On the morning of August 5, Prime Minister Pham Minh Chinh chaired the regular monthly Government meeting for July 2024, with a packed agenda of important discussions.
Prime Minister Pham Minh Chinh chaired the regular Government meeting for July 2024, with a packed agenda of important discussions – Photo: VGP/Nhat Bac
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The meeting focused on discussions about the socio-economic situation in July and the first seven months of the year, the allocation and disbursement of public investment capital, the Government’s direction and administration, and other key tasks for the coming period.
The Purchasing Managers’ Index (PMI) hit a five-year high
Reports and opinions presented at the meeting concurred that the socio-economic situation in July and the first seven months showed 13 outstanding results.
Firstly, the economy continued its positive growth trajectory in all three sectors. The agriculture sector maintained stable growth.
The industrial sector recovered well, with a 0.7% increase in July compared to June and an 11.2% rise year-on-year; for the seven-month period, it grew by 8.5%. Sixty out of 63 provinces and cities saw an increase in the industrial production index in July compared to the same period last year, while three saw a decrease. Notably, the Purchasing Managers’ Index (PMI) for July 2024 reached 54.7 points, the highest since November 2018, with strong growth in output and new orders.
The service sector continued to grow steadily; total retail sales of goods and services revenue in July increased by 9.4%, and by 8.7% for the seven-month period.
Secondly, the macroeconomy remained stable, with inflation well controlled and all major balances ensured. The consumer price index (CPI) for the first seven months rose by 4.12%, up 0.04% from June (while core inflation rose by 2.73%, up 0.02% from June) in the context of a basic wage increase. Energy security and food security were guaranteed (rice exports reached 5.18 million tons, with a turnover of nearly 3.3 billion USD, up 5.8% and 25.1% respectively compared to the same period last year); the labor market recovered well, basically ensuring a balance between labor supply and demand.
Thirdly, exports continued to grow strongly, with a large trade surplus, contributing to a positive balance of payments. Exports in July increased by 6.7% compared to June and by 19.1% year-on-year; for the seven-month period, exports grew by 15.7% (the domestic sector grew by 21.1%, higher than the FDI sector, which grew by 13.8%); imports increased by 18.5%; and there was a trade surplus of 14.08 billion USD.
Fourthly, state budget revenue increased sharply, and the state budget situation continued to improve. Total state budget revenue for the first seven months reached an estimated 69.8% of the yearly estimate, up 14.6% over the same period last year (while 87,200 billion VND in taxes, fees, and charges were exempted or reduced). Public debt, government debt, foreign debt, and budget overspending were all kept below the set limits.
Fifthly, tourism recovered strongly, surpassing pre-pandemic levels. International visitor arrivals in July reached 1.15 million, and for the first seven months, the figure was nearly 10 million, up 51% over the same period in 2023 and up 1.9% compared to the same period in 2019 before the COVID-19 pandemic.
Sixthly, development investment continued to yield positive results, creating a driving force for growth. Disbursement of public investment capital in the first seven months reached 34.68% of the plan. FDI attraction reached 18 billion USD, up 10.9%; FDI realization reached 12.55 billion USD, up 8.4%, the highest in the last five years.
Seventhly, business development continued its positive trend. In July, there were 14,700 newly established enterprises, up 7.3% over the same period last year; for the first seven months, there were 139,500 newly established and re-operating enterprises, up 5.9% over the same period last year (higher than the number of businesses exiting the market).
Eighthly, culture and social sectors were given due attention, and social security was ensured. Activities to commemorate the 77th War Invalids and Martyrs’ Day were well organized. Policies and regimes related to salary increases, social insurance benefits, preferential treatment for revolutionary contributors, and social allowances were implemented correctly, fully, and promptly. The total budget for allowances and preferential treatment for revolutionary contributors increased by more than 5,300 billion VND. In July, 95.8% of households reported having stable or higher incomes compared to the same period.
Ninthly, the implementation of the new salary policy from July 2024 received consensus and support from the entire political system and the people across the country.
Tenthly, efforts were focused on building and basically completing the issuance of decrees guiding the amended Land Law, Housing Law, Real Estate Business Law, and Credit Institution Law.
Eleventhly, administrative reforms, especially the reduction and simplification of administrative procedures, digital transformation, Proposal 06, and anti-corruption efforts were promoted, contributing to strengthening trust among the people.
Twelfthly, political stability and social order and safety were maintained; national defense and security were strengthened. The election of Comrade To Lam as General Secretary by the Central Committee with an absolute majority of 100% of the votes affirmed the great unity and consensus within the Party. External affairs and international integration were promoted, and the country’s prestige and position were enhanced; many international organizations and experts continued to highly appreciate Vietnam’s economic results and prospects.
Thirteenthly, timely response and support were provided to communities affected by natural disasters and floods, especially to families who lost their loved ones or had their houses washed away or damaged.
 Deputy Prime Minister Tran Hong Ha speaks at the Meeting – Photo: VGP/Nhat Bac
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Achieving better results each month and quarter
Concluding the meeting, Prime Minister Pham Minh Chinh agreed with the reports and opinions presented and emphasized additional points on the direction and administration, as well as the results achieved in July and the first seven months of the year.
In July, the Government coordinated with relevant agencies to organize the State funeral for General Secretary Nguyen Phu Trong solemnly and safely, reflecting the deep sorrow and gratitude of the entire Party, people, and army of Vietnam.
The Prime Minister appreciated that, since the beginning of the year, all levels and branches, and localities have proactively, resolutely, and flexibly implemented tasks and solutions in accordance with the resolutions, conclusions, and directives of the Central Committee, the Politburo, the Secretariat, the National Assembly, the Government, and the Prime Minister.
In particular, we have closely monitored the situation and handled emerging issues in the short term flexibly, timely, and effectively, in harmony with medium- and long-term tasks and solutions. Ministers, heads of agencies, and Chairpersons of provincial People’s Committees have proactively and actively performed their functions, tasks, and powers.
In July, 23 decrees, 20 resolutions of the Government, and 3 decisions, 8 telegrams, and 4 directives of the Prime Minister were issued; for the first seven months, 104 decrees, 153 resolutions, 812 decisions, 24 directives, and 71 telegrams were issued.
The Prime Minister has issued many telegrams and documents directing the promotion of growth, control of inflation, and stabilization of the macro-economy; response to natural disasters and floods, and prevention of diseases; and organization of national conferences on promoting public investment, urging the progress of key infrastructure projects, and the 500 kV power line project…
Regarding the socio-economic situation in July and the first seven months of 2024, the Prime Minister stated that the situation continued its positive trend, with results in July higher than in June and results for the first seven months better than in the same period of 2023 in most fields.
 Reports and opinions presented at the meeting concurred that the socio-economic situation in July and the first seven months showed 13 outstanding results – Photo: VGP/Nhat Bac
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On behalf of the Government, the Prime Minister acknowledged, thanked, praised, and highly appreciated the efforts and close coordination of the members of the Government, the leaders of ministries, agencies, and localities, and the entire political system, which contributed to the country’s overall achievements.
Along with the achieved results, the Prime Minister also pointed out the existing difficulties and challenges, including inflationary pressures, especially due to volatile oil and food prices; risks in the global financial, monetary, and real estate markets; and unpredictable global growth, trade, and investment prospects. Production and business activities in some sectors still faced difficulties. Access to credit remained challenging. While the real estate market was initially stable, problems and obstacles were slow to resolve. The deployment of the VND 140,000 billion credit package for social housing was very slow, and there was still VND 26,500 billion of public investment capital unallocated.
The lives of a part of the people, especially in remote, border, and island areas, remained difficult. Natural disaster damage in the first seven months was VND 2,123 billion, 2.3 times higher than in the same period last year. Crime, especially cybercrime, remained complex; and some serious labor accidents and fires occurred…
After analyzing the reasons for the achievements and limitations, the Prime Minister agreed with the lessons learned presented in the reports and the opinions expressed at the meeting, emphasizing the following:
It is necessary to strengthen unity and consensus within agencies and units and in the entire political system and among the people; closely monitor the situation and respond to policies in a timely, flexible, and effective manner; enhance discipline, order, and the sense of responsibility of leaders; promote decentralization and delegation of powers, combined with the allocation of resources, improvement of the implementation capacity of lower levels, and strengthening of inspection, supervision, and control of power; and pay more attention to information and communication work, especially policy communication, to contribute to building trust and creating excitement and promoting the spirit of self-reliance and striving to rise.
Looking ahead, the Prime Minister predicted that the world situation would continue to develop rapidly, complexly, and unpredictably, with both opportunities and challenges, but more challenges.
The Prime Minister stated the goals of continuing to maintain macro-economic stability and control of inflation, while promoting stronger growth, ensuring major balances, and achieving higher surpluses, as well as controlling public debt, government debt, foreign debt, and budget overspending. It is also necessary to maintain political stability and social order and safety and ensure national border security. The guiding viewpoint is that the results of the following months must be higher than those of the previous months, the following quarters better than the previous quarters, and the achievements of 2024 more comprehensive and inclusive than those of 2023.
Regarding tasks and solutions for the coming period, the Prime Minister agreed with the contents of the reports and opinions and emphasized 12 key tasks.
Firstly, ministers, heads of agencies, and chairpersons of provincial People’s Committees, according to their functions, tasks, and powers, should closely monitor the situation and organize the implementation of the resolutions of the Party, conclusions and directions of the Central Committee, the Politburo, the Secretariat, the National Assembly, the Government, and the Prime Minister in a focused and drastic manner, with a sense of responsibility, and with a result-oriented approach; clearly define tasks and responsibilities and set deadlines for completion; strengthen supervision and inspection; promote emulation and commendation; and strictly handle violations.
Secondly, continue to prioritize promoting growth in association with maintaining macro-economic stability, controlling inflation, and ensuring major economic balances.
Continue to proactively, flexibly, timely, and effectively manage monetary policy, in coordination with a reasonable expansionary fiscal policy and 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, striving for a credit growth of about 15% for the whole year, and continuing to reduce lending interest rates. Regarding fiscal policy, the Ministry of Finance should strive for higher revenue and more economical expenditure, strongly promote digital transformation, and apply electronic invoices in revenue management; strictly practice economy in regular expenditures. Effectively implement policies on extension, exemption, and reduction of taxes, fees, and charges.
Synchronously implement solutions to control inflation according to the set targets. The Ministries of Finance, Industry and Trade, Agriculture and Rural Development, Education and Training, and Health, and relevant agencies should focus on ensuring stable markets and prices for essential goods and services. Carefully assess the impact and plan for a roadmap for adjusting prices of services managed by the State (education, health) suitably. Be determined not to let any shortages occur and ensure sufficient supply of electricity and gasoline to meet production and consumption needs in all situations.
At the same time, the Ministries of Planning and Investment and Finance should proactively build a five-year socio-economic development plan, a five-year state budget plan, and a medium-term public investment plan for 2026-2030. In particular, it is necessary to pay attention to not spreading resources too thinly; central budget investment should focus on key and important inter-regional and international connection projects.
Thirdly, focus on renewing traditional growth drivers and strongly promoting new growth drivers. Regarding investment, the Ministry of Planning and Investment should take the lead in promoting the implementation of public investment projects and three national target programs, promoting private investment, strengthening public-private partnerships, and attracting selective FDI.
Regarding exports, consolidate large and traditional markets and expand new markets (UAE, Halal, Latin America); support enterprises in meeting new standards and green standards, promoting trade promotion and market access, and responding to anti-dumping investigations for Vietnamese goods…
Regarding consumption, promote the development of the market, stimulate domestic consumption, promote the “Vietnamese people give priority to using Vietnamese goods” movement, e-commerce, and cashless payment (associated with electronic invoices and tax collection).
Have effective mechanisms and policies to strongly promote new growth drivers (especially in terms of institutions, policies, regional linkage and development, digital transformation, green transition, circular economy, sharing economy, knowledge-based economy, and high-tech fields 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, including building and perfecting the legal framework for green development (green credit market, green transition, circular economy…); and studying policy packages with sufficient scale, feasibility, and suitability to support enterprises and promote new growth drivers such as chip manufacturing and AI. The Ministry of Finance should urgently complete the proposal for developing a carbon market in Vietnam.
Fourthly, resolutely promote the disbursement of public investment capital and three national target programs. Continue to promote the activities of the five Working Groups of the Prime Minister and 26 Working Groups of the members of the Government.
The Ministries of Transport, Industry and Trade, Planning and Investment, and Construction, according to their functions, tasks, and powers, should speed up the progress of key and important national infrastructure projects (especially the 500 kV power line project from Quang Trach to Pho Noi, which is expected to be inaugurated on the occasion of the 79th anniversary of the August Revolution and National Day on September 2); and the system of expressways (striving to put into operation about 3,000 km by 2025).
Expedite the allocation of 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 high demand for additional capital before August 15, 2024.
Fifthly, promote the improvement of institutions and laws, administrative procedure reform, and national digital transformation.
Focus on reviewing and proposing solutions to handle inconsistencies, overlaps, and impracticalities in mechanisms, policies,
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