However, according to a report on the socio-economic situation in April 2023 and the first 4 months of the year that has just been published by the General Statistics Office, the economy is still continuing to face many difficulties that require determination from both the political system and the business community in order to achieve the target for the whole of 2024.
Shrimp processing line for export at the Minh Phu Seafood Corporation factory in Ca Mau province. Photo: Vu Sinh/TTXVN
Continuing the recovery process but remains slow
The General Statistics Office said: In the context of the world experiencing many difficulties and challenges, the socio-economic situation in Vietnam in April continued to rebound, contributing to improving the overall results of the first 4 months of the year and creating momentum for the following months.
Specifically, the macroeconomy remained stable, inflation was controlled, the major balances were ensured, and the consumer price index (CPI) in April 2024 increased by 0.07% compared to the previous month. Compared to December 2023, the CPI in April increased by 1.19% and increased by 4.4% compared to the same period last year. On average for the first 4 months of the year, the CPI increased by 3.93% compared to the same period last year; core inflation increased by 2.81%.
Along with that, the money market was basically stable; lending rates decreased; the exchange rate was stable in line with market developments; ensuring the safety of the banking system. The total state budget revenue in April 2024 is estimated at 175.6 trillion VND; the total state budget revenue for the first four months of 2024 is estimated to reach 733.4 trillion VND, equivalent to 43.1% of the annual estimate and an increase of 10.1% compared to the same period last year.
Also in April, the total value of import and export of goods is estimated to reach 61.2 billion USD, a decrease of 5.2% compared to the previous month and an increase of 15% compared to the same period last year. In the first four months of the year, the total value of import and export of goods reached 238.88 billion USD, an increase of 15.2% compared to the same period last year; in which, exports increased by 15%; imports increased by 15.4%. Trade surplus of goods reached 8.4 billion USD.
Foreign direct investment (FDI) realized in Vietnam over the past 4 months is estimated to reach 6.28 billion USD, an increase of 7.4% compared to the same period last year. This is the highest FDI realized in the first 4 months of the year in the past 5 years.
Also in April 2024, the whole country had 15.3 thousand newly registered enterprises with a registered capital of 175.8 thousand billion VND. This figure decreased by 4.1% in the number of enterprises and increased by 13.7% in registered capital compared to the same period in 2023. But compared to March 2024, the number of new enterprises in April 2024 still increased by 8.4%.
Economic expert, former General Director of the General Statistics Office Nguyen Bich Lam commented: The economy in April and the first four months of 2024 continued the recovery process but is still slow. The index of industrial production (IPP) in April 2024 increased by only 0.8% compared to the previous month. Compared to the same period last year, the industrial sector recovered slowly, some major industries increased low or decreased.
Not only that, the agricultural sector, which has been a pillar of the economy for the past few years, is facing drought and saltwater intrusion, affecting food production; livestock production is declining. Although the weather is favorable, fishery exploitation has not increased significantly.
In addition, merchandise exports in April decreased compared to the previous month, and the export turnover in the first 4 months of 2024 still increased but the growth rate was lower than in the first quarter of 2024. The number of enterprises withdrawing from the market is still higher than the number of enterprises entering the market, reflecting the fact that the business sector is still facing great difficulties.
The world economy is facing instability, with the US economy predicted to slow down in the first quarter of 2024, much lower than previously forecast and 1.8 percentage points lower than the GDP growth rate in the fourth quarter of 2023. US inflation in March 2024 accelerated again, the US dollar increased in value, consumer spending fell, the US Federal Reserve (Fed) has just decided to keep interest rates unchanged for the 6th consecutive time, indicating that the Fed will delay lowering interest rates. Along with that, the exchange rate between VND and USD has increased, putting pressure on imported inflation and restraining economic growth in our country….
Coordinating harmoniously
Production line of electronic devices, lighting equipment for cars and motorbikes at the Vietnam Stanley Electric Co., Ltd. (invested by Japan) in Hanoi. Photo: Danh Lam/TTXVN
In the context of domestic and world economies still experiencing unforeseen difficulties and uncertainties, extreme weather phenomena are taking place, the agricultural, forestry and fishery sectors are facing many difficulties causing slow growth. In order for the Vietnamese economy to overcome difficulties, recover faster and more sustainably, economic experts propose that the Government and localities focus on stimulating domestic consumer demand, implementing promotion programs; preferential credit programs for consumption; improving service quality, reducing or stabilizing transportation fees, especially airfares, to encourage domestic tourism and attract international tourists.
To remove difficulties and unlock capital sources to create liquidity for businesses, it is necessary to continue to implement fiscal and monetary policies synchronously and consistently. At the same time, urgently refunding taxes to businesses; having credit policies that are suitable for the characteristics of business production and the needs of each industry, each field; implementing a package of preferential credit for key industries, fields and enterprises of the economy.
In addition, functional agencies implement policies of exemption, reduction, extension of tax payments, land rents; waiving or reducing all kinds of fees and charges to reduce costs and enhance the competitiveness of businesses. In particular, ensuring adequate supply of electricity and gasoline for business production; having sanctions and regulations requiring the electricity sector to compensate businesses for production losses caused by power outages.
The Government is also urgently completing legal documents on import and export; implementing fiscal and monetary policies to support businesses in addressing the exchange rate issue between VND and USD, increasing supply, reducing costs, and enhancing the competitiveness of Vietnamese goods.
On the other hand, promoting market information and trade promotion; diversifying import and export markets, especially for import markets to minimize the impact of shocks from these markets. In addition, supporting businesses to effectively seize opportunities and commitments from trade agreements to boost exports; strengthening the dissemination of rules of origin and granting Certificates of Origin; focusing on building the image of reputable Vietnamese export enterprises.
Along with the Government’s solutions, export businesses grasp market signals, maintain traditional markets, actively seek orders, open up new markets.
The Deputy Minister of Planning and Investment, Tran Quoc Phuong, said that ministries and localities also need to continue to accelerate the effective disbursement of public investment capital. In particular, completing the detailed allocation of the 2024 state budget investment plan in accordance with regulations, ensuring focus, key points, not spreading out, and in line with implementation capabilities.
“Focus on investing in large projects, eliminate dispersed investment, minimize project implementation time, and quickly put projects into use, improving the efficiency of public investment capital,” Deputy Minister Tran Quoc Phuong emphasized.
To create a breakthrough in attracting and disbursing FDI capital in 2024 of the economy, the Government has solutions to enhance the competitiveness of the investment and business environment, develop infrastructure, focus on improving the capacity of transport infrastructure, industrial, technological infrastructure, information and logistics infrastructure.
At the same time, completing a clear, public, transparent legal environment and
