Vietnam’s economy sees gradual and positive changes: MPI

Many localities in key regions achieved a higher Gross Regional Domestic Product growth rate in the second quarter compared to the first.

Viet Nam News

Viet Nam News

         

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Minister of Planning and Investment Nguyễn Chí Dũng speaks at the teleconference between the Government and localities and the regular Cabinet meeting in Hà Nội on Tuesday. Photo baochinhphu.vn

July 5, 2023

HÀ NỘI – The Ministry of Planning and Investment has reported that Việt Nam’s socio-economic situation has been experiencing gradual and positive changes, with steady growth observed in several important indicators and indexes month by month.

This has contributed to the overall improvement in the first half of this year and set the stage for the upcoming months.

Minister of Planning and Investment Nguyễn Chí Dũng emphasised this during the teleconference between the Government and localities and the regular Cabinet meeting in Hà Nội on Tuesday.

Reports from the ministry showed that the Consumer Price Index (CPI) recorded an average increase of 3.29 per cent in the first six months compared to the same period last year, maintaining its downward trend. State budget revenue reached 54 per cent of the estimated target for the first half of the year. In June, the total import-export turnover continued to rise, showing a growth rate of approximately 3.6 per cent compared to the previous month. The trade surplus for the first six months was projected to reach US$12.25 billion, a significant increase compared to the $1.2 billion recorded during the same period last year.

Investment showed more positive signs, with the total invested capital in the second quarter increasing by 5.5 per cent compared to the same period of last year, surpassing the growth rate of 3.7 per cent in the first quarter. Overall, in the first six months, the total social investment capital was estimated to exceed VNĐ1.35 quadrillion, a 4.7 per cent increase compared to the same period.

Registered foreign investment in the second quarter reached nearly US$8 billion, a nearly 50 per cent increase compared to the first quarter. Disbursed capital for the first six months was estimated to be over $10 billion, reflecting a 0.5 per cent increase compared to the same period.

Notably, many localities in key dynamic regions achieved a higher Gross Regional Domestic Product (GRDP) growth rate in the second quarter compared to the first quarter as well as the national average.

For example, HCM City experienced a 5.9 per cent increase compared to a 1.1 per cent increase in the first quarter. Respectively, Bình Dương saw a 5.7 per cent increase compared to a 1.7 per cent increase; Đồng Nai recorded a 4.8 per cent increase compared to a 3.1 per cent increase; and Bắc Giang witnessed a 13.8 per cent increase compared to an 8.1 per cent increase.

However, Dũng acknowledged there were still significant difficulties and challenges, posing risks and pressure on the management of macroeconomic growth and stability. Meanwhile, domestic enterprises, especially small and medium-sized enterprises, remained weak after being heavily impacted by the COVID-19 pandemic.

“Therefore, it is necessary to have resolute and proactive measures to maximise the effectiveness of policies and resources supporting businesses and people. It is crucial to seize every opportunity and make use of time to recover and promote growth, as well as implement medium and long-term solutions such as green growth, digital economy, and a circular economy,” he said.

Based on the results of the second quarter and the first six months of this year, the Ministry of Planning and Investment has developed two scenarios for the third quarter.

In the first scenario, the annual growth rate was expected to reach 6 per cent; the growth rate for the third quarter would be 6.8 per cent, and the fourth quarter 9 per cent. The overall growth rate for the last six months of this year must reach 8 per cent.

In the second scenario, the annual growth rate was expected to reach 6.5 per cent; the growth rate for the third quarter and the fourth quarter would be 7.4 per cent and 10.3 per cent. The overall growth rate for the last six months of this year must reach 8.9 per cent.

Dũng said in the final months of the year, ministries, agencies, and localities needed to focus on implementing key tasks and effective management solutions.

They should closely monitor the domestic and international situation, proactively carry out their assigned functions and tasks, and provide proposals to the Government and the Prime Minister in cases beyond their jurisdiction.

Ministries, agencies, and localities should implement administrative procedure reforms, and promote a positive business investment environment and the application of digital technology in administrative management and procedures on electronic platforms.

They must address difficulties for businesses and stimulate domestic consumption growth and export growth.

They also needed to overcome difficulties and achieve sustainable development in the stock market, real estate market, corporate bonds, and labour market; and focus on the operation of the corporate bond market to turn it into an effective channel for mobilising medium and long-term capital for enterprises, he said. – VNS

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