Creating momentum for socio-economic acceleration.

Thanks to the efforts of the entire political system, the socio-economic picture in the first five months of 2024 showed many bright spots, creating momentum for accelerating towards the finish line.

Many positive aspects

According to the socio-economic report for the first five months of 2024 by the General Statistics Office ( Ministry of Planning and Investment ), the industrial production index increased by 6.8% compared to the same period last year. Nationwide, 64,800 new businesses were registered, with a total registered capital of over VND 601,200 billion and a total registered workforce of 426,400, representing a 4.5% increase in the number of businesses, a 5.7% increase in registered capital, and a 5% increase in the number of employees.

Total investment capital from the State budget of ministries, sectors, and localities is estimated to reach 26.6% of the annual plan, an increase of 5% compared to the same period last year. Foreign direct investment (FDI) into Vietnam reached US$8.25 billion, an increase of 7.8%; State budget revenue increased by 14.8%; total retail sales of goods and consumer service revenue increased by 8.7%...

In addition, the trade balance for goods is estimated to have a surplus of US$8.01 billion (compared to a surplus of US$10.2 billion in the same period last year), of which the domestic economic sector had a trade deficit of US$11.26 billion, while the foreign-invested sector (including crude oil) had a trade surplus of US$19.27 billion... Furthermore, the average consumer price index (CPI) for the first five months of 2024 increased by 4.03% compared to the same period; passenger transport increased by 6.1%; and freight transport increased by 11.4%...

In the social sector, favorable visa policies and tourism promotion programs in 2024 were intensified by localities, attracting a high number of international visitors to Vietnam. In the first five months of 2024, the number of international visitors to Vietnam reached nearly 7.6 million, an increase of 64.9% compared to the same period. Social security work has always been implemented promptly and effectively by all levels and sectors. Since the beginning of the year, the Government, ministries, sectors, and localities have provided nearly 18,500 tons of rice for famine relief to the people...

According to economic experts, 2024 is a breakthrough year in the 2021-2025 five-year economic plan. The Government, the Prime Minister, ministries, sectors, and localities have devoted all their efforts to achieving this goal. At the 7th session of the 15th National Assembly, National Assembly deputies also highly appreciated the achievements in socio-economic development in the first months of 2024, creating momentum for the economy to accelerate in 2024.

Aiming for GDP growth of 6-6.5%

Analyzing the socio-economic picture for the first five months of the year, Associate Professor Dr. Dinh Trong Thinh, an economic expert, stated that a series of important economic indicators set by the Government showed signs of improvement, achieving good growth compared to 2023 despite many remaining difficulties, making a significant contribution to the country's GDP. Compared to March and April 2024, the growth rate of these indicators in May remained stable.

Notably, the capital invested in foreign direct investment (FDI) projects during the first five months of this year continued to show positive signs. This indicates that foreign investors still have confidence in Vietnam's growth prospects in the medium and long term, despite existing difficulties. Investment capital is concentrated in provinces and cities with many advantages in attracting FDI (good infrastructure, stable human resources, efforts to reform administrative procedures and dynamism in investment promotion...) such as: Ba Ria - Vung Tau, Hanoi, Bac Ninh, Ho Chi Minh City, Dong Nai, Quang Ninh, Bac Giang, Hai Phong, Thai Nguyen, Hung Yen... showing that the economy is recovering rapidly.

Many economic experts believe that, from now until the end of the year, in order to achieve the 2024 GDP growth target of 6-6.5%, the Government and relevant ministries must continue to cut administrative procedures, reduce import-export and logistics costs to alleviate difficulties for businesses; and continue to support interest rate reductions to help businesses secure more export orders. Businesses want access to capital so that they have low capital costs and can maintain stable growth.

“The government needs to pay attention to and focus on removing obstacles and promoting growth in the five centrally-governed cities, as these are the leading engines of socio-economic development in their respective regions. It is necessary to boost domestic market demand, personal and household consumption; consider addressing the inadequacies in airfare prices to stimulate tourism and consumption; and continue to support businesses. In addition to government solutions, localities also need to work together to remove difficulties for businesses. In particular, Vietnam needs to prioritize promoting large-scale projects in the electricity sector to solve the electricity supply problem; and pay attention to investing in waste treatment infrastructure for sustainable development in the future…”, suggested Associate Professor Bui Quang Binh (University of Economics - Da Nang University).

According to Minh Phuong - The Doan/News Report

Source: https://doanhnghiepvn.vn/kinh-te/tao-da-cho-kinh-te-xa-hoi-but-toc/20240602111451235