Economic Indicators Rise in Q1 2024
According to the Minister and Head of the Government Office, Tran Van Son, several key economic indicators have improved in the first four months of 2024 compared to the same period in 2023.
Economy Maintains Growth Momentum
Specifically, the economy continues to show positive growth across all three sectors: agriculture, industry, and services. The Purchasing Managers’ Index (PMI) for April reached 50.3, indicating a significant increase in new orders.
The macroeconomic environment remains stable, and inflation is under control. The average Consumer Price Index (CPI) increased by 3.93% in the first four months. Lending and deposit interest rates have continued to decline, while exchange rates are being managed proactively, flexibly, and in a timely manner.
“Importantly, major economic balances are being maintained, including fiscal balance, trade surplus, food security, energy security, and labor market equilibrium,” emphasized Minister Son.
Specifically, total state budget revenue for the four-month period is estimated at VND 733.4 trillion, equivalent to 43.1% of the annual estimate and an increase of 10.1% compared to the same period last year. Public debt, government debt, external debt, and the state budget deficit are well controlled and significantly below the prescribed limits, providing fiscal policy space.
Exports continue to perform strongly, leading to a trade surplus and contributing to balance of payment stability and exchange rate stabilization.
Public investment disbursement reached 17.46% of the plan in the first four months, higher than the same period last year (15.65%). Foreign direct investment (FDI) attracted amounted to USD 9.27 billion, a 4.5% increase year-on-year, with realized FDI capital reaching USD 6.28 billion, a 7.4% increase and the highest level in recent years.
Business development has continued to show positive trends, with 51,600 new businesses registered in the first four months (a 3.4% increase in the number of enterprises and a 9.3% increase in registered capital compared to the same period last year). Additionally, over 29,700 businesses have resumed operations, representing a 2.4% increase.
Continued Focus on Macroeconomic Management
However, Minister Son noted that members of the government acknowledge that the economy still faces challenges and limitations that need to be addressed.
Based on an analysis of the causes, lessons learned, and the international and regional situation, Prime Minister Pham Minh Chinh has called for a focus on macroeconomic management, including proactive, flexible, and effective monetary policy management; ensuring harmonization between exchange rates and interest rates; strong revenue growth and fiscal discipline; timely submission of proposals to relevant authorities on tax exemptions, reductions, extensions, and fee waivers to support businesses; and the development of healthy securities, bond, and real estate markets, as well as enhanced price management.
Traditional growth drivers will continue to be revitalized, and new ones fostered.
Public investment and three national target programs will be accelerated, with the relevant ministries and localities prioritizing these as key political tasks. The effective implementation of the activities of the five working groups established by the Prime Minister will continue, aiming for a minimum 95% disbursement rate for public investment in 2024. Plans will be made to promptly allocate the remaining VND 33 trillion from the 2024 public investment plan.
Efforts will be focused on improving the legal framework, reforming administrative procedures, and promoting national digital transformation. The necessary decrees and circulars implementing laws on land, credit institutions, real estate business, and housing will be promptly issued for submission to the National Assembly for approval to take effect from July 2024.
In addition, there will be a strong focus on developing key sectors and industries, including modernizing industrial production, promoting agricultural production in value chains, and developing potential and advantageous service and tourism industries.
