At the regular Government meeting for July 2024, chaired by Prime Minister Pham Minh Chinh on the morning of August 5, the key goal was emphasized as maintaining macroeconomic stability and curbing inflation, while also promoting stronger growth, ensuring major balances with higher surpluses, and effectively managing public, government, and foreign debts, as well as budget deficits. The focus was also on upholding political stability and social order, along with safeguarding national border sovereignty.
“The guiding principle is to achieve higher results each month and quarter, with the accomplishments of 2024 surpassing those of 2023 in a more comprehensive and inclusive manner,” the Prime Minister emphasized.
Regarding the tasks and solutions for the coming period, the Prime Minister agreed with the reports and opinions presented, highlighting 12 key priorities.
PRIORITIZING GROWTH PROMOTION ALONGSIDE MACROECONOMIC STABILITY
First, ministers, heads of agencies, and provincial People’s Committees should closely monitor the situation and resolutely and efficiently implement the resolutions of the Party, the conclusions and directions of the Central Committee, the Politburo, the Party Central Committee’s Secretariat, the resolutions of the National Assembly, and the Government’s directions and the Prime Minister’s instructions. They should focus on key tasks, settle each task thoroughly, and assign specific tasks with clear responsibilities and deadlines, enhancing supervision, inspection, and rewards while promptly handling violations.
Second, continue to prioritize growth promotion in tandem with maintaining macroeconomic stability and curbing inflation, ensuring the economy’s major balances.
The monetary policy should be proactively, flexibly, timely, and efficiently administered, in coordination with a reasonably expanded fiscal policy, focusing on key areas, along with other macro policies.
Regarding monetary policy, the State Bank of Vietnam should focus on stabilizing exchange rates and the foreign exchange market, increasing access to credit, especially for priority areas, aiming for a credit growth of about 15% for the year, and further reducing lending interest rates.
As for fiscal policy, the Ministry of Finance should strive to increase revenue and practice thrift in expenditure, vigorously promoting digital transformation and the application of electronic invoices in revenue management. They should also exercise austerity in regular expenditures, effectively implementing policies on tax, fee, and charge exemptions and reductions.
Synchronized measures should be implemented to control inflation as per the set targets. The ministries of Finance, Industry and Trade, Agriculture and Rural Development, Education and Training, and Health, along with relevant agencies, should focus on ensuring stable markets and prices for essential goods. They should carefully assess the impact and devise a suitable roadmap for adjusting the prices of public services (education and healthcare). It is imperative to ensure sufficient supply under all circumstances, resolutely preventing shortages of electricity and gasoline.
Simultaneously, the ministries of Planning and Investment and Finance should proactively devise the socio-economic development plan, the national five-year financial plan, and the medium-term public investment plan for 2026–2030. Particular attention should be given to avoiding scattering investments. Central budget investment should be concentrated on critical and key national projects, inter-regional projects, and those with international connections.
STIMULATING NEW GROWTH DRIVERS
Third, focus on reinvigorating traditional growth drivers and vigorously promoting new ones. Regarding investment, the Ministry of Planning and Investment should take the lead in accelerating the implementation of public investment projects and three national target programs, boosting private investment, strengthening public-private partnerships, and selectively attracting FDI.
In terms of exports, efforts should be made to consolidate major and traditional markets while expanding into new ones (UAE, Halal, Latin America). Support should be provided to businesses in meeting new standards, especially green standards, promoting trade, and accessing potential markets, along with investigating anti-dumping measures against Vietnamese goods.
Vice-Premiers and Ministers speaking at the meeting – Photo: VGP
Regarding consumption, it is crucial to stimulate domestic consumption, promote the “Vietnamese give priority to using Vietnamese goods” movement, and encourage e-commerce and cashless payments (linked to electronic invoices and tax collection).
Effective mechanisms and policies should be established to vigorously promote new growth drivers, especially in terms of institutions, policies, regional and inter-regional economic development, digital transformation, green transition, circular and sharing economies, and knowledge-based and high-value-added sectors, such as chip manufacturing and AI.
The Ministry of Planning and Investment should take the lead in reviewing and proposing mechanisms and policies to create breakthroughs in these areas. This includes developing and perfecting the legal framework for green development (green credit and bond markets, green transition, and circular economy) and researching large-scale, appropriate, and feasible policy packages to support businesses and stimulate new growth drivers like chip manufacturing and AI. The Ministry of Finance should urgently complete the proposal for developing a carbon market in Vietnam.
ACCELERATING PUBLIC INVESTMENT DISBURSEMENT
Fourth, more vigorously promote the disbursement of public investment and the three national target programs. Continue to enhance the activities of the five working groups directly under the Prime Minister and the 26 working groups under the Government members.
The ministries of Transport, Industry and Trade, Planning and Investment, and Construction, according to their functions, tasks, and authority, should expedite the progress of key and critical national infrastructure projects, especially the 500 KV power transmission line from Quảng Trạch to Phố Nối, which is expected to be inaugurated during the 79th anniversary of the August Revolution and National Day on September 2. They should also strive to have about 3,000 km of expressways in operation by 2025.
It is imperative to promptly allocate the remaining VND 26,500 billion of public investment capital. The Ministry of Planning and Investment should resolutely transfer capital to tasks and projects with fast disbursement and additional capital needs before August 15, 2024.
PROMOTING NATIONAL DIGITAL TRANSFORMATION
Fifth, promote the completion of institutions and laws, administrative procedure reform, and national digital transformation.
Focus on reviewing and proposing solutions for handling inconsistencies, overlaps, and impracticalities in mechanisms, policies, and legal regulations. Report to the Steering Committee for handling problems in the system of legal documents.
Expedite the issuance of a decree on using regular expenditure funds for investment (for the repair and upgrade of works worth less than VND 15 billion) (led by the Ministry of Finance) and a decree on rooftop solar power (led by the Ministry of Industry and Trade).
Study the amendment of the laws on Public Investment, Investment, Bidding, Investment in the form of Public-Private Partnership, Enterprise, and other legal provisions that are no longer suitable in the form of a law amending multiple laws (led by the Ministry of Justice).
Vigorously cut and simplify administrative procedures, promote digital transformation, and implement Proposal 06 and the construction of the National Data Center. Hasten the issuance of plans to implement the approved master plans, especially regional and provincial plans.
Sixth, continue to focus on resolving long-standing problems.
Seventh, pay attention to culture, society, and the environment, ensuring social security and improving people’s lives.
The ministries of Agriculture and Rural Development and Natural Resources and Environment, along with local authorities, should closely monitor natural disasters and proactively respond to minimize losses. Ensure that no one is left without shelter or food, and provide timely support and food aid.
Ministries, sectors, and localities should promote the movement to contribute to the fund for the whole country to join hands in eliminating temporary and dilapidated houses for poor and near-poor households. The Ministry of Health should focus on handling issues and promoting activities related to the Vietnam-Germany Hospital and Bach Mai Hospital projects. The Ministry of Education and Training should prepare for the new school year, ensuring no increase in textbook prices, and focus on school hygiene and safety and preventing child drowning.
The Ministry of Labour, Invalids and Social Affairs should enhance the situation’s monitoring and proactively implement measures to ensure the balance between labor supply and demand, especially in industrial zones.
ENHANCING ADMINISTRATIVE PROCEDURE REFORM
Eighth, enhance administrative procedure reform, improve the business investment environment, and promote national digital transformation. Request ministries, sectors, and localities to develop digital transformation proposals connected to Proposal 06 within August 2024.
Ninth, strengthen national defense and security and step up the fight against corruption and negativity.
Tenth, improve the efficiency of foreign affairs and international integration. Effectively organize high-level foreign affairs activities and proactively implement high-level agreements and prepare for upcoming visits. Effectively exploit signed free trade agreements (FTAs) and promote negotiations for new ones.
Eleventh, enhance information and communication work, especially in communicating policies, good models, and good practices, contributing to creating social consensus and a vibrant and striving atmosphere in society.
Twelfth, actively implement the tasks of the Socio-Economic Subcommittee to serve the 14th National Party Congress, well prepare for Party congresses at all levels, and proceed to the 14th National Party Congress. Prepare reports and documents to submit to the Politburo, the Party Central Committee’s Secretariat, and the Central Committee, along with documents for the 8th session of the 15th National Assembly, ensuring progress and quality.
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