The Prime Minister requested that Government members attending the meeting focus on assessing the socio-economic situation in a realistic manner without exaggeration or downplaying – Photo: VGP/Nhat Bac
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Achieving Encouraging Results
According to the Ministry of Planning and Investment, over the past eight months, the economy has continued to achieve important and encouraging results, receiving high evaluations from international organizations and businesses. The macro economy remains stable, with inflation under control, and major balances ensured. The state budget deficit, public debt, government debt, and foreign debt are all significantly lower than the permitted limits. The consumer price index (CPI) rose by 4.04% during the eight-month period compared to the same period last year, remaining within the National Assembly’s target.
Additionally, the exchange rate has been proactively and flexibly managed, keeping pace with global market developments. State budget revenue for the first eight months is estimated at 78.5% of the estimate, up 17.8% from the previous year. Trade turnover, exports, and imports for the eight-month period increased by 16.7%, 15.8%, and 17.7%, respectively, resulting in an estimated trade surplus of US$19.1 billion. Major balances have been maintained.
Furthermore, the growth drivers from the supply side have continued to improve positively. Agricultural and service production maintained a good growth rate. Industrial production has recovered rapidly, with the industrial production index (IPI) in August increasing by 9.5% year-on-year, and by 8.6% during the eight-month period, with the processing and manufacturing industry expanding by 9.7%.
“Notably, the growth drivers from the demand side have shown a positive recovery,” affirmed Deputy Minister Tran Quoc Phuong.
Foreign direct investment (FDI) remains a bright spot, with registered FDI capital reaching approximately US$20.5 billion in the eight-month period, a 7% increase over the same period last year. Newly registered FDI capital stood at nearly US$12 billion, up 27%, while realized FDI capital was approximately US$14.15 billion, a year-on-year increase of 8%.
Deputy Minister of Planning and Investment Tran Quoc Phuong stated that the economy has recovered positively and regained its pre-pandemic growth momentum – Photo: VGP/Nhat Bac
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In parallel, social security has been guaranteed, and people’s lives have continued to improve. Culture and social sectors have also received attention and focus. Political stability and national independence and sovereignty have been maintained, while national defense and security have been strengthened. The security and social order situation remained fundamentally stable, ensuring a joyful, safe, and healthy holiday for the people during the National Day celebrations. Proactive and comprehensive foreign affairs and international integration efforts have been made, especially in high-level foreign affairs.
However, it is important to acknowledge that the economy still faces difficulties and challenges, and growth drivers have not yet shown a significant acceleration. To address this, Deputy Minister Tran Quoc Phuong emphasized the need for more effective coordination between levels, sectors, and localities, promoting a spirit of companionship with businesses, and fostering a sense of innovation and creativity in thinking and actions to best accomplish assigned tasks. These efforts are aimed at promoting a stronger economic recovery and achieving a growth rate of 6.8-7% for the whole year, striving for a rate of over 7%.
Key Tasks and Solutions
The Ministry of Planning and Investment assessed that the requirements for growth in the last months of 2024 and beyond are very high. It is necessary to effectively exploit favorable conditions and opportunities to create a marked change in growth drivers, striving to achieve higher results than planned for 2024 and creating a premise for 2025. The following are key tasks for September and the fourth quarter:
First, thoroughly and carefully prepare and ensure the progress of content for the 10th Plenum of the Party Central Committee and the National Assembly’s 8th session. Proactively coordinate early and closely with the National Assembly’s agencies to finalize and concretize large-scale policy groups that have been approved by the Government for proposal, such as the Law on Public Investment (amended), the laws amending and supplementing a number of articles of the Laws on Planning, Investment, and Investment in the form of Public-Private Partnership (PPP), especially new and breakthrough regulations on decentralization, delegation of power, resource management, investment attraction, and special mechanisms…
Second, continue to prioritize resources to perfect mechanisms, policies, and laws, creating a favorable and open environment to attract large-scale investment projects with advanced technology; build, attract, and make effective use of talented human resources, both domestically and internationally.
Third, focus on reviewing and thoroughly resolving difficulties and obstacles, especially legal issues, for all projects to maximize the release of resources for growth and development.
“This needs to be identified as a breakthrough task, focusing on the last months of 2024 and the whole of 2025,” emphasized Deputy Minister Tran Quoc Phuong.
Fourth, continue to strongly promote and renew traditional growth drivers in terms of investment, consumption, and exports.
Fifth, promote new growth drivers from the digital economy, digital transformation, green transition, etc.; promote regional linkage and enhance the effectiveness of the activities of regional coordination councils.
Along with this, it is necessary to continue ensuring macroeconomic stability and major balances of the economy; pay attention to social security work and the development of culture, education, health, and environmental protection; closely monitor natural disasters and floods, respond promptly and effectively, minimize damage, support people to overcome the consequences of natural disasters, and soon restore production and stable lives; ensure national defense and security and social order and safety; promote economic diplomacy and continuously consolidate and enhance the country’s position and prestige in the international arena; strengthen information and propaganda, especially policy communication, improve the effectiveness of civil affairs work, create social consensus; resolutely rectify and overcome the situation of shirking and pushing responsibilities; and effectively implement regulations on the protection of officials, encouraging them to dare to think and dare to do…
The Power of the Vietnamese Dong: A Central Bank Perspective
From early 2024 onwards, in the face of international market pressures and domestic challenges, the State Bank of Vietnam has implemented a range of measures to support the Vietnamese Dong (VND).
Optimizing the Public Investment Law to Meet the Demands of the New Era
“As shared by Mr. Tran Quoc Phuong, Deputy Minister of Planning and Investment, the 2019 Public Investment Law has unveiled certain challenges and obstacles after nearly five years of implementation. Some provisions are now considered inadequate for the current practical situation and the new development requirements. Simultaneously, there are newly-issued pilot mechanisms and policies by the National Assembly that necessitate further research for institutionalization under the Law.”
Sure, I can assist with that.
“Minister of Natural Resources and Environment, Do Duc Duy: ‘The 2024 Land Law will contribute to the perfection of the institution.’”
The new Land Law of 2024, as shared by Minister of Natural Resources and Environment Do Duc Duy, will introduce groundbreaking changes. These innovative provisions will significantly impact people’s lives, marking a pivotal step towards the government’s goal of reforming and perfecting the nation’s institutions and policies.
Fiscal Policy: To Loosen or Tighten?
From 2020 onwards, Vietnam has implemented an expansionary fiscal policy, providing relief to businesses and citizens through tax breaks, waivers, and deferrals amounting to nearly VND 200,000 billion per year. This has resulted in an estimated 17.8% year-on-year increase in state budget revenue for the first eight months of this year, indicating a robust economic growth trajectory. With predictions of reaching 6.5% growth in 2025-2026, the question arises: What should Vietnam’s fiscal policy look like going forward?
