Efficient and Balanced Economic Management: No Need for Perfection, No Rush, No Surprises

On March 2, at the Government headquarters, Prime Minister Pham Minh Chinh chaired the regular Government meeting for February 2024. The meeting focused on discussing the socio-economic situation in February and the first two months of the year, the three National Target Programs, and the disbursement of public investment capital; as well as the key directions for March and the future.

Those attending the meeting included Deputy Prime Ministers Le Minh Khai and Tran Luu Quang, as well as leaders of Central Committees, Ministries, and Central Agencies.

In his report at the meeting, Minister of Planning and Investment Nguyen Chi Dung stated that the socio-economic situation in February 2024 continued to show positive signs of recovery, although some sectors achieved lower results due to the Lunar New Year; overall, most sectors performed better than the same period in 2023. The macroeconomy was stable, inflation was controlled, and growth was promoted, while major balances were ensured. The Consumer Price Index (CPI) in February rose by 1.04% compared to January; and the average for the first two months increased by 3.67%.

All three regions recorded good development, with stable agricultural growth. Industrial production increased by 5.7% compared to the same period. The total retail sales of goods and consumer service revenue increased by 8.1%; international arrivals reached over 3 million, up 68.7%. The Purchasing Managers’ Index (PMI) in February reached 50.4, indicating an improvement in the manufacturing sector, with both output and new orders increasing.

The total export turnover in the first two months increased by 18.6%, with exports up 19.2%; energy security and food security were ensured, with rice exports reaching 912 thousand tons, a 74.8% increase, and a turnover of 639 million USD, a 96.6% increase compared to the same period last year; labor supply and demand were balanced.

Investment continued to yield positive results; the development of businesses continued to grow. Cultural and social sectors received special attention; social security was ensured; people’s lives were improved. People across the country celebrated a happy Lunar New Year; no one was left without Tet; political and social stability was maintained, national defense and security remained steadfast, and social order and safety were ensured; administrative reform and anti-corruption efforts were strengthened; international integration and diplomacy were promoted.

At the meeting, members of the Government and delegates thoroughly discussed the situation, analyzed the tasks, and proposed development solutions for the economy and society in March and the near future. This included evaluating leadership, direction, and organization, ensuring macroeconomic stability and major balances, controlling inflation, and promoting growth; the social security situation; the strong promotion of digital transformation, green economy, circular economy, knowledge-based economy, and sharing economy; revitalizing traditional driving forces, with a focus on consumption, investment, and exports; attracting foreign direct investment (FDI); addressing difficulties and barriers in some areas such as medicine procurement and medical supplies; continuing strategic breakthroughs and human resource development, promoting the restructuring of district and communal administrative units.

After listening to opinions, concluding remarks, and analysis of the situation in the world and in the country, Prime Minister Pham Minh Chinh pointed out what has been done, what has not been done, and what challenges and limitations exist. The pressure to manage macroeconomic policies remains high due to fluctuations in crude oil prices, food prices, and exchange rates in the global market; risks in financial, monetary, and real estate markets; the increasing trends of political, economic, and social instability. The situation of industrial and commercial production in some sectors still faces many difficulties, with one of the main reasons being insufficient capital and high interest rates; the industrial production of some sectors is recovering slowly.

In terms of lessons learned, the Prime Minister emphasized the need to be practical, grasp the situation, react quickly, appropriately, and efficiently. In managing the economy, there should be no excessive perfectionism or haste. Actively and proactively solve tasks according to the functions, tasks, and authority of all levels, sectors, localities, agencies, and units; ensure an overall, comprehensive, substantive, effective approach without evading or shifting responsibilities; demonstrate a high sense of responsibility, rather than just a formality. Take advantage of opportunities and favorable conditions to overcome difficulties and challenges; promote production and business activities; create favorable conditions for people and businesses to unleash their creativity and sense of responsibility towards the country; create jobs and livelihoods for the people.

In the future, the Prime Minister required that each ministry, sector, and locality thoroughly review the tasks for March, the first quarter of the year, the entire year, and the entire term, and focus on directing the organization for effective implementation. This includes consistently prioritizing growth associated with macroeconomic stability, controlling inflation, and ensuring major balances of the economy.

Promote strategic breakthroughs, restructure the economy in conjunction with renewing the growth model, improve productivity, quality, efficiency, and competitiveness of the economy; pay attention to comprehensive development, synchronizing cultural, social, educational, and healthcare sectors; focus on ensuring social security, sustainable poverty reduction, improving material and spiritual lives of the people; effectively manage land, resources, environmental protection, disaster prevention, and response to climate change, especially saline intrusion in the Mekong Delta; implement high-level foreign affairs activities; maintain a peaceful and stable environment for national development; resolutely combat corruption and negativity. Consolidate and strengthen national defense and security, preserve independence and sovereignty.

Regarding some key tasks and solutions, the Prime Minister stressed the need for proactive, flexible, timely, and effective monetary policy management; coordinated, consistent, and close coordination with other fiscal policies, expanding the budget appropriately, with priorities and focus on key policies and other policies; vigorously strive to increase revenues and save expenditures for the state budget; strengthen price management and the market; ensure inflation control according to set targets and promote growth; resolutely avoid power outages and ensure electricity and petroleum supply for production, business, and consumption; pay attention to the deployment of power transmission and generation projects.

Renew traditional growth drivers and promote new growth drivers, with a strong emphasis on improving institutions and laws to mobilize and efficiently utilize all resources; vigorously promote the development of the six economic development zones; take advantage of new opportunities from the global and regional production, trade, and investment supply chain shifts; strongly promote digital transformation, green transformation, circular economy, new industries and sectors such as semiconductor chips, artificial intelligence; attract green financial resources, preferential green credit for the development of renewable energy, new energy, hydrogen; build and develop regional and international financial centers in Vietnam.

Accelerate the disbursement of public investment capital, 03 National Target Programs; expedite planning approval; focus on improving mechanisms, policies, laws, administrative procedure reform, and overcoming difficulties in socio-economic development; focus on major cultural, social, environmental sectors; ensure social security, people’s lives; strengthen national defense, security; intensify anti-corruption, negative practices; proactively implement substantial, substantive, effective high-level foreign affairs activities; strengthen information and communication work, create social consensus; implement the tasks of the Socio-Economic Subcommittee of the 14th Party Congress.

* On the occasion of the 65th anniversary of Border Guard Day (March 3, 1959 – March 3, 2024), on behalf of the Government, the Prime Minister sent sincere greetings, warm sentiments, and best wishes to officers and soldiers of the Border Guard Forces nationwide, as well as to the heroic Vietnam People’s Army as a whole.