The economy is gradually regaining growth momentum but it is difficult to change quickly in the short term, according to the Minister of Planning and Investment.
This comment was made by Mr. Nguyen Chi Dung, Minister of Planning and Investment, when reporting on the socio-economic development situation at the Government meeting on the morning of September 9.
GDP in the second quarter increased by 4.14%, 3.28 percentage points higher than the first quarter. Growth in the following quarter was higher than the previous quarter, according to Mr. Dung, helping to improve the GDP growth rate in the first half of this year, reaching 3.72% for the whole year.
Data from the Ministry of Planning and Investment shows that more than 14,000 new businesses were established in August, an increase of nearly 18% over the same period in 2022. In the first 8 months, the number of new businesses increased by 2.3% over the same period, with 103,700 businesses. The service sector grew rapidly. Total retail sales of goods and consumer service revenue in August increased by 7.6% over the same period last year.
At the business forum last month, economic and financial experts also commented that the economy showed signs of recovery thanks to consumption and public investment, but it would be difficult to return to pre-pandemic levels.
A recent HSBC report assessed that Vietnam's economy had a stable start in July, with Vietnam's external trade more stable. Exports continued to decline but only at a low level of 3.5% compared to the same period in 2022. FDI capital only reached 3% of GDP in the second quarter, on par with last year.
However, in his opening speech at the Government meeting today, Prime Minister Pham Minh Chinh acknowledged that the corporate bond and real estate markets have improved but are still facing difficulties. Key export sectors such as textiles and footwear have more orders, but industrial growth remains difficult. Credit growth is low, reaching only 5.16% by the end of August, and businesses' access to credit is not yet optimistic.
Minister Nguyen Chi Dung agreed that economic growth still faces major challenges. The economic and social situation in each quarter will improve compared to the previous quarter, and each month will be more positive than the previous month, but it is difficult to see rapid changes in the short term.
Minister of Planning and Investment Nguyen Chi Dung speaks at the Government meeting on September 9. Photo: VGP
The Minister of Planning and Investment added that administrative procedures have been cut down but in some areas they are still cumbersome and complicated, causing difficulties for people and businesses. Inadequacies in regulations on fire prevention and fighting and vehicle registration have not been thoroughly resolved.
Meanwhile, the situation of pushing, avoiding, fear of making mistakes, and fear of responsibility of a number of officials in performing public duties leads to stagnation and inefficiency in handling work, causing social resentment.
This year's growth target is 6.5%, and to achieve it, Mr. Nguyen Chi Dung proposed promoting the domestic market and taking full advantage of opportunities and recovery trends of markets to boost exports of key products, especially agricultural products.
He noted that all levels, sectors and localities need to attract large-scale FDI projects, remove administrative procedures that hinder businesses and speed up the handling of problems related to mechanisms, preferential policies, legal procedures and land to accelerate investment projects.
"It is necessary to decisively and tightly manage policies, both short-term and long-term, to seize time and take advantage of every opportunity to create breakthroughs within the economy," said Minister Nguyen Chi Dung.
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