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A Race to the Top: Targeting 6.5 – 7% GDP Growth in Q3

"Wrapping up the Government meeting and the online conference with localities, Prime Minister Pham Minh Chinh urged to strive for a GDP growth of 6.5 - 7% in the third quarter, aiming for the highest level in the plan for 2024 and maintaining the development momentum into 2025."

Administrator

9 July, 2024

Prime Minister concludes the June 2024 Regular Government Meeting and the Government’s Online Conference with Localities – Photo: VGP/Nhật Bắc

On July 6, Prime Minister Phạm Minh Chính chaired the June 2024 Regular Government Meeting and the Government’s Online Conference with Localities.

The meeting focused on assessing the socio-economic situation in June and the first six months of the year, as well as capital allocation and disbursement, the implementation of three national target programs, and key tasks and solutions for the last six months.

In his concluding remarks, Prime Minister Phạm Minh Chính agreed with the reports and opinions presented. He instructed the Ministry of Planning and Investment and the Government Office to incorporate the comments and finalize the meeting report and draft resolution for his signature and issuance.

Overall, the first six months of the year showed that the economy has recovered to pre-COVID-19 levels and continues on a positive trajectory: each month and quarter outperforming the previous one, with the six-month period achieving important results and surpassing the same period last year. This sets the stage for an even better performance in 2024.

Prime Minister points out existing limitations, challenges, and tasks for the future – Photo: VGP/Nhật Bắc

Looking ahead, the Prime Minister emphasized that the third and fourth quarters of the year are of particular importance in achieving the goals set for 2024.

The targets include achieving a GDP growth rate of 6.5-7% in the third quarter and determining an appropriate goal for the fourth quarter, while keeping inflation below 4.5%, maintaining macroeconomic stability, ensuring the economy’s major balances with a surplus, and safeguarding the country’s financial and monetary security. Additionally, the focus remains on national defense, security, and social order and safety, improving people’s lives, and enhancing international integration.

Regarding the guiding principles for direction and administration, the Prime Minister instructed to resolutely overcome limitations and shortcomings and to strive to successfully accomplish the set goals and objectives for 2024, maintaining the development momentum into 2025. This lays the foundation for realizing the goals set by the 13th National Party Congress.

He emphasized the need to focus on removing obstacles and promoting production and business activities, improving the investment and business environment, and mobilizing and utilizing resources effectively.

Outlining the key tasks and solutions, the Prime Minister first requested the synchronous, vigorous, and effective implementation of tasks and solutions in various fields, in line with the conclusions of the Central Committee, the Politburo, the Party’s key leaders, and the resolutions of the National Assembly and the Government.

Secondly, continue to prioritize growth promotion while maintaining macroeconomic stability, curbing inflation, and ensuring the economy’s major balances. Fiscal policy should be reasonably expansionary, with a focus on key areas. This should be coordinated with monetary policy to ensure proactiveness, flexibility, timeliness, and effectiveness. Continue to adjust exchange rates and interest rate levels appropriately, aiming to reduce lending rates and borrowing costs to support production and business activities. Ensure sufficient credit supply and improve access to credit.

Maintain stability in the foreign currency and gold markets. Tighten financial and state budget discipline, enhance revenue management, and practice thrift in expenditure. Promote digital transformation, adopt electronic invoices, and strengthen tax collection, especially in the field of e-commerce. Continue to implement policies on tax exemption, reduction, and extension of payment deadlines.

Strengthen price management and keep inflation under control. Ensure sufficient electricity and fuel supply for production, business, and consumption, with a resolute commitment to preventing power shortages.

Thirdly, vigorously promote the disbursement of public investment capital and the three national target programs. Continue to enhance the activities of the five Task Forces under the Prime Minister and the 26 Task Forces under the Government members. Resolve to reallocate VND 29.9 thousand billion of unallocated public investment capital and address difficulties in ODA disbursement, striving for a disbursement rate of over 95% of the plan. Promptly handle obstacles and focus on completing site clearance and accelerating the progress of key infrastructure projects.

Develop and organize a 500-day competition program to complete the construction of expressways, aiming to have a continuous expressway system from Cao Bằng to Cà Mau to celebrate the 50th anniversary of the liberation of the South and the 80th anniversary of the August Revolution.

Fourthly, focus on reinvigorating traditional growth drivers (investment, exports, and consumption) and strongly promoting new growth drivers. Diversify markets, products, and supply chains. Boost domestic consumption stimulation, promotions, the “Vietnamese Give Priority to Using Vietnamese Goods” movement, e-commerce, and cashless payments.

Establish specific and effective mechanisms and policies to strongly promote new growth drivers (digital transformation, green transformation, circular economy, sharing economy, knowledge economy, and high value-added fields such as chip manufacturing and AI).

At the same time, increase the supply capacity of the economy, focusing on developing the industry, agriculture, and services sectors, especially high-tech and high value-added industries, and large-scale projects with strong spillover effects to drive growth.

Fifthly, concentrate on perfecting institutions and laws, administrative procedure reform, and promoting national digital transformation. Expedite the issuance of decrees and circulars to ensure their simultaneous effectiveness with relevant laws. Soon establish a Steering Committee for reviewing legal obstacles, headed by the Prime Minister, with Government members as members.

Promptly issue a plan to implement the master plans. Strongly cut and simplify administrative procedures, promote digital transformation, and implement Proposal 06 and the construction of a national data center. Continue to resolve lingering issues and prolonged projects.

Sixthly, pay attention to the fields of culture, society, environment, and social security, and improve people’s lives.

Seventhly, strengthen national defense and security, ensure social order and safety, and enhance corruption and negative phenomenon prevention. Focus on suppressing crimes, especially cybercrimes and high-tech crimes, and prevent fires and explosions.

Eighthly, carefully and effectively implement high-level foreign affairs activities and monitor the implementation of international agreements.

Ninthly, strengthen information and communication to create social consensus, inspire and motivate, and focus on disseminating positive changes, innovations, good models, and new approaches.

Tenthly, actively carry out the tasks of the Socio-Economic Subcommittee of the 14th National Party Congress, ensuring progress and quality, and prepare for the Party Congresses at all levels.

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