Minister of Planning & Investment: The economy gradually regains growth momentum

According to the Minister of Planning and Investment of Vietnam, the economy is progressively regaining growth momentum, but short-term adjustments are difficult.

This remark was made by Mr. Nguyen Chi Dung, Minister of Planning and Investment, during his 9 September morning report on socioeconomic development to the Government.

The GDP increased by 4.14 percent in the second quarter, 3.28 percentage points more than in the first quarter. According to Mr. Dung, growth in the subsequent quarter was greater than growth in the previous quarter, contributing to an increase in the GDP growth rate for the first half of this year to 3.72 percent and an increase in the GDP growth rate for the entire year.

According to data from the Ministry of Planning and Investment, more than 14,000 new businesses were established in August, a nearly 18% increase compared to the same month in 2022. Overall, the number of newly founded businesses increased by 2.3% compared to the same period last year, reaching 103,700. The service sector developed swiftly. In August, total revenue from retail sales of products and consumer services increased 7.6% compared to the same month last year.

At the business forum last month, economic and financial experts also noted that the economy was showing signs of recovery due to consumption and public investment, but that it would be difficult to return to pre-covid levels.

According to a recent HSBC analysis, Vietnam's economy began July on a stable footing, and the nation's foreign trade was also more stable. Compared to the same period in 2022, exports continue to decline, but at a modest rate of 3.5%. Similar to the same period last year, new FDI attained 3% of GDP in the second quarter.

In his inaugural remarks at today's Government meeting, Prime Minister Pham Minh Chinh acknowledged that the corporate bond and real estate markets have flourished but still face challenges. Although critical export sectors such as textiles, clothing, and footwear have seen an increase in orders, industrial growth continues to be challenging. The growth of credit capital is modest, reaching only 5.16 percent by the end of August, and enterprise access to credit remains inadequate.

Minister Nguyen Chi Dung concurred that economic expansion will continue to face formidable obstacles. The economic and social situation will improve next quarter relative to the previous quarter, and next month will be better than the previous month, but it will not change drastically in the near future.

According to the Minister of Planning and Investment, administrative procedures have been streamlined, but in some areas they remain burdensome and convoluted, posing difficulties for individuals and businesses. Inadequacies in legislation governing fire prevention and combat and registration have not been adequately addressed.

In the meantime, the situation of pushing and avoiding responsibility, fear of making errors, and fear of responsibility among some public officials leads to stagnation and inefficiency in handling work, resulting in social frustration.

Mr. Nguyen Chi Dung proposed promoting the domestic market and capitalizing on market opportunities and recovery trends to promote the export of key product groups, particularly agricultural products, in order to meet this year's growth target of 6.5%.

He observed that all levels, sectors, and localities must attract large-scale FDI projects, eliminate administrative procedures that impede businesses, and expedite the resolution of issues relating to mechanisms, preferential policies, legal procedures, and premises in order to speed up investment projects.

Minister Nguyen Chi Dung stated, "It is necessary to rigorously and closely manage policies, both in the short and long term, to take advantage of time and every opportunity to create an economic breakthrough."

Source: VNExpress