2024-07-22 11:09:00
Key solutions to promote growth and control inflation in July and the 3rd quarter
Prime Minister Pham Minh Chinh urged ministries, agencies, and localities to implement key tasks and solutions to promote growth, control inflation, and stabilize the macroeconomy in July and the third quarter of 2024.
>> UOB: The Vietnamese economy is expected to grow by 6-6.5% in 2024
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In his official telegram No. 71 sent to ministers, heads of ministerial-level agencies, and government-affiliated agencies, as well as the chairpersons of the People’s Committees of provinces and centrally-run cities, the government leader emphasized that under the Party’s leadership and with the support of the National Assembly, the resolute and effective direction and management of the government and Prime Minister, the concerted efforts of ministries, sectors, and localities, support from businesses and the population, along with assistance from international friends, the socio-economic situation of Vietnam in the first six months of this year has shown clear signs of recovery in several areas.
| Steel production at Hoa Phat group’s factory. |
| Photo: VNA/CVN |
According to the telegram, it is necessary to continue focusing on the prompt resolution of difficulties faced by individuals and businesses. The government leader requested the Ministry of Finance to effectively implement policies aimed at extending tax payment deadlines, land use fees; reducing value-added tax rates and lowering fees.
The State Bank of Vietnam must efficiently use operational tools to regulate exchange rates and interest rates in accordance with macroeconomic developments and set objectives that meet the capital needs of the economy; effectively deploy measures to manage bad debts and improve credit quality.
Banks are expected to continue reducing operating costs, increasing the application of information technology, and digital transformation to lower lending rates in priority areas; promote credit growth, focusing on production and business sectors, priority areas, drivers of economic growth, prioritizing credit limits for the effective operation of credit institutions, especially those for social housing, green growth, digital transformation, circular economy…
It is important to promote the disbursement of public investment capital and enhance public-private partnerships (PPP).
The Ministry of Finance must drastically implement digital transformation and regulations on electronic invoices, particularly encouraging the application of digital transformation in budget revenue and expenditure, improving the efficiency of state budget revenue and expenditure management; ensuring correct, complete, and timely collection, broadening the revenue base, and preventing tax losses, especially related to e-commerce.
Moreover, it is necessary to continue saving and significantly reduce regular expenditures dedicated to development investments and social order. Ministries, agencies, and localities must strictly apply the requirement to save 5% of regular expenditures by 2024.
It is essential to promote production and export; develop the domestic market; ensure energy security and food security; continue to diversify export markets, products, and supply chains; prioritize exploiting and enhancing opportunities offered by key and strategic export markets and signed free trade agreements (FTAs); and promote negotiations and the signing of new FTAs.
The Prime Minister has called for strengthening preventive measures against climate change and natural disasters, continuing to promote the development of green and clean energy, and soon completing the carbon market development project in Vietnam.
Additionally, more attention must be paid to cultural and social areas, ensuring the rapid and full implementation of social welfare policies, supporting beneficiaries of these policies and people in difficult situations.
The government leader called for focusing on perfecting institutions, laws, mechanisms, and policies to immediately eliminate difficulties and obstacles, and to release resources for promoting socio-economic development; to promote reform, reduction, simplification of administrative procedures, digital transformation, and improvement of the business and investment environment.
Furthermore, it is necessary to complete the dossier to submit to the government the project for rearranging administrative units at the district and commune levels for the period 2023-2025, ensuring its completion before September 30, 2024, to prepare for Party congresses at all levels for the period 2025-2030.
VNA/CVN
Future Trends in Vietnam’s Economic Growth and Inflation Control
The economic landscape in Vietnam is poised for significant evolution as the government embarks on strategic measures to foster growth and maintain inflation control through July and the third quarter of 2024. With a projected growth rate of 6-6.5% for the coming year, according to UOB, the focus will likely be on accelerating recovery across various sectors, particularly in the wake of challenges such as bad debts in the real estate market.
Key governmental strategies emphasize the importance of collaborative efforts among ministries, sectors, and localities. The Ministry of Finance intends to implement reforms aimed at tax relief and extending payment deadlines, which may aid businesses and individual citizens in navigating financial pressures. This proactive approach could invigorate local economies, particularly in underperforming areas.
Additionally, the State Bank of Vietnam’s role in managing interest rates and the currency will be critical. By harnessing operational tools to stabilize economic parameters in alignment with macroeconomic trends, the government seeks to create a conducive environment for investment and stimulate credit growth. Prioritizing lending to sectors vital for economic expansion will likely enhance the financial landscape.
Public-private partnerships (PPPs) are anticipated to play a pivotal role in advancing infrastructure projects, which in turn could facilitate broader economic initiatives. The government’s commitment to digital transformation, particularly through e-invoicing and enhancing budget management, signals a shift toward more transparent and efficient fiscal practices, paving the way for improved revenue collection.
In tandem, efforts to boost domestic market development and ensure energy and food security will remain paramount. The diversification of market opportunities, capitalizing on free trade agreements, and focusing on sustainable practices will bolster Vietnam’s resilience against global uncertainties.
Moreover, addressing social welfare and investing in cultural domains underlines the commitment to holistic growth. By promptly implementing policies aimed at assisting vulnerable populations, the government seeks not only to stimulate economic activity but also to reinforce social stability.
With the expectation of evolving legislative frameworks and a dedicated focus on reducing bureaucratic hurdles, Vietnam’s trajectory towards economic development seems promising. These measures, while designed for immediate impact, are set to shape the long-term economic landscape, opening doors to a more robust and agile economy.
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