Vietnam Prioritizes Economic Growth in 2024, Striving to Overcome Challenges

After a positive start in the first quarter of 2024, Vietnam's government is doubling down on its commitment to economic growth.

Acknowledging ongoing challenges within the domestic and global landscape, a recent government resolution outlined key priorities and specific measures to achieve its targets for the year.

Positive Growth Momentum

The government's resolution 44/NQ-CP, issued after the regular 1st quarter cabinet meeting, highlights an encouraging start for the Vietnamese economy in the first quarter of 2024.

Gross domestic product (GDP) grew by 5.66% year-on-year, exceeding the government's earlier projections and achieving the highest first-quarter increase since 2020.

Other key indicators also showed positive trends, including a controlled inflation rate, stable currency market, and continued foreign currency demand. These, coupled with a 15.5% increase in import-export turnover and a trade surplus of $8.08 billion, signal a solid foundation for growth.

Addressing Challenges, Maintaining Stability

While the initial indicators are optimistic, Vietnam's government acknowledges that significant challenges need addressing. To overcome these hurdles and maintain economic stability, the government resolution outlines a series of key strategies.

These include a focus on macroeconomic stability with measures aimed at managing inflation and ensuring major economic balances. The government is also directing credit institutions to reduce lending interest rates and develop strategies to improve the economy's overall access to capital.

To maintain fiscal discipline, Vietnam will look to expand revenue sources, combat tax evasion (particularly in the online retail and food services sectors), and thoroughly manage expenditures.

The government is also carefully monitoring market fluctuations and will make necessary adjustments to stabilize prices, with a focus on essential goods like gasoline, oil, and food.

Driving Sustainable Growth

In addition to addressing immediate challenges, the government's economic strategy for 2024 places emphasis on sustainable growth drivers. Vietnam seeks to increase domestic demand, utilizing trade promotion programs and e-commerce platforms to boost its internal market.

Simultaneously, efforts are underway to accelerate exports by tapping into new markets, maximizing the effectiveness of trade agreements, and streamlining customs procedures to support businesses.

The government has also vowed to accelerate public investment disbursement, directing funds towards key infrastructure projects like the North-South Expressway and various strategically important transportation works.

This investment in infrastructure is seen as a way to improve connectivity, reduce bottlenecks, and bolster future growth potential.

Additional Strategic Objectives

The Vietnamese government has also outlined further priorities to bolster growth and stability in 2024, including attracting quality foreign direct investment (FDI) and promoting private and foreign investment more broadly.

To position the country in the rapidly changing global economy, focus is placed on digital transformation and developing the IT sector.

Additionally, tightening the management of the real estate and corporate bond markets aims to reduce potential risks and ensure long-term financial stability.

The government has also committed to continuing to simplify business procedures and cut red tape, aiming to foster a more conducive environment for both domestic and international enterprises.

Outlook

The Vietnamese government's proactive measures and commitment to policy adjustments are being met with optimism by international organizations that forecast continued economic growth for the country.

However, to ensure its ambitious goals for 2024 are met, Vietnam will need to maintain vigilance against potential headwinds. This includes both internal and external factors, such as global economic shifts, that could impact the nation's trajectory.

Successfully implementing its comprehensive development strategy will be crucial in achieving the robust and sustainable growth the country targets, experts say.