Government eyes 7% GDP growth this year

The Government is striving to register an economic growth rate of 7% for the whole year, higher than the National Assembly (NA)’s target of 6-6.5%, according to a report from the Vietnam News Agency.

The State-run news agency quoted the latest update from the Ministry of Planning and Investment (MPI) as reporting that many economic indicators have surpassed the NA’s goals despite domestic and global unpredictable developments, including aftermaths from natural disasters.

According to the MPI,  Vietnam’s gross domestic product (GDP) growth is estimated at 6.8-7% in 2024, exceeding forecasts from international organizations.

The agro-forestry-fishery and service sectors have maintained sound growth momentum, while industrial production has bounce back robustly, serving as an important motive for the economic expansion. The average consumer price index (CPI) during January-August was 4.04%, and the figure is said to grow under 4.5% for the whole year.

Furthermore, the country also enjoyed rosy growth in trade value, retail sales and services revenue as well as production, business and investment activities.

Deputy Minister of Industry and Trade Tran Quoc Phuong described FDI attraction as the brightest spot in the Vietnamese economy, with total registered capital during the first eight months of the year rising 6.2% year-on-year to nearly $19.3 billion and disbursed amount increasing 3.4% to $13.55 billion, the highest since 2021, adding they are a vivid demonstration for the foreign investors’ confidence in the Vietnamese market, seeing it a safe and attractive destination.

The deputy minister also pointed out several factors that have driven the economic growth, including breakthroughs in the development of infrastructure in the areas of transport and digital transformation as well as the Government’s efforts to complete institutions and regulations.

However, Mr. Phuong said challenges lurk in the nation’s development such as macroeconomic risks, low credit growth and great pressure of maturing corporate bonds.

He highlighted that local firms have encountered difficulties due to increasing pressure from anti-dumping and origin fraud investigations and requirements related to environment, sustainable development and green transition.

For the remainder of the year, the Government will priorities promoting growth in tandem with maintaining stable macroeconomy, curb inflation and ensure major balances of the economy, he stressed, adding it will continue removing bottlenecks for enterprises by reviewing and completing institutions and policies, while pushing ahead the disbursement of public capital and the implementation of national target programs.