The Road to Economic Recovery: A System-Wide Effort.

This is affirmed through economic development indices such as: Gross Domestic Product (GDP) in the first six months increased by 6.42% over the same period last year, only lower than the growth rate of 6.58% in the first six months of 2022 in the period of 2020 – 2024. Inflation continues to be kept under control; the average Consumer Price Index (CPI) increased by 4.08% (still within the range assigned by the National Assembly from 4 – 4.5%). Export turnover is estimated at US$190.08 billion, up 14.5% over the same period last year. The trade balance surplus is estimated at US$11.63 billion. Notably, total registered foreign investment capital in Vietnam reached nearly US$15.2 billion, up 13.1% over the same period in 2023…

In fact, where the whole political system gets involved, there are very clear results in localities and sectors, and difficulties and obstacles are removed. The most remarkable imprint can be mentioned in the effort to deploy important national projects and key projects in three fields: roads, railways, and aviation. For example, Long Thanh Airport has taken a clear shape; recently, nearly US$2 billion in domestic capital has been mobilized for this project; obstacles related to capital, ground, and materials have been resolved, and the focus now is on construction with “3 shifts and 4 crews”. Other projects such as Tan Son Nhat International Airport’s T3 Terminal, expansion of Noi Bai International Airport’s T2 Terminal, etc., are being actively implemented.

For the North-South Expressway projects, land clearance is always a challenging issue that needs to be urgently addressed. In the past time, the Prime Minister has also continuously directed and requested the localities where the projects pass through to closely monitor the progress, accelerate land clearance for major transport projects, especially to complete the site clearance and hand over the North-South Expressway project in the 2021-2025 period; the two ring road projects of Hanoi and Ho Chi Minh City; and the three East-West expressway projects. Along with that, localities are also requested to strengthen direct working with the people, flexibly and effectively apply the provisions of the law to resolve legitimate complaints and petitions of the people…

Another important project is the 500 kV transmission line, Route 3, from Quang Trach to Pho Noi. During the inspection of the project’s construction site on June 22-23, 2024, Prime Minister Pham Minh Chinh requested Vietnam Electricity (EVN) and the National Power Transmission Corporation (EVNNPT) to focus on directing the completion of the 500 kV Thanh Hoa transformer station on June 28, 2024, the 500 kV transmission line project from Thanh Hoa to Nam Dinh 1 Thermal Power Plant on June 30, 2024, and in July 2024, to organize the investor’s acceptance, state acceptance, environmental restoration, and inauguration of the whole project.

Mr. Luu Viet Tien, Deputy General Director of EVNNPT, said that due to the importance of the project, not only EVNNPT but also power units of EVN and other units have shown high responsibility and actively supported with great efforts, regardless of difficulties and hardships.

Up to now, about 1,800 engineers and workers from the Northern Power Corporation, Central Power Corporation, Southern Power Corporation, Hanoi Power Corporation, and Ho Chi Minh City Power Corporation have been mobilized to support the construction of the project. Along with that, EVN has also received construction support in terms of human resources from Viettel Group, Vietnam National Oil and Gas Group, and Vietnam Post and Telecommunications Group, among others, in the construction of pylons and wire pulling for the projects.

In addition, following the direction of the Prime Minister, nine provinces and cities where the project passes through have coordinated with EVN/EVNNPT to establish about 300 teams with more than 4,000 young volunteers. The main focus is to coordinate with local authorities in propagating and mobilizing people to hand over the route corridor; support the dismantling of houses and cutting down trees in the corridor; assist in traffic control when pulling wires across road crossings; and encourage and present gifts to boost the morale of workers on the construction site.

With that spirit, at 11:48 on June 30, 2024, the National Power Transmission Corporation and the Northern Power Project Management Board coordinated with related units to successfully energize the 500 kV transmission line, Route 3, from Thanh Hoa to Nam Dinh 1 Thermal Power Plant. The completion and energization of the project met the requirements of the Prime Minister’s direction, which is a great motivation for the whole construction site of the 500 kV transmission line, Route 3, to strive to complete the acceptance and energization as required.

In the field of production and business, there are also many positive recovery signals. According to the General Statistics Office, in the first six months of 2024, the added value of the industry increased by 7.54% over the same period last year; in which, the processing and manufacturing industry increased by 8.67%.

Accordingly, import and export activities also grew well as the main import commodities were production materials, including machinery and equipment, and raw materials. Besides positively affecting GDP growth, export growth also greatly contributed to economic restructuring by creating jobs for millions of workers, helping to stimulate the renewal of equipment and production technology. Exports not only help Vietnam earn foreign currency for imports but also increase capital accumulation and improve people’s living standards.

Mr. Pham Cong Thao, Deputy General Director of Vietnam Steel Corporation (VNSteel), also believed that thanks to some positive signals such as Vietnam’s good economic growth, improved growth indicators quarter after quarter, and the promotion of public investment, the government also pays great attention to removing difficulties for the real estate and construction sectors. It is forecast that in the last six months of the year, the steel market will likely continue to recover, creating a premise for stronger development in the following year.

Another noteworthy point is that legal bottlenecks are gradually being removed, especially in the real estate sector. New policies and laws such as the Law Amending and Supplementing a Number of Articles of the Land Law No. 31/2024/QH15, the Housing Law No. 27/2023/QH15, the Real Estate Business Law No. 29/2023/QH15, and the Law on Credit Institutions No. 32/2024/QH15 were officially passed by the National Assembly at the 7th session of the XVth tenure.

Especially, the effectiveness of related policies such as the Land Law 2024, the Housing Law 2023, and the Real Estate Business Law was pushed forward by five months, taking effect from August 1, 2024. This is expected to overcome the existing problems in land valuation, compensation, and support for resettlement, which are the causes of officials’ fear of responsibility and avoidance of work. At the same time, it will create a legal corridor, release land resources, promote the development of the real estate market, and accelerate the implementation of public investment projects and social housing projects…

According to the General Director of the General Statistics Office, Nguyen Thi Huong, to continue maintaining the growth momentum in the last months of the year, it is necessary to prioritize boosting domestic consumption demand. The Government, ministries, branches, and localities should synchronously implement solutions such as reducing the prices of consumer goods; adjusting salaries; reducing personal income tax and enterprise income tax; increasing consumer loans; and at the same time, implementing debt rescheduling and debt freezing, and increasing social security support, especially direct support for the poor, expanding unemployment insurance, reducing tuition fees and medical examination and treatment fees.

In addition, in the last months of 2024, it is necessary to promote the removal of “bottlenecks” in financial procedures and the flexible and quick coordination between ministries, branches, localities, and investors to promote public investment disbursement…