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Vietnam optimistic about economic growth in 2024

Although the 6-6.5 percent economic growth target for 2024 is challenging, the Government is highly determined to implement strong measures and strategies to reach the set goal.

Government’s determination

On November 9, 2023, the National Assembly officially passed a Resolution on the Socioeconomic Development Plan for 2024. Accordingly, the gross domestic product (GDP) growth target for 2024 is 6-6.5 percent, a goal that requires great efforts and strong determination. Recent forecasts from many international institutions indicate that the global economy in 2024 still faces numerous unpredictable risks, especially the Russia-Ukraine and the Israel-Hamas conflicts, which show no signs of ending. Nevertheless, reputable domestic and international economic research organizations have provided different forecasts regarding the growth prospects of Vietnam’s economy in 2024. They all have confidence in the efforts and results that the economy will achieve in 2024.

The Vietnamese Government has demonstrated a high level of determination in implementing strong measures to achieve the set goals. Under the guidance and leadership of the Party, effective State management, the efficient functioning of the National Assembly, and the resolute governance of the Government and the Prime Minister, the spirit of listening and timely response has been emphasized. Many proactive solutions have been issued and implemented to promote economic development, ensure stability, and improve the livelihoods of the people.

In the first 11 months of 2023, the Government issued 78 decrees and 236 resolutions, while the Prime Minister issued 29 legal normative decisions, 1,575 individual decisions, and 28 instructions. Among them were practical measures such as reducing lending interest rates, stabilizing the foreign exchange market, accelerating disbursement of public investment capital, implementing credit support packages for sectors and industries, granting tax exemptions, reductions, and extensions, as well as providing assistance to businesses, and extending visas for tourists. Additionally, the Government actively and effectively engaged in various foreign activities and international integration efforts, especially in building and implementing high-level agreements. These efforts will contribute to creating the momentum for growth in 2024 and ensuing years.

It is worth noting that the Government has recently issued a Resolution on the key tasks and solutions to improve the business environment and enhance national competitiveness in 2024.

The Resolution’s general objective is to significantly improve the quality of the business environment, aiming to enhance Vietnam’s position in international rankings. It aims to create a healthy competitive environment, increase the number of newly established enterprises rapidly, reduce the proportion of temporarily suspended businesses, and increase the number of enterprises engaged in innovation, green transformation, and digital transformation. Additionally, it focuses on reducing input costs and compliance costs in investment and business activities, mitigating policy risks, strengthening trust, creating recovery footholds, and enhancing the resilience of businesses.

Making the most of opportunities

Regarding Vietnam’s economic prospects in 2024, Dr. Nguyen Lam Thanh, Vice Chairman of the National Assembly’s Council for Ethnic Affairs, said that the government’s decisive solutions, along with several resolutions of the National Assembly, have been issued in a timely manner. Vietnam’s economic indicators have shown signs of recovery. Specifically, the industrial sector has experienced good progress. The agricultural sector has created high export values, with rice, fruit and vegetables leading the way. There has been a notable progress in public investment disbursement.

Similarly, Tran Van Lam, Member of the National Assembly’s Finance and Budget Committee, holds a positive view on Vietnam’s economic prospects in 2024. According to him, the implementation of the economic recovery package in 2022-2023 will yield results in the period from 2024 onwards. Specifically, the mechanisms and policies implemented in 2023 will contribute to the economic recovery. Moreover, the strong disbursement of public investment at the end of 2023 and in 2024 will boost domestic consumption and create a ripple effect in the economy. Therefore, achieving a GDP growth rate of 6-6.5 percent is entirely feasible.

To realize the growth targets, Resolution 01/NQ-CP outlines the following main tasks and solutions for implementing the socioeconomic development plan and state budget estimate for 2024:

Firstly, prioritize promoting economic growth, maintaining macroeconomic stability, controlling inflation, and ensuring major balances.

Secondly, continue to review and improve institutions, laws, mechanisms, and policies related to enhancing the effectiveness and efficiency of law implementation; streamline and simplify administrative procedures and business regulations.

Thirdly, strengthen the construction and development of a comprehensive and modern strategic infrastructure system, especially highways, airports, seaports, urban infrastructure, regional infrastructure, digital infrastructure, social infrastructure, healthcare, and education.

The credit rating agency Fitch Ratings has forecast that Vietnam’s economic growth will reach 6.3 percent in 2024 and 7.0 percent in 2025.
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