IMF Managing Director Kristalina Georgieva called "Vietnam a shining star" and predicted Vietnam's growth would be twice that of the global economy .
This information was stated by Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF) when meeting with Prime Minister Pham Minh Chinh , attending the expanded G7 Summit on May 20 in Hiroshima, Japan.
Ms. Kristalina Georgieva said that Vietnam is a bright star in the world economic sky with a positive growth rate in the context of a volatile global economy, many risks and the impact of the Covid-19 pandemic.
The IMF Managing Director added that implementing a firm and proactive monetary policy will help Vietnam maintain its growth momentum in the recent difficult context. The organization forecasts that Vietnam's economy will grow twice as fast as the global economy.
Prime Minister Pham Minh Chinh received IMF Managing Director Kristalina Georgieva on the occasion of the G7 Summit, May 20, in Hiroshima, Japan. Photo: Duong Giang
In its forecast released in February, the IMF said global economic growth this year would be around 2.9%, down 0.5 percentage points from last year.
Vietnam has a large economic openness, so this year's economic growth is seen to be affected by the global economic recession, tight monetary policies in developed countries, rising commodity prices and geopolitical fluctuations.
Many organizations and financial institutions have adjusted their forecasts for Vietnam’s GDP growth this year compared to their previous estimates. For example, the World Bank forecasts Vietnam’s GDP to grow by 6.3%; ADB forecasts 6.5%; Standard Chartered forecasts 6.5%. With these forecasts, Vietnam’s growth this year is more than twice as high as the global growth rate.
In the first four months of this year, GDP increased by 3.32% despite pressure from global economic fluctuations and internal factors of the economy.
In the context of the economy still facing difficulties, Prime Minister Pham Minh Chinh asked this organization to continue providing policy advice to the Vietnamese Government on economic management, perfecting fiscal and monetary tools, and restructuring finance and banking.
Ms. Georgieva affirmed that the IMF will advise on interest rates, monetary policy, and enhance the self-reliance of Vietnam's economy to respond to the crisis.
Last year, Vietnam's GDP grew by 8.02%, the highest level in 10 years. Per capita income reached 4,110 USD, and the national brand value was 431 billion USD.
Meeting with Secretary General of the Organization for Economic Cooperation and Development (OECD) Mathias Cormann today , Prime Minister Pham Minh Chinh asked the OECD to support the implementation and adaptation to new areas, such as global minimum tax , energy security, food security, climate change, and circular economy.
The OECD Secretary-General pledged that the organization will cooperate and support Vietnam in economic recovery and development, especially in building investment policies that are compatible with the global minimum tax. The Secretary-General hopes that Vietnam will join the Initiative for Carbon Reduction Methods (IFCMA) to contribute to global carbon reduction.
The global minimum tax is an agreement reached by G7 countries in June 2021 to combat tax avoidance by multinational corporations, expected to be applied in 2024. The minimum rate applied is 15%, for multinational enterprises with a total consolidated revenue of 750 million euros (equivalent to 800 million USD) or more in 2 of the 4 most recent consecutive years.
According to statistics from the Ministry of Finance, 1,015 FDI enterprises in Vietnam have parent companies subject to the tax. Of these, more than 70 enterprises are likely to be affected by this tax when it is applied in 2024. The Ministry of Finance is currently assigned to work with ministries and branches to study solutions to attract and support other than taxes to encourage existing investors and new projects if the above tax is applied.
Prime Minister Pham Minh Chinh is in Japan to attend the 49th G7 Summit from May 20-21.
This is the third time Vietnam has attended this conference and the second time at the invitation of Japan. This year, Vietnam is one of two Southeast Asian countries invited by Japan, along with Indonesia.
The 49th G7 Summit is part of the G7 Summit on May 19-22. The G7 includes advanced industrialized nations the United States, the United Kingdom, France, Germany, Japan, Canada and Italy, playing an important role in shaping and strengthening global governance and structure.
Vnexpress.net
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