Investors monitor the stock market. (Photo by DANG ANH)
Opportunities outweigh challenges.
According to Deputy Minister of Planning and Investment Tran Quoc Phuong, 2024 is a pivotal year in the 2021-2025 Five-Year Plan. Therefore, this is a particularly important time for successfully implementing the Resolution of the 13th National Congress of the Party, requiring all levels and sectors to seize every opportunity to promote growth.
To achieve the 2024 economic targets, it is necessary to continue strongly promoting and renewing traditional drivers of investment, consumption, and exports; while simultaneously supplementing and leveraging opportunities from new growth drivers and economic models, such as digital transformation, green transformation, circular economy, sharing economy, and emerging industries like semiconductor chip manufacturing and renewable energy.
In light of the difficulties faced by the business community, Deputy Minister Tran Quoc Phuong stated that in the coming period, it is necessary to implement decisive, synchronized, and effective solutions and policies, ensuring harmony in handling short-term situations and promoting development in the medium and long term, especially in removing obstacles and supporting the development of domestic businesses.
"As the strategic advisory body to the Party and Government on macroeconomic management, the Ministry of Planning and Investment will continue to research, advise, and propose to the Government the improvement of institutions and the development of mechanisms and policies to promote growth, maintain macroeconomic stability, control inflation, and ensure the major balances of the economy," Deputy Minister Tran Quoc Phuong added.
Amidst the global economic recovery trend, which remains fraught with risks, Dr. Can Van Luc, Chief Economist of the Vietnam Investment and Development Bank, believes that the growth drivers of the Vietnamese economy are recovering, albeit unevenly.
The economic recovery is reflected in indicators that demonstrate a solid macroeconomic foundation and improved risk management; fiscal risks (public debt, foreign debt, government debt repayment obligations, etc.) are at a moderate level, and there is still room for further fiscal policy support in the future, helping to alleviate pressure on monetary policy. Inflation, although trending upwards, remains under control. Similarly, interest rates have decreased, exchange rates and bad debts are rising but remain manageable; the stock market is performing well thanks to expectations of market upgrades, and the real estate sector is gradually recovering…
Institutional highlights
Regarding the economic growth outlook for the remaining months of 2024 and 2025, Dr. Can Van Luc believes that the 6% growth target for this year is achievable, and the economic recovery trend will be stronger in 2025. The drivers of growth will continue to come from public investment, exports, and consumption, along with new growth drivers from the development of the digital economy, green economy, circular economy, and energy transition. Dr. Can Van Luc also noted that trade and investment activities will continue to be more vibrant thanks to the accelerated international integration process through the upgrading of strategic partnerships with the US, Japan, Australia, and others.
From the legislative perspective, Mr. Phan Duc Hieu, Standing Member of the National Assembly's Economic Committee, advised investors and businesses to pay attention to institutional and market changes in the current context.
Meanwhile, institutionally, the Government is proposing to expedite the effective date of four important laws, including the Land Law, the Housing Law, the Real Estate Business Law, and the Law on Credit Institutions. The early implementation of these laws is expected to contribute to the recovery of the real estate market, corporate bonds, and to a healthier and more sustainable financial and banking sector. Thus, new rules of the game have been established; businesses need to carefully study and develop strategies that align with these four laws, as they may restructure the market for related industries and businesses.
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