Prime Minister: Renewing traditional growth drivers and promoting new growth drivers

On the morning of June 1, concluding the regular Government meeting in May 2024, Prime Minister Pham Minh Chinh directed to continue to operate monetary policy proactively, flexibly, promptly and effectively; coordinate synchronously, harmoniously and closely with a reasonable, focused and key expansionary fiscal policy; strive to achieve the socio -economic development goals in 2024.

Prime Minister Pham Minh Chinh chairs the regular Government meeting in May 2024.

International organizations positively assess Vietnam's economy

At the meeting, the Government assessed that the socio-economic situation in May continued to recover positively, better than in April; in general, the first 5 months of 2024 achieved better results than the same period in 2023 in most areas.

The macro economy is basically stable, core inflation is under control, major balances are guaranteed. The average consumer price index (CPI) in the first 5 months increased by 4.03% over the same period. The state budget revenue in the first 5 months is estimated to reach 52.8% of the yearly estimate, up 14.8% over the same period. The total import-export turnover in the first 5 months increased by 16.6% over the same period; the trade surplus was 8.01 billion USD. The total registered foreign direct investment (FDI) capital in the first 5 months reached more than 11 billion USD, up 2% over the same period.

The industrial, agricultural and service sectors continued to change positively. The index of industrial production (IIP) in May is estimated to increase by 3.9% compared to the previous month and by 8.9% over the same period. Agricultural production is stable, the export turnover of coffee, rice, vegetables and fruits increased compared to the same period, national food security is guaranteed. Tourism has recovered strongly, in May, international visitors reached nearly 7.6 million, a total increase of 64.9% over the same period in 5 months. Many international organizations continue to positively assess and forecast optimistically about Vietnam's economic growth in 2024.

Social security work has been effectively implemented. Employment and livelihoods for people continue to be focused on and promoted. People's lives continue to be improved. Many unique cultural and artistic activities are organized. The education sector actively prepares for the high school graduation exam and university and college admissions in 2024. Medical work and public health care are focused on; proactively preventing epidemics and infectious diseases common in the hot season.

At the meeting, members of the Government discussed and assessed the situation, the positive and negative aspects, causes and lessons learned; direction and management work; limitations that need to be focused on overcoming; and proposed tasks for June and the coming time... In particular, delegates proposed solutions to curb inflation because currently, the CPI index is quite high; solutions, especially monetary policy, fiscal policy appropriate to the situation; continue to implement solutions to ensure major balances, especially in energy, especially during peak periods; need to resolve backlogs and problems in the process of investment preparation, site clearance, promote public investment disbursement; promptly issue Decrees guiding the implementation of laws related to land; promote the development of cultural industries and promote the image of the country, people and culture of Vietnam to the world...

Concluding the conference, the Prime Minister said that since the beginning of the year, all levels, sectors and localities have focused on proactively, resolutely and flexibly implementing tasks and solutions according to the Resolutions and Conclusions of the Central Committee, the Politburo, the Secretariat, the National Assembly, the Government and the directions of the Prime Minister and Deputy Prime Ministers.

The Government continues to promote the work of building and perfecting institutions, carefully preparing, ensuring the progress and quality of documents for the 7th Session of the 15th National Assembly, with 53 submissions and reports; developing and promulgating documents detailing the implementation of the Laws on Land, Housing, Real Estate Business, Credit Institutions, etc. In May, 14 Decrees, 6 Directives and 13 Official Dispatches of the Prime Minister were issued; the entire Planning of 6 socio-economic regions was approved; in the 5 months, 58 Decrees, 103 Resolutions of the Government and 529 decisions were issued.

In particular, the Government focuses on directing and operating many issues resolutely, appropriately and effectively, removing difficulties for production and business, promoting important national projects and works, developing social housing, renewing traditional growth drivers and focusing on promoting new growth drivers; flexibly handling outstanding issues and newly arising issues, such as: Nghi Son Refinery and Petrochemical Plant, O Mon power and gas project chain...; promoting growth; stabilizing the macro-economy; cutting and simplifying administrative procedures; reforming salary policy...

The Prime Minister especially commended state-owned enterprises such as the National Oil and Gas Group (PVN), Electricity Group (EVN), Vietnam Railways Corporation (VNR), and Vietnam Airports Corporation (ACV) for overcoming difficulties, innovating leadership and management thinking, restructuring, overcoming challenges and achieving many new achievements.

Reviewing 10 highlights of socio-economic development results in May and the first 5 months of 2024, Prime Minister Pham Minh Chinh said that many international organizations and experts continue to highly appreciate the results and prospects of Vietnam's economy. In particular, the Asian Development Bank, Standard Chartered Bank, and HSBC forecast Vietnam's GDP growth in 2024 at about 6%, among the top 5 fastest growing countries in Asia. The International Monetary Fund assessed Vietnam as the only Southeast Asian representative in the top 10 with a forecast growth of 6.4% in the 2024-2029 period. The business environment ranking increased by 12 places; the global innovation index ranking increased by 2 places; the human development index (HDI) increased by 8 places; the happiness index in 2024 increased by 11 places...

"The socio-economic situation in May and the first five months of 2024 continued to trend positively, with many areas achieving higher results in May than in April and the first five months overall better than the same period in 2023. This result is thanks to the close leadership and direction of the Central Committee, the Politburo, the Secretariat, headed by General Secretary Nguyen Phu Trong, the close and active coordination and accompaniment of the National Assembly and agencies in the political system; the participation and support of the people and businesses; the cooperation and assistance of international friends; especially the drastic participation, close and focused direction of the Government, all levels, sectors and localities," the Prime Minister affirmed.

Proactive, flexible, timely and effective monetary policy management

Pointing out a number of shortcomings, limitations, difficulties and challenges, such as: pressure to control inflation, exchange rates, and gold market management; production and business in a number of fields facing many difficulties; access to credit capital is still difficult; industrial production, some service sectors, purchasing power is recovering but still slow; the issue of ensuring electricity, water, and gasoline supply needs to continue to be directed resolutely and regularly; natural disasters, epidemics, heat waves, and severe droughts in many places; cybercrime and information security are still complicated..., the Prime Minister pointed out a number of causes, lessons learned and gave 5 viewpoints to guide direction and management in the coming time.

Regarding the main tasks and solutions in June and the coming time, the Prime Minister requested to continue to prepare well for the explanation and question-and-answer session of the 7th session of the National Assembly; urgently complete the dossier on 5 Resolutions submitted to the National Assembly; closely coordinate in explaining and completing dossiers and documents, ensuring quality and progress.

In macroeconomic management, the Prime Minister directed to continue to operate monetary policy proactively, flexibly, promptly and effectively; coordinate synchronously, harmoniously and closely with a reasonable, focused and key expansionary fiscal policy; facilitate access to credit capital for businesses and people; strive for credit growth in the first 6 months of 2024 of about 5%, for the whole year of about 15%; continue to reduce lending interest rates by 1-2%; note that the State Bank and the Ministry of Construction must immediately implement specific solutions to promote disbursement of the 120 trillion VND loan package for social housing.

The Government, ministries, branches and localities must resolutely and immediately implement solutions to stabilize the gold market according to regulations; strive to increase revenue and save State budget expenditures; resolutely implement digital transformation and apply electronic invoices in revenue management; thoroughly save regular expenditures; soon have a plan to mobilize an additional 100 trillion VND in government bonds for strategic infrastructure projects; continue to exempt and reduce taxes, fees, charges and land use fees to remove difficulties for production and business activities; have solutions to stabilize the market and prices, especially for gasoline, oil, essential goods, housing and food.

The Prime Minister requested to focus on renewing traditional growth drivers and strongly promoting new growth drivers. In particular, promoting the implementation of public investment projects; promoting private investment; strengthening public-private cooperation; selectively attracting FDI; consolidating traditional markets, expanding new markets; promoting domestic consumption stimulus, promotions, e-commerce, and cashless payments. In addition, there must be specific and effective mechanisms and policies to strongly promote new growth drivers, especially in three areas: institutions, mechanisms, and policies; regional economic development, regional and urban linkages; digital transformation, green transformation, circular economy, sharing economy, knowledge economy, new industries and fields such as semiconductor chips, AI, etc.

The Head of the Government directed to resolutely further promote the disbursement of public investment capital and 3 National Target Programs, with the continued promotion of the activities of 5 Working Groups of the Prime Minister and 26 Working Groups of Government members; early allocation of the remaining 29.1 trillion VND of public investment capital; reporting to the National Assembly for permission to proactively adjust the capital plan from places that have not been allocated or are slow to disburse to places that are fast disbursing and need additional capital; striving to disburse over 95% of the assigned plan; promptly handling difficulties and obstacles, speeding up the progress of important and key national infrastructure projects.

Directing the focus on strongly developing key industries and fields, the Prime Minister requested to focus on removing difficulties, promoting the manufacturing and processing industry, and supporting industries; speeding up the progress of large-scale, high-tech projects with strong spread; ensuring adequate supply of electricity and gasoline in all situations; urgently submitting for promulgation 3 Decrees on: direct electricity trading mechanism, on self-produced and self-consumed rooftop solar power and on the mechanism for developing electricity projects using natural gas and LNG.

In agriculture, take advantage of opportunities to export agricultural products; promptly remove the IUU "yellow card"; regulate and ensure enough water for agriculture, electricity production, and people's daily life; effectively organize and implement forest fire prevention and control with the "4 on-site" motto. Regarding services and tourism, strongly develop service industries with potential and advantages, apply high technology; reduce transportation and logistics costs; promote tourism attraction, strengthen price management, service quality, especially in the upcoming summer tourist season.

The Prime Minister noted the need to continue to resolve outstanding and long-standing issues such as: handling weak commercial banks, Phuong Nam Pulp Mill, Dung Quat Shipbuilding Company, Vietnam-China Steel Mill, Thai Nguyen Steel Mill Phase 2 and the Bach Mai Hospital and Viet Duc Hospital Phase 2 projects in Ha Nam.

Ministries, branches, agencies and localities must focus on perfecting institutions and laws, reforming administrative procedures, promoting national digital transformation; focusing on the fields of culture, society and environment; ensuring social security and people's lives; preparing for salary reform according to the Resolutions of the Central Committee and the National Assembly on the principles of ensuring fairness, equality, harmony and stability, with reasonable salary scales, basic salaries and specific policies with a roadmap; strengthening national defense and security; ensuring security and order, preventing crime; preventing and combating corruption and negativity; carefully, substantially and effectively implementing foreign affairs activities of senior leaders; quickly concretizing and effectively exploiting international treaties and agreements; strengthening information and communication work, creating social consensus; actively implementing the tasks of the Socio-Economic Subcommittee of the 14th Party Congress, ensuring progress and quality; launching a public hygiene emulation movement; organize a conference on cement consumption and social housing development...

Assigning specific tasks to each ministry, sector, and locality, Prime Minister Pham Minh Chinh requested Government members and leaders of ministries and sectors to work sincerely, substantially, and wholeheartedly to complete the tasks and socio-economic development goals in 2024 and the following years.

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