Vietnam moves to revise GDP growth scenario for 2024, sticks to 7% rate

Two revised scenarios for growth in 2024

The first scenario would see Vietnam record the 6.5% rate for the whole year, and to do so the national economy would expand by 6.5% in the third quarter before rising to 6.6% in the fourth quarter of the year.

In the second scenario, the local economy would grow by 7.4% in the third quarter and 7.6% in the fourth quarter, thereby helping to raise the yearly rate to 7%.

Presenting a report at a monthly Government meeting held on July 6 in Hanoi, MPI Minister Nguyen Chi Dung proposed that the Government stick to the 6.5% to 7% growth plan, striving to secure the 7% rate by the year’s end.

The MPI has grounds to believe that the national economy will be able to achieve the highest rate, said Dung.

According to the Minister, major economic industries have maintained positive growth momentum; State and private investments have recovered at a faster rate; foreign direct investment (FDI) has maintained its upward trajectory’ exports have recovered considerably; and tourism and consumption have grown faster.

Furthermore, he outlined that a number of new policies and legal regulations are about to take effect, along with drastic actions and greater efforts made by the Government, ministries, agencies, and localities.

If economic hubs such as Hanoi, Ho Chi Minh City, Binh Duong, and Da Nang obtain higher growth then they would be able to help the country’s growth exceed 6.5%, said the Minister.

To meet the highest target, the Minister put forward a number of major tasks and solutions, including materialising recently adopted laws such as the Land Law, Real Estate Business Law, and Housing Law into life.

He stressed the need to renew traditional growth drivers such as investment, consumption, and export; and  fully tap into new growth drivers such as digital transformation and green transformation, alongside accelerating administrative reform and improving the business and investment environment.

He also proposed that the country seek to solidify international treaties and agreements of senior leaders as a way of maximising opportunities for greater growth and further development.

PM approves of 6.5% - 7% growth rate

After considering various opinions, Prime Minister Pham Minh Chinh, who chaired the meeting, suggested striving to secure the growth rate of between 6.5% and 7% and control inflation below 4.5% in the third quarter of the year.

The crux of the matter is the ability to stabilise the macro economy; guarantee major balances; and control national monetary and financial security; along with maintaining political stability, national defence, security, social order and safety, and effectively integrating into the global economy, stated the PM.

To this end, he requested regulating exchange rates and interest rates appropriately; tightening financial and State budget disciplines; and effectively promoting real estate, corporate bond, and stock markets.

The head of the Government asked relevant ministries, agencies, and localities to strengthen price management, especially for food, petrol and oil; and devise an appropriate roadmap to hike prices of State-managed commodities in order to avoid increasing prices of goods and services at the same time.

He asked them to ensure an adequate supply of electricity, petrol, and oil for the purposes of production, business, and consumption, further promote the disbursement of public investment capital, renew traditional growth drivers, and strongly boost new growth drivers.

The PM also reminded the designated agencies to pay close attention to the fields of socio-cultural affairs and the environment, ensure social security, and work to improve people’s lives.