Vietnam's Government Determined to Achieve 2024 Goals Amid Global Economic Turbulence

The Vietnamese government has reaffirmed its commitment to achieving its ambitious economic targets for 2024, despite a complex and unpredictable global landscape.

In Resolution No. 65/NQ-CP, issued following the regular Government meeting in April, the government outlined a comprehensive plan to drive growth, ensure macroeconomic stability, and enhance social welfare.

The plan, dubbed "5 Determinations, 5 Guarantees, 5 Accelerations," aims to address both domestic and international challenges. It focuses on bolstering key sectors like industry, agriculture, and services, while also prioritizing cultural and social development.

Vietnam's economy has shown remarkable resilience in the face of global headwinds. The macroeconomy remains stable, with controlled inflation and growth across all sectors.

The consumer price index (CPI) rose by a modest 0.07% month-on-month in April, and the currency market and exchange rates are being managed effectively. State budget revenue in the first four months of the year reached 43.1% of the yearly estimate, a 10.1% increase year-on-year.

The industrial sector saw a 6.3% year-on-year increase in April, while agriculture continues to develop steadily, ensuring national food security. The service sector is experiencing a strong recovery, with total retail sales of goods and consumer service revenue rising 9% year-on-year in April.

Navigating Global Uncertainties

However, the government acknowledges that significant challenges remain. The global economic outlook is uncertain, with geopolitical tensions, fierce competition between major powers, and persistent inflationary pressures in some economies.

Domestically, Vietnam faces external and internal limitations that could hinder its progress.

In response to these challenges, the government is calling for proactive and innovative measures across all sectors. It emphasizes the need for close coordination between ministries, agencies, and localities to ensure the effective implementation of its policies.

The government's plan outlines a multi-pronged approach. Close coordination of monetary and fiscal policies will be a focus to maintain macroeconomic stability, along with addressing issues such as bad debts and weak credit institutions.

The government aims to increase state budget revenue by improving tax collection and streamlining spending, while also prioritizing development investment and social security reforms.

Market stabilization is another key priority. The government will closely monitor market developments, taking measures to stabilize prices of essential goods like housing and food, and carefully assessing the impact of adjusting prices for state-controlled items.

The government plans to harness both traditional and new growth drivers. This includes promoting investment, consumption, and exports, as well as leveraging opportunities in digital transformation, green transformation, and the circular economy.

Ensuring a stable energy supply, particularly during peak demand periods, is also paramount. The government will take steps to prevent electricity shortages and expedite key energy projects.

Fostering a Favorable Business Environment

Furthermore, the government aims to improve the business environment by streamlining administrative procedures, reducing red tape, and promoting transparency.

Efforts will focus on resolving long-standing issues related to decentralization and business licensing, and enhancing the national digital transformation process.

Investing in Human Capital and Social Development

Recognizing the importance of human capital for the country's long-term development, the government will prioritize investments in education, healthcare, and environmental protection. It will also take measures to mitigate the impact of natural disasters.

Vietnam's ambitious "5 Determinations, 5 Guarantees, 5 Accelerations" plan reflects the government's determination to overcome challenges and achieve its 2024 economic and social goals.

While the road ahead may be fraught with uncertainties, Vietnam's strong economic fundamentals and proactive policy approach provide a solid foundation for continued growth and development.