Promoting growth, stabilizing the macro economy, and controlling inflation

(MPI) - Above is the content of the meeting of the Government Standing Committee with relevant ministries and branches chaired by Prime Minister Pham Minh Chinh. Minister of Planning and Investment Nguyen Chi Dung attended and spoke at the meeting.

The purpose of the meeting is to review and grasp the situation, propose proactive, positive, early and remote solutions to ensure macroeconomic stability, control inflation and promote economic growth.

Minister Nguyen Chi Dung speaks at the meeting. Photo: Chinhphu.vn

At the meeting, delegates assessed that after 5 months of 2024, the world situation continued to develop in a complicated and unpredictable manner. The world economy, especially the major economies and those with economic relations with Vietnam, was recovering, but slowly and with many difficulties, significantly affecting the Vietnamese economic situation; while domestically, the economy still had internal problems.

The Government and the Prime Minister closely followed the situation, directed and operated decisively, closely, promptly, correctly, accurately and effectively. Therefore, Vietnam's macro-economy continued to be stable, core inflation was controlled, major balances were ensured; public debt, government debt, and foreign debt were within the allowable threshold; many international institutions were optimistic and forecasted that Vietnam's GDP growth in 2024 would reach over 6%.

Delegates said that in the coming time, the macro economy and inflation will continue to be under pressure due to complicated and unpredictable developments in the world; policy adjustments by major economies having economic relations with Vietnam; as well as developments in the currency market, foreign exchange, gold prices, prices of goods in the domestic market, etc. Therefore, solutions and great efforts from all levels and sectors are needed to achieve the set goals.

Concluding the meeting, Prime Minister Pham Minh Chinh highly appreciated the opinions and said that there are more difficulties and challenges than opportunities and advantages, but with appropriate management, we are determined to successfully implement the Resolutions and Conclusions of the Central Committee, the National Assembly, and the Government on socio-economic development in 2024, contributing to the successful implementation of the Resolution of the 13th National Party Congress and the 5-year socio-economic development plan for 2021-2025.

The target of striving for GDP growth in 2024 is to reach the upper limit, control inflation at the lower limit compared to the set target (the set target is GDP growth from 6-6.5% and inflation from 4-4.5%), stabilize the macro economy, ensure major balances of the economy; fiscal policies must be closely coordinated, effective, supportive, promote each other, control budget deficit, public debt, government debt, foreign debt according to the Resolution of the 13th National Party Congress, the Central Resolutions, and the Resolution of the National Assembly.

The Prime Minister thoroughly grasped the spirit of proactively attacking and defending early, from afar, from the starting point, from the grassroots; "only discussing action, not retreating"; not being perfectionist, not hasty, not operating jerkily but being flexible, gentle, supple, and effective; maintaining courage, calmness, not being negligent, subjective, or losing vigilance, but also not panicking, pessimistic, or fearful; responding to policies promptly and flexibly, with feasible measures, promoting the spirit of being proactive, positive, innovative, creative, daring to think, daring to do; coordinating synchronously, removing all difficulties and bottlenecks, working with focus, key points, completing each task thoroughly; communication to create new momentum, new confidence, motivation, new victories...

Regarding some specific tasks, the Prime Minister stated that, with the viewpoint that institutions, mechanisms and policies are also resources, a Steering Committee will soon be established to review legal problems, headed by the Prime Minister, and requested ministers and heads of ministerial-level agencies to continue reviewing and perfecting institutions, especially regulations related to public investment, public-private partnership, budget, tax, etc., on that basis, to propose the issuance of a legal document to amend many laws. Urgently summarize specific policies and mechanisms. Focus on administrative reform and improve the investment and business environment.

Overview of the meeting. Photo: Chinhphu.vn

To boost growth, the head of the Government requested ministries and branches to continue to operate monetary policy proactively, flexibly, closely following the situation, promptly and effectively, using reasonable and effective tools; remove difficulties for production and business, create favorable conditions for people and businesses to access credit capital better, reduce lending interest rates by 1-2%, in which promoting the role of 5 state-owned commercial banks; credit must focus on growth drivers; the State Bank and the Ministry of Construction review and carefully assess the reasons for slow disbursement to have appropriate solutions to promote the 120,000 billion VND credit package for social housing development.

Implement a reasonable, focused and key expansionary fiscal policy; continue to reduce fees, charges, input fees, and compliance costs to support businesses (in 2023, taxes, land rents, fees, charges, etc. were reduced by about VND 200,000 billion); promote revenue growth, especially through electronic tax collection, and thoroughly save expenses. Effectively resolve issues related to the issuance of individual bonds. Continue efforts to upgrade the stock market.

Along with that, further promote the disbursement of public investment capital, 3 National Target Programs, promote the role of 5 Working Groups of the Prime Minister and 26 Working Groups of Government members; report to the National Assembly to allow the Government to proactively adjust capital from places with slow disbursement to places with demand and good performance; speed up the progress of important and key national transport infrastructure projects, social infrastructure, health care, education; soon have a plan to coordinate and completely resolve the problem of common filling materials for infrastructure projects; promote investment of large corporations; focus on removing difficulties and legal problems regarding ODA, including amending relevant decrees in a shortened form.

Focus on renewing traditional growth drivers (investment, export, consumption) and strongly promoting new growth drivers such as regional connectivity, digital economy, green economy, circular economy, knowledge economy, sharing economy, innovation, new industries and fields such as semiconductor chips, artificial intelligence.

Focus on developing key sectors and fields (industry, agriculture, services); make the most of signed free trade agreements; promote agricultural exports, while making efforts to soon remove the "IUU yellow card"; and promote tourist attraction.

Regarding specific tasks and solutions to control inflation, the Prime Minister requested drastic implementation of solutions to stabilize market prices; abundant supply of goods, avoiding shortages; increasing publicity, transparency, monitoring price declaration and price posting according to regulations; not increasing prices of goods and services unreasonably. Deputy Prime Minister Le Minh Khai continued to direct price management work.

The Prime Minister noted a number of specific tasks that need to be focused on in the coming time to ensure abundant food and diversify supply sources. Ensure adequate electricity supply, definitely complete the 500kV line 3 Quang Trach - Pho Noi before June 30, 2024, mobilize and coordinate power sources, effectively exploit hydropower plants to serve production, business and consumption needs./.

Tung Linh

Ministry of Planning and Investment

Source: https://www.mpi.gov.vn/portal/Pages/2024-6-10/Vua-thuc-day-tang-truong-vua-on-dinh-kinh-te-vi-mo161eh6.aspx