Major economic growth drivers recovering, says investment minister
VOV.VN - Three key economic growth drivers – investment, domestic consumption and export – are showing signs of gathering steam after a period of sharp decline and stagnation, according to Minister of Planning and Investment Nguyen Chi Dung.
Positive signals
Addressing a regular monthly Government meeting for October held in Hanoi on November 4, Dung noted the national economy is gradually surmounting difficulties, with major macroeconomic balances being maintained and inflation being kept in check.
To verify his assessment, the Minister said the consumer price index (CPI) rose by 3.59% in October or 3.2% over 10 months; the monetary market was stabilised; and State budget revenue met 86.3% of the annual estimate.
Two-way trade turnover, exports, and imports in October also edged up by 5.6%, 5.9%, and 5.2%, respectively over the same period last year. Indeed the 10-month trade surplus hit a five-year record high of US$24.61 billion.
Total registered FDI capital over the 10-month period brought in more than US$25.76 billion, up 14.7% annually, while the disbursement of public investment capital reached 56.74% of the yearly plan, a figure 5.5% higher than the same period from last year.
Total retail sales of goods and consumer service revenue inched up by 7% in October, rising by 9.4% over 10 months.
Many key expressways and other infrastructure projects broke ground, while a number of projects were put into operation, yielding initial results.
The National Innovation Center was inaugurated at Hoa Lac Hi-Tech Park in Hanoi last month, attracting 41 investment funds that committed US$1.5 billion in investment over three years up to 2025.
The Vietnam International Innovation Expo 2023 was also held last month, attracting hundreds of large domestic and foreign technology enterprises.
Difficulties ahead
However, the Minister admitted that production and business activities are still encountering difficulties, with regard to market fluctuations, cash flow, and administrative procedures.
The difficulties faced by businesses and the economy have had a direct impact, putting greater pressure on macroeconomic management. A number of markets such as real estate and corporate bond markets are picking up but need to be closely monitored in order to promptly handle arising problems.
Furthermore, Vietnam has been enduring a dual impact of external factors, including unexpected market fluctuations, prolonged conflicts and strategic competition, as well as increasing economic, political, and social risks.
Though inflation cooled in many countries, it remains high, while food and energy prices continue to fluctuate sharply. Major economic powers such as the United States and the EU maintain tight monetary policies and high interest rates, while global supply chains are partially disrupted and global trade and investment are yet to recover to pre-pandemic levels.
What to do
In his speech, Prime Minister Pham Minh Chinh called for greater efforts to be made, including closely monitoring the situation, promptly dealing with changes, and making accurate forecasts, as a means of fulfilling tasks outlined for this year.
It can therefore be seen as imperative to continue to prioritise promoting growth and flexibly implementing financial and monetary policies, as well as other policies, associated with stabilising the macroeconomy, controlling inflation, and ensuring major balances, said the PM.
He particularly reminded ministries, agencies, and localities to facilitate the attraction and disbursement of investment resources, including private investment, foreign investment, and public-private co-operation, while drastically handling problems and accelerating the implementation of investment projects.
He requested that designated agencies fully tap into the local and overseas markets, with a primary focus on stimulating the year-end sales season, and at the same time expanding into new markets in the Middle East, Africa, and Latin America, along with speeding up negotiations towards signing free trade agreements with the United Arab Emirates, Brazil, and the southern common market (Mercosur).
The Government leader also stressed the need to iron out business snags; effectively unlock, mobilise and use resources; review and revise legal regulations; and drastically simplify administrative procedures and business conditions to support firms.
