Macroeconomic stability key to stronger growth, says PM

VOV.VN - Prime Minister Nguyen Xuan Phuc has requested that the nation’s various ministries, agencies, and localities make greater efforts to maintain macroeconomic stability in the post novel coronavirus (COVID-19) period, paving the way for greater socio-economic development.

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PM Nguyen Xuan Phuc says all resources must be pooled to sustain macroeconomic stability in the post COVID-19 period (Photo: VGP)
“In the face of difficulties nationally and globally, we should make clear that macroeconomic stability must be maintained to enhance the prestige of the Government’s performance, build on people and businesses’ trust, and attract investment, laying a firm foundation for socio-economic stability and development,” PM Phuc told leaders of localities during a meeting held in Hanoi on July 2.

The PM went on to compare the country’s growth engine to a “three-horse carriage” that is based on three vital pillars, namely investment, export, and consumption. In doing so, the Government leader called for all resources to be mobilised in an effort to pull all “three horses” in a bid to reach their highest possible level of growth.

He stressed the need to implement both effective and flexible management of macroeconomic policy instruments, especially with regard to fiscal and monetary policies, to stimulate stronger economic growth.

“Unlike most countries, we still have room to adjust fiscal and monetary policies.” PM Phuc stated, adding, “The problem is that in such a difficult context, is the maintenance of tight and prudent fiscal and monetary policies a right and appropriate decision, while many countries cut interest rates to 0% or pumped huge amounts of money into the market?”

PM Phuc expressed his dissatisfaction regarding the slow disbursement of public investment, estimated to amount to approximately VND700 trillion, equivalent to US$30 billion, this year. He therefore asked the Ministry of Planning and Investment, along with other ministries and localities, to propose specific solutions along with sanctions aimed at ensuring the correct amount is disbursed during the remainder of the year.

In addition, the PM requested that measures are taken to boost exports and stimulate domestic consumption demand within the context of the international market shrinking and domestic consumption declining. He also ordered relevant ministries and localities to accelerate their night-time economies, take steps to further streamline administrative procedures, and attract greater levels of both private and foreign direct investment (FDI).  

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PM Phuc chairs a meeting with leaders of provinces and cities to outline major tasks for the remaining six months of the year
The Government leader warned that Vietnam will lose out to regional rivals such as India, Indonesia, Thailand, and Malaysia unless it develops well-equipped infrastructure and other attractive conditions aimed at attracting FDI sources in the period following the COVID-19.

“Whatever you do, you must ensure Vietnam has a sound investment and business environment that is highly competitive both regionally and internationally,” said PM Phuc.

It was reported at the meeting that the country achieved an economic growth of 0.36% in the second quarter of this year, representing a 30-year record low, bringing six-month GDP growth to 1.81%.

Despite this, the first six months of the year saw the country enjoy a trade surplus of US$4 billion despite the enormous impact of the COVID-19 epidemic. Indeed, as many as 25,500 businesses resumed operations, an annual increase of 16.4%.