Production and business improved in May, so the economy may grow more positively in the second quarter, according to the Ministry of Planning and Investment.
Reporting to the Government on the socio-economic situation at today's regular meeting, Minister of Planning and Investment Nguyen Chi Dung said that production and business in May improved. The index of industrial production (IIP) increased by 2.2% compared to the previous month, of which the processing and manufacturing industry is estimated to increase by 2.9%.
Total retail sales of goods and consumer services revenue is estimated to increase by 11.5% over the same period in 2022 and by 12.6% in the first 5 months. The average consumer price index (CPI) in the first 5 months increased by 3.55% over the same period.
State budget revenue in the first 5 months reached 48% of the estimate, of which domestic revenue reached more than 48% of the estimate. The trade balance in the first 5 months is estimated to have a trade surplus of nearly 10 billion USD. Newly registered foreign direct investment (FDI) reached nearly 2 billion USD, 2.2 times higher than the same period last year.
These signals, according to the Ministry of Planning and Investment, show that economic growth may be more positive in the second quarter.
According to the ministry, international organizations continue to highly appreciate Vietnam's economic growth prospects. For example, the Organization for Economic Cooperation and Development (OECD) forecasts Vietnam's economy to grow at 6.5% this year and 6.6% in 2024.
ADB forecasts GDP to reach 6.5% this year and increase to 6.8% next year. Meanwhile, IMF forecasts Vietnam's economy to grow 5.8% and 6.9% in 2023-2024, respectively, among the leading countries in Asia.
In the coming time, Vietnam has many prospects to improve its growth rate through promoting public investment, consumption, tourism; green transformation, and taking advantage of the trend of shifting foreign investment flows.
Minister of Planning and Investment Nguyen Chi Dung. Photo: VGP
However, the economy still faces many risks and complex fluctuations . According to Minister of Planning and Investment Nguyen Chi Dung, production - business, industrial production and export still face many difficulties.
Specifically, the index of industrial production (IIP) for the whole industry in the first 5 months decreased by 2% compared to the same period last year (in the same period in 2022, it increased by 8.1%), continuing the downward trend since the beginning of the year. In particular, the IIP of the processing and manufacturing industry decreased by 2.5% (in the same period in 2022, it increased by 8.9%). Some key industries, such as textiles, telephones, electronics, wood processing, and automobiles, continued to decrease.
Social investment and foreign investment attraction have shown signs of recovery, but are still slow. Import and export turnover of goods recovered slightly in May, but the cumulative value for the first 5 months still decreased by nearly 15% compared to the same period last year.
Imports of capital goods in the first five months decreased by 18.2% compared to the same period last year, showing that domestic demand for production inputs continues to slow down.
In 5 months, more than 88,000 units withdrew from the market, an increase of 22.6% over the same period, but there were also about 95,000 businesses entering and re-entering the market, showing positive signs.
"Current business and economic issues are very different from the 2008-2013 period," the Ministry of Planning and Investment commented.
The three biggest difficulties are cash flow, access to loans, market and administrative procedures. Many solutions to overcome difficulties have been proposed by the Government, but the Ministry of Planning and Investment believes that comprehensive and synchronous solutions are needed from all levels, sectors and localities, especially coordination between fiscal, monetary and trade policies.
Therefore, the Ministry of Planning and Investment has proposed key solutions, including focusing on monitoring the world situation, removing difficulties and obstacles, and supporting businesses and people.
The Ministry of Finance should strictly manage revenue sources and thoroughly save expenditures; promptly propose fiscal policies, reduce taxes and fees, extend the deadline for paying special consumption tax and registration fees, speed up VAT refunds and facilitate import and export procedures. The Ministry should also propose feasible solutions to completely resolve the problems and limitations of the corporate bond market.
The State Bank regulates and reduces interest rates; stabilizes the foreign exchange market and exchange rates; and reviews credit packages with timely and favorable lending conditions.
The Ministry of Planning and Investment reviews regulations on business conditions and specialized inspections, and makes specific recommendations on plans to amend, replace, abolish, and modify mechanisms and policies to attract FDI.
Source link
Comment (0)