Economic growth in 2024 will exceed the target set by the National Assembly

It is expected that in 2024, the socio-economic situation will achieve and exceed 14/15 targets, of which the GDP growth rate for the whole year is estimated at about 6.8 - 7%, exceeding the National Assembly's target of 6-6.5%.

On the morning of September 30, in Ho Chi Minh City, the National Assembly's Economic Committee held a plenary session to review the Report on the assessment of the implementation results of the 2024 Socio-Economic Development Plan and the draft Socio-Economic Development Plan for 2025.

Deputy Chairman of the National Assembly's Economic Committee, Nguyen Dinh Viet, speaks at the session. Photo: Le Quan

At the briefing session summarizing the socio-economic situation for the first eight months and estimates for the whole year of 2024, Deputy Minister of Planning and Investment Tran Quoc Phuong stated that, despite many unpredictable risks in the world and domestically during the first eight months of 2024, based on the results of the first eight months, it is projected that the socio-economic situation for the whole year of 2024 will achieve and surpass 14 out of 15 key targets, including achieving and surpassing all social targets.

As for the GDP growth rate for the whole year, it is estimated to reach about 6.8-7%, exceeding the target set by the National Assembly (6-6.5%) and exceeding the forecasts of international organizations, belonging to the group of few countries with high growth in the region and the world.

Analyzing the situation in more detail, Deputy Minister Tran Quoc Phuong stated that the GDP growth rate exceeding the target set by the National Assembly was due to the sustained growth in several sectors, such as the service sector continuing its growth trajectory, estimated at 7.0% for the whole year; the consumer price index (CPI) growth rate for the whole year estimated at below 4.5%; and state budget revenue estimated to increase by 10.1% compared to the projected figure…

In particular, FDI attraction was the brightest spot when registered FDI capital in 8 months reached nearly 19.3 billion USD, up 6.2% over the same period; realized FDI capital is estimated at 13.55 billion USD, up 3.4%, the highest since 2021.

In the field of infrastructure, there has been strong investment, with clear breakthroughs, especially in transport and electricity infrastructure. To date, 2,021 km of expressways have been completed and put into operation, opening up many new development spaces.

The government has launched a 500-day emulation campaign to complete 3,000 km of expressways by 2025. The 500kV Quang Trach - Pho Noi circuit 3 project, with a scale of nearly 1 billion USD, was inaugurated after more than 6 months of rapid construction. Infrastructure serving digital transformation, the development of digital government, digital economy, and digital society continues to be strongly promoted. In 2024, Vietnam's e-government development index increased by 15 ranks.

Regarding the improvement of institutions and laws, the government has directed efforts decisively, with a spirit of reform and innovation in thinking, approach, and methods, promoting decentralization and delegation of power. Since the beginning of the year, the Government has submitted 14 laws and 23 resolutions to the National Assembly for approval, and allowed the Land Law, Housing Law, and Real Estate Business Law to take effect early from August 1, 2024. Simultaneously, it has issued and directed the issuance of 121 detailed regulations and guidelines for implementation.

“The government continues to accelerate the restructuring of the economy, innovate the growth model, and improve the productivity, quality, and competitiveness of the economy. We have reviewed, evaluated, and proposed amendments to the Law on Public Investment in a spirit of breakthroughs and reforms to promote the disbursement of public investment capital and remove obstacles for production and business,” Deputy Minister Tran Quoc Phuong said at the conference.

The Deputy Minister of Planning and Investment speaks at the session. Photo: Le Quan

Despite achieving many positive results in the first eight months and expecting to exceed the targets set by the National Assembly for the whole year, Deputy Minister Tran Quoc Phuong noted that the socio-economic situation faces many difficulties and challenges, such as potential risks to macroeconomic stability, especially from external factors like inflation and exchange rates; difficulties in production and business activities; signs of slowing domestic purchasing power; and continued dependence of the trade surplus on the FDI sector…

Regarding the solutions to be implemented from now until the end of the year, Deputy Minister Tran Quoc Phuong said that priority will be given to promoting growth associated with maintaining macroeconomic stability, controlling inflation, striving for a GDP growth rate of about 7%, and completing all 15 main targets.

Continue to remove obstacles in accessing credit, focusing on production and business activities and priority sectors.

Continue reviewing and improving institutions, laws, mechanisms, and policies to remove difficulties for production and business; submit to the National Assembly for promulgation during the 8th session the draft laws (amendments) and draft laws amending multiple laws on investment, public investment, finance, state budget, public assets, etc.

Speaking at the meeting, Ms. Le Thi Lan, Deputy Head of the Social Committee, assessed the socio-economic situation report of the Ministry of Planning and Investment as quite comprehensive, assessing the overall situation and proposing solutions for implementation.

According to Ms. Lan, 2024 will have many difficulties and challenges, especially the impact of storm No. 3, but the expected targets being achieved and exceeded are very commendable.

However, Ms. Lan noted that several long-standing social issues remain unresolved, such as the increasing rate of infectious diseases among the population. She cited the example of Ho Chi Minh City, where the incidence of measles has increased eightfold compared to the previous year, and the continued overcrowding of hospitals at higher levels, along with the persistent problems of drug and medical supply shortages.

“This issue needs to be evaluated and clarified as to whether it is due to lack of budget or slow vaccination leading to an increase in the epidemic,” Ms. Lan said, suggesting a careful evaluation of this issue.

Chairman of the Economic Committee Vu Hong Thanh also assessed that, in the context of many difficulties both globally and domestically, the fact that 14 out of 15 targets have been met so far is a great effort by the Government. There are many bright spots in socio-economic management, with many economic indicators showing high growth, especially in attracting foreign investment.

Despite achieving many positive results, Chairman Vu Hong Thanh noted that while the export sector has grown well, it is primarily dependent on foreign businesses. The disbursement of public investment remains low, so solutions are needed to boost disbursement from now until the end of the year.

Receiving comments from National Assembly delegates, Deputy Minister Tran Quoc Phuong said that the Ministry of Planning and Investment will receive them to complete the report to submit to the Government and then to the National Assembly.

Speaking more about GDP growth, Deputy Minister Tran Quoc Phuong affirmed that this year, it will certainly exceed the target set by the National Assembly. If there were no impact from storm No. 3, the increase would be even higher.

Regarding the investment environment, the Deputy Minister stated that foreign investors have great confidence in Vietnam and consider it a safe and attractive destination.

Source: https://baodautu.vn/tang-truong-kinh-te-nam-2024-se-vuot-muc-tieu-quoc-hoi-de-ra-d226205.html