Deputy Prime Minister Ho Duc Phoc said that public investment in 2025 will be approximately VND900,000 billion and will be the driving force, attracting other investment sources to create growth momentum.
On the afternoon of February 14, discussing in groups about the Supplementary Project on socio-economic development in 2025 with a growth target of 8% or more, many delegates spent time analyzing solutions to achieve this goal.
Carefully consider increasing revenue, deficit spending, and public debt
Looking back at the growth figures over the past period, Quang Tri Province Acting Chairman Ha Sy Dong said that in 1997, Vietnam achieved growth of over 8%. But after that period, Vietnam's growth rate slowed down. In 2022, Vietnam grew over 8%, but in 2023, growth was only 5%.
“It can be seen that the target of 8% growth in 2025 and then double-digit growth from 2026 is a huge challenge,” said a delegate from Quang Tri province.
The acting Chairman of the Quang Tri Provincial People's Committee said that it is difficult to predict whether Vietnam will be affected by the global trade war in 2025. However, if Vietnam is taxed by the US, it will be difficult to avoid a decline in growth.
According to Mr. Dong, if budget expenditure can be saved, it is good, but if it cannot be saved and revenue must be increased or there is a deficit or public debt, it needs to be carefully considered. Because budget collection is putting pressure on businesses and the tax and customs sectors. And deficit and public debt will cause interest rates to increase, making it more difficult for private businesses to borrow from banks.
“The above issues show that, ideally, Vietnam would not be caught up in the trade war and could save money to increase public investment, without having to increase revenue or borrow. Only then could the 8% growth target be achieved,” Mr. Dong emphasized.
According to him, increasing revenue, raising the deficit and the public debt ceiling are only solutions to cope when Vietnam is involved in a trade war, not a solution to achieve 8% growth.
From there, he suggested that the Government focus on saving to have resources for public investment, not overspending or borrowing when not necessary.
Standing member of the Committee for Science, Technology and Environment Tran Van Khai (Ha Nam delegation) proposed to establish a "Special Working Group on Public Investment Disbursement" under the Government to immediately remove obstacles. Along with that, the principle of "Fast disbursement - reward, slow disbursement - discipline" should be applied; any locality that is slow in disbursement will have its capital cut for the following year. At the same time, strict control of public investment should be strengthened to avoid waste and budget loss...
Mr. Khai also proposed cutting 50% of the time to process investment procedures by promoting digital transformation and applying AI in approval; immediately abolishing unnecessary business conditions that hinder businesses; and implementing the "National One-Stop Shop" mechanism for all investment projects.
Vietnam's growth is not only 8% but can exceed much more.
Deputy Prime Minister Ho Duc Phoc said that this is the content of the Government meeting and many solutions have been proposed.
In fact, he said that the growth rate of 7.09% in 2024 is very high, and there is still a lot of room and potential that has not been fully exploited.
According to the Deputy Prime Minister, the two most important issues affecting growth are investment and export.
Of which, public investment in 2025 is arranged to increase compared to 2024 by about 108,000 billion VND, plus the budget surplus of about 331,000 billion VND. After deducting for salary reform, there is about 158,000 billion left to supplement this year's investment.
“Thus, public investment in 2025 will be approximately VND900,000 billion. This is the driving force, attracting other investment sources to create growth momentum,” the Deputy Prime Minister affirmed.
In particular, the goal of completing an additional 1,000km of highway this year, to reach 5,000km of highway by 2030; implementing the North-South high-speed railway worth more than 67 billion USD; the railway from Ho Chi Minh City to Can Tho to connect with ports; 3 northern railway lines connecting with China... are factors that will promote investment and GDP growth.
Besides, the Deputy Prime Minister also said that private investment is also very important in promoting growth.
Regarding exports, Mr. Phuc said that it is necessary to maintain old markets such as the US, China, and Europe, while at the same time expanding new markets to promote production and bring Vietnamese products to foreign markets.
The Deputy Prime Minister believes that Vietnam's growth rate will not only reach 8% but can exceed even more.
In addition, to achieve this goal, the Government leader emphasized the transformation of the economic growth model towards relying on technology and digital transformation.
Risk control, breakthrough solutions to achieve GDP growth target exceeding 8%
Submit to the National Assembly the GDP growth target of 8% or more in 2025
The government sets up working groups with localities to promote growth.
Source: https://vietnamnet.vn/chi-gan-900-000-ty-cho-dau-tau-keo-tang-truong-2371423.html
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