PMI returns above 50
On February 1, Prime Minister Pham Minh Chinh chaired the Government meeting in January - the first month of 2024.
According to the report, the socio-economic situation in January continued its positive recovery trend with many important and noteworthy results in many fields. The consumer price index (CPI) increased by 3.37% over the same period (mainly due to the impact of the planned increase in prices of medical services and retail electricity).
State budget revenue reached 231,000 billion VND. Total import-export turnover reached nearly 64.22 billion USD, up 37.7% over the same period, of which export increased by 42%, import increased by 33.3%, trade surplus of 2.92 billion USD.
Notably, the Vietnam Manufacturing Purchasing Managers' Index (PMI) returned above the 50-point mark in the first month of the year, rising to 50.3 points from 48.9 points in December 2023. The increase was the most significant since September 2022. The Industrial Production Index (IIP) increased by 18.3% year-on-year, of which the processing and manufacturing industry increased by 19.3%.
Government meeting in January - the first month of 2024 (Photo: VGP).
Disbursement of public investment capital in January is estimated at 2.58% of the plan, higher than the same period (1.81%). Registered FDI capital reached 2.36 billion USD, up 40.2%. Implemented FDI capital reached 1.48 billion USD, up 9.6% over the same period.
The number of newly established enterprises increased in both quantity and registered capital compared to the same period, up 24.8% in number of enterprises, up 52.8% in registered capital and up 50.8% in number of employees.
Although the socio-economic situation in January continued to show a positive recovery trend, in the conclusion of the meeting, Prime Minister Pham Minh Chinh frankly pointed out the shortcomings and limitations with the requirement that we absolutely must not be complacent or subjective with our victories, or be negligent or lose vigilance in the face of the situation.
Accordingly, macroeconomic stability, major balances, inflation, exchange rates, and bad debt pose risks. Many industries and services are still facing difficulties due to continued impacts from fluctuations in the world market. Tensions in the Red Sea have increased shipping costs to the US and EU, affecting Vietnam's import and export activities. Global consumption has not yet recovered clearly. Production and business activities still face many difficulties, with potential risks of increasing bad debt.
“Our country is a developing country, the economy is in the process of transformation, starting from a low point, the scale is still modest, openness is large, resilience and competitiveness are limited - just a small external fluctuation can have a big impact on the internal,” said the Prime Minister.
Regarding the viewpoint of direction and management in the coming time, the Prime Minister requested to promote the achievements, accumulated experience, be more courageous, maintain principles, be persistent, steadfast but proactive, creative, innovative, and improve forecasting capacity.
“Grasp the situation, research, refer to world experience, have solutions, steps, and roadmaps suitable to conditions and circumstances, without jerking or braking suddenly,” the Prime Minister emphasized his guiding and operating viewpoint.
The Prime Minister also requested to promote a high sense of responsibility, dare to think, dare to do; improve coordination efficiency, especially in solving inter-sectoral and inter-regional issues; proactively report and propose solutions to issues beyond authority.
Disbursement of public investment capital is a key political task.
Regarding the main tasks and solutions in February, the first quarter and 2024, the Prime Minister continued to emphasize the requirement of maintaining macroeconomic stability, controlling inflation, and ensuring major balances of the economy.
Strengthen traditional markets, expand new markets (Middle East, Africa, Latin America, Halal food market). Accelerate disbursement of public investment capital, national target programs. Increase revenue, save state budget expenditure (focus on investment in large project development, salaries, social security). Strictly control budget deficit, public debt, government debt, and national foreign debt.
Prime Minister Pham Minh Chinh speaks at the meeting (Photo: VGP).
Focus on creating favorable conditions to attract and disburse investment resources from the whole society. Resolutely handle difficulties and actively support the acceleration of investment projects. Strengthen the promotion and attraction of large-scale, high-tech FDI projects, especially in the processing, manufacturing, electronics, semiconductor, hydrogen industries, etc.
The Prime Minister paid special attention to promoting new growth drivers. In particular, completing planning and strongly promoting 6 socio-economic regions.
Seize new opportunities, attract investment, develop digital transformation and green transformation industries and fields, etc. Attract green financial resources and preferential green credit to develop renewable energy and new hydrogen energy. Build and develop regional and international financial centers in Vietnam. Organize well investment, trade and tourism promotion activities.
The Prime Minister requested to accelerate the disbursement of public investment capital, 3 national target programs, and speed up the approval of planning. “Determining the disbursement of public investment capital is one of the key political tasks of 2024,” the Prime Minister emphasized.
Accelerate the progress of large-scale, high-tech projects with strong spillover effects; proactively implement solutions to ensure energy security. Resolutely avoid shortages of electricity and gasoline (especially when 2024 is predicted to be a year of severe drought and water shortage due to El Nino) .
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