institutions for the whole year in order for organizations to proactively implement and meet capital demands, contributing to economic growth.
However, according to the State Bank, credit growth in early 2024 was relatively low compared to the same period in recent years. Therefore, the State Bank has issued a document requesting credit institutions and foreign bank branches to proactively accelerate credit growth from the early months, promptly meet credit capital demands, direct credit to the areas of production – business, priority fields, and growth drivers, strictly control credit for sectors with potential risks.
The State Bank also requires banks to review, simplify, and optimize the application of digital conversion to credit granting processes and procedures; reduce costs to lower lending interest rates; diversify products and services suitable for each customer segment and market; dialogue and exchange with customers to timely resolve difficulties and obstacles…
Resolution abroad Branch: HO THERE
LATEST IN A LONG LINE THERE, Minister of Commerce:
Quickly issue an action program
The Ministry of Commerce has issued an action program to implement Resolution 01/2024 of the Government on the tasks and main solutions for implementing the 2024 socio-economic development plan and the state budget estimate for 2024. This action program also aims to implement the Government’s tasks assigned to the Ministry of Commerce this year.
In order to promote import and export, one of the main drivers of the economy, the Ministry of Commerce will implement measures to promote international economic integration, seize opportunities from foreign relations with large countries to anticipate the shift of investment flows of key industries to third countries by multinational corporations. At the same time, make good use of the role of the Vietnam Commercial Affairs Office in foreign countries to diversify markets, supply chains, and boost exports. Actively consult, negotiate, sign, and upgrade free trade agreements with potential partners in the Middle East, Africa, and South America.
The Ministry of Commerce also focuses on modernizing trade promotion, closely combining traditional trade with modern trade, e-commerce, and digital economy to effectively exploit the domestic market’s potential.
TS PHAN DUC HIEU
TS PHAN DUC HIEU, Standing member of the Economic Committee of the National Assembly:
Closely follow the reality to implement Resolution 01/2024
In Resolution 01/2024, the government has prioritized focusing on promoting economic growth with 6 guiding focal points and 12 groups of tasks and solutions. Accordingly, the Government requires all levels, sectors, and localities to be decisive, actively adapt flexibly, and resolutely, effectively, actively, creatively, efficiently, sustainably innovate and take action.
The government emphasizes this year’s theme as “Discipline, Responsibility, Proactivity, Timeliness, Creativity, Effectiveness, Sustainability”. Among these 12 groups of solutions, some solutions are ready for the ministries, sectors, and localities to immediately implement with full dedication to economic growth and macroeconomic stability.
Resolution 01/2024 also sets very specific targets. Among them, we can mention the goal of focusing on training and improving the quality of labor force, striving to have 50,000 – 100,000 highly qualified human resources for the semiconductor chip manufacturing industry by 2025 and 2030. With such labor force preparation, we can enhance readiness when opportunities arise.
Based on Resolution 01/2024, ministries, sectors, and localities need to closely follow the reality to understand the difficulties of businesses, thereby adjusting the current solutions and supplementing new ones to have timely support.
TS NGUYEN TRI HIEU
TS NGUYEN TRI HIEU, economic expert:
Specific and practical solutions are needed
Last year, Vietnam’s economic growth rate was only 5.05% due to the pressure of weakened external demand and fast growth in the previous year. In 2024, the economy faces many challenges, disadvantages due to the influence of instability-related political conflicts and high-interest rates worldwide.
The situation is determined by unresolved land-bound conflicts – an area accounting for 12% of global trade with 17,000 ships passing through each year – causing global transportation companies to reroute around Cape Hope, resulting in extended travel times, delays, and increased shipping costs. This condition affects not only end-users and consumers, but also exporters, manufacturers, and the entire global supply chain – including Vietnam.
Another factor to consider is the implementation of the Global Minimum Tax (GMT) in Vietnam applicable to multinational companies from the beginning of 2024. An estimated 122 foreign companies will be affected, while tax revenue for state budget collection is forecasted to increase by VND 14,600 billion/year (nearly USD 620 million). The government needs to implement measures to compensate for investors such as reducing costs, and improving labor productivity to maintain Vietnam’s competitiveness.
Recently, Hanoi City People’s Committee organized a consultation workshop on the establishment of a venture capital fund and a controlled pilot mechanism in some science – technology sectors. According to me, this is a very new idea that can significantly support businesses in difficult periods.
The government should also pay more attention to supporting markets such as the stock market, real estate, gold, bank savings, etc. to develop sustainably, thereby actively contributing to the economy.
Nguyen Hong Dien
Nguyen Hong Dien, Minister of Industry and Trade:
Reaping the benefits of the supply chain shift
In 2023, Vietnam achieved a growth rate of 5.05% due to external demand weakness and a high growth base from the previous year. In 2024, the economy faces many challenges and disadvantages due to the influence of political and trade conflicts, as well as high-interest rates globally.
The Red Sea conflict – an area that accounts for 12% of global trade with 17,000 ships passing through annually – has disrupted global supply chains, causing extended travel times, delays, and increased shipping costs. This situation is not only affecting end-users and final users, but also exporters, manufacturers, and the entire global supply chain, including Vietnam.
Another factor to consider is the implementation of the Global Minimum Tax (GMT) in Vietnam from the beginning of 2024 for multinational corporations. An estimated 122 foreign companies will be affected, while tax revenue collected by the state budget is expected to increase by VND 14,600 billion (nearly USD 620 million) per year. The government needs to implement measures to compensate for investors, such as reducing costs, and increasing labor productivity, to maintain Vietnam’s competitiveness.
Recently, the Hanoi City People’s Committee held a consultation workshop on the establishment of a venture capital fund and a controlled pilot mechanism in some science – technology sectors. According to me, this is a very new idea that can significantly support businesses in difficult periods.
The government should also pay more attention to supporting markets such as the stock market, real estate, gold, bank savings, etc. to develop sustainably, thereby actively contributing to the economy.
Minh Chien – Thai Phuong – Thuy Duong
