The steering should be smooth, without sudden jerks or abrupt braking.

The PMI has returned above the 50-point mark.

On February 1st, Prime Minister Pham Minh Chinh chaired the Government meeting for January - the first month of 2024.

According to the report, the socio-economic situation in January continued its positive recovery trend with many important and noteworthy results in various fields. The consumer price index (CPI) increased by 3.37% year-on-year (mainly due to the impact of planned increases in healthcare service prices and retail electricity prices).

State budget revenue reached 231,000 billion VND. Total import and export turnover reached nearly 64.22 billion USD, an increase of 37.7% compared to the same period last year, of which exports increased by 42%, imports increased by 33.3%, resulting in a trade surplus of 2.92 billion USD.

Notably, Vietnam's manufacturing Purchasing Managers' Index (PMI) returned above the 50-point mark in the first month of the year, rising to 50.3 points from 48.9 points in December 2023. This is the most significant increase since September 2022. The Industrial Production Index (IIP) increased by 18.3% year-on-year, with the manufacturing sector growing by 19.3%.

Government meeting in January - the first month of 2024 (Photo: VGP).

Disbursement of public investment capital in January is estimated at 2.58% of the plan, higher than the same period last year (1.81%). Registered FDI capital reached US$2.36 billion, an increase of 40.2%. Implemented FDI capital reached US$1.48 billion, an increase of 9.6% compared to the same period last year.

The number of newly established businesses increased in both quantity and registered capital compared to the same period last year, with a 24.8% increase in the number of businesses, a 52.8% increase in registered capital, and a 50.8% increase in the number of employees.

Although the socio-economic situation in January continued its positive recovery trend, in the concluding remarks of the meeting, Prime Minister Pham Minh Chinh frankly pointed out existing shortcomings and limitations, emphasizing the absolute need to avoid complacency and negligence, and to remain vigilant in the face of the situation.

Accordingly, macroeconomic stability, major balances, inflation, exchange rates, and bad debts pose potential risks. Many industries and services continue to face difficulties due to the ongoing impact of global market fluctuations. Tensions in the Red Sea have increased shipping costs to the US and EU, affecting Vietnam's import and export activities. Global consumption has not yet shown a clear recovery. Production and business activities remain challenging, with the potential for increased bad debts.

"Our country is a developing country, its economy is in transition, starting from a low base, with a modest scale, high openness, and limited resilience and competitiveness - even a small external fluctuation can have a major impact internally," the Prime Minister stated.

Regarding the guiding principles and direction for the coming period, the Prime Minister requested that the achievements and accumulated experience be built upon, that there be greater resilience, adherence to principles, perseverance, and steadfastness, while also being proactive, creative, innovative, and improving forecasting capabilities.

"We must have a firm grasp of the situation, conduct research, learn from global experiences, and develop solutions, steps, and roadmaps that are appropriate to our conditions and circumstances, without sudden abrupt changes or abrupt braking," the Prime Minister emphasized as a guiding principle for governance and management.

The Prime Minister also requested a high sense of responsibility, boldness in thinking and acting; improved coordination, especially in resolving inter-sectoral and inter-regional issues; and proactive reporting and proposing solutions to issues beyond their authority.

Disbursing public investment funds is a key political task.

Regarding the main tasks and solutions for February, the first quarter, and 2024, the Prime Minister continued to emphasize the need to maintain macroeconomic stability, control inflation, and ensure the major balances of the economy.

Strengthen traditional markets and expand into new markets (Middle East Africa, Latin America, Halal food market). Accelerate the disbursement of public investment capital and national target programs. Increase revenue and save on state budget expenditures (focus investment on large-scale development projects, salaries, and social security). Strictly control budget deficits, public debt, government debt, and national foreign debt.

Prime Minister Pham Minh Chinh delivers a directive speech at the meeting (Photo: VGP).

Focus on facilitating the attraction and disbursement of investment resources from the entire society. Decisively address obstacles and actively support the acceleration of investment project implementation. Strengthen the promotion and attraction of large-scale, high-tech FDI projects, especially in the processing, manufacturing, electronics, semiconductor, and hydrogen industries.

The Prime Minister particularly emphasized promoting new growth drivers. This includes finalizing planning and strongly promoting the six socio-economic regions.

Seize new opportunities, attract investment, develop industries and sectors undergoing digital transformation and green transformation… Attract green finance and preferential green credit resources to develop renewable energy and hydrogen new energy. Build and develop regional and international financial centers in Vietnam. Organize effective investment, trade, and tourism promotion activities.

The Prime Minister requested accelerated disbursement of public investment capital, the three national target programs, and the speedy approval of planning. "Identifying the disbursement of public investment capital as one of the key political tasks for 2024," the Prime Minister emphasized.

Accelerate the progress of large-scale, high-tech projects with strong spillover effects; proactively implement solutions to ensure energy security. Resolutely prevent electricity and fuel shortages (especially as 2024 is predicted to be a year of severe drought and water scarcity due to El Nino) .

Source: https://www.nguoiduatin.vn/thu-tuong-dieu-hanh-khong-duoc-giat-cuc-phanh-gap-a648397.html