On September 7, in Hanoi, Minister and Chairman of the Government Office Tran Van Son, Spokesperson of the Government, chaired the regular press conference for August 2024.
ECONOMY CONTINUES TO GROW IN ALL THREE REGIONS
Opening the press conference, Minister Tran Van Son provided information on the content of the regular Government meeting held that morning under the chairmanship of Prime Minister Pham Minh Chinh to assess the socio-economic situation in August and the first eight months of 2024.
Accordingly, the Government unanimously assessed that the socio-economic situation in August and the first eight months of 2024 continued its positive recovery trend, achieving positive and comprehensive results in all fields, basically achieving the set targets, and contributing to consolidating the foundation for achieving and exceeding the 15 targets set for 2024.
The economy continued to grow in all three sectors. The agricultural sector maintained stable growth. The industrial sector recovered well, with a 2% increase compared to July and a 9.5% rise year-on-year; in the first eight months, it increased by 8.6%. The service sector continued to grow significantly; total retail sales of goods and services in August rose by 7.9%, and by 8.5% in the first eight months. International visitors in the first eight months reached nearly 11.4 million, up 45.8% over the same period in 2023 and up 1% compared to the same period in 2019 (pre-COVID-19 period).
The macro-economy remained stable, with inflation under control, and the major balances ensured with a surplus. The average consumer price index in the first eight months increased by 4.04% (while the core inflation rate rose by 2.71%). Monetary and fiscal policies were flexibly managed according to market developments; exchange rates and interest rates remained basically stable. Energy security and food security were guaranteed (rice exports reached 6.16 million tons, with a turnover of about USD 3.85 billion, up 6% and 21.7%, respectively, compared to the same period). The labor market recovered well, basically ensuring a balance between labor supply and demand.
Exports continued to increase significantly, with a large trade surplus, contributing to ensuring the balance of payments. Exports rose by 3.7% compared to July and 14.5% over the same period last year; in the first eight months, they increased by 15.8%; imports increased by 17.7%; and the trade surplus was USD 19.07 billion.
State budget revenue increased sharply, and the state budget situation continued to improve. Total state budget revenue in the first eight months was estimated at 78.5% of the yearly estimate, up 17.8% over the same period (while VND 90 trillion of taxes, fees, and charges were exempted or reduced).
Development investment continued to achieve positive results, creating a driving force for growth. Disbursement of public investment capital in the first eight months reached 40.49% of the plan. FDI attraction reached USD 20.52 billion, up 7%; FDI realization reached USD 14.15 billion, up 8%, the highest in the last five years.
Culture, social affairs, and social security were given due attention. Administrative reform, especially the reduction and simplification of administrative procedures, digital transformation, and Proposal 06, were actively implemented. Anti-corruption efforts were strengthened, contributing to consolidating people’s trust in the government.
Along with affirming the achievements, Minister Tran Van Son also acknowledged some existing shortcomings, limitations, difficulties, and challenges, including: (1) Slow disbursement of public investment capital by many ministries, sectors, and localities; (2) Discipline and rules were not strictly observed in some cases; (3) Resolution of lingering projects needs to be faster and more effective; (4) The economy’s absorptive capacity is not high, and mobilization and use of resources are not truly effective; (5) More efforts are needed to remove difficulties and obstacles for production and business; (6) Information and communication work has not been very effective, and in some cases, it has not had a positive impact or widespread positive social impact.
CONTINUING TO PRIORITIZE GROWTH
Based on the identified causes, lessons learned, and analysis of the international, regional, and domestic situations, with a spirit of creating new momentum and a new spirit to propel the country forward in the new era, the Prime Minister requested that all levels, sectors, and localities must have even greater determination, make even greater efforts, and be more proactive and active in performing their functions, tasks, and powers, addressing emerging issues, and implementing the resolutions and directives of the Party, State, National Assembly, Government, and superiors.
In that spirit, the Prime Minister requested to continue focusing on the set goals of macroeconomic stabilization, growth promotion, and inflation control, ensuring the major balances. Priority should be given to growth, striving for higher growth in 2024 and 2025 to make up for the previous three years of the term.
To prioritize growth, it is necessary to proactively, flexibly, timely, and effectively manage monetary policy in coordination with a reasonably expanded fiscal policy, with a focus on key areas, and in harmony with other macro policies.
Focus on stabilizing the exchange rate, striving to reduce lending interest rates, continue to improve access to credit, especially for priority areas, and strive for credit growth of about 15% for the whole year. Increase revenue and practice thrift in state budget spending, ensuring timely and adequate collection, expanding the revenue base; strongly promote digital transformation and the application of electronic invoices in revenue management; strictly practice thrift in regular expenses, and increase investment development spending. Effectively implement policies on tax extension, reduction, and exemption.
Control inflation according to the set target. Promote production and ensure the supply of food and foodstuffs; proactively manage to ensure the supply of gasoline and energy. Prepare carefully, assess the impact, and have a roadmap to adjust the prices of services managed by the State suitably, not increasing them at the same time, and not managing them haphazardly.
Ministries, sectors, and localities need to focus on renewing traditional growth drivers, including investment, exports, and consumption. At the same time, they should strongly promote new growth drivers, vigorously promote innovation, science and technology, digital transformation, green transition, circular economy, sharing economy, knowledge economy, and new industries (such as semiconductor chips, AI…). This is a strategic choice and an objective requirement, a top priority for rapid and sustainable development.
Review and reduce administrative procedures, especially those related to land law implementation. Promote the improvement of institutions and laws and the reform of administrative procedures and national digital transformation. Each ministry, sector, and locality should focus on reviewing and proposing solutions to handle mechanisms, policies, and legal provisions that are no longer appropriate for amendment, supplement, and timely removal.
Pay attention to culture, social affairs, and the environment; ensure social security and improve people’s lives. Closely monitor natural disasters and floods, respond promptly and effectively, and minimize damage. At present, it is necessary to do a good job of supporting and overcoming the consequences of Storm No. 3, ensuring that no one goes hungry or cold. Effectively and substantially carry out the emulation movement to eliminate temporary and dilapidated houses nationwide.
Focus on completing the arrangement of administrative units at the district and communal levels. Strengthen national defense and security capabilities; step up anti-corruption and negative behavior; and improve the efficiency of foreign affairs and international integration.
Enhance information and communication, especially policy communication, to create a driving force, inspire, and contribute to social consensus and a positive and enthusiastic spirit of striving to rise across society, maintaining the pace and momentum of development.
The assigned ministries and agencies focus on preparing, reviewing, and completing reports to the Politburo, the Party Central Committee’s Secretariat, and well preparing documents for the 10th Plenum of the Party Central Committee and the 8th Session of the XV National Assembly. At the same time, actively implement the tasks of the Socio-Economic Sub-Committee and well serve the Party Congress at all levels, towards the 14th Congress of the Party.
