Must focus on removing difficulties for businesses

In the overall achievements of economic growth, a part of the economy which is considered a pillar of development, the Vietnamese business sector, is still facing difficulties. Therefore, in the effort to achieve the economic growth target in 2024, economic expert - Associate Professor, Dr. Tran Dinh Thien emphasized the need to focus on removing difficulties for this sector.

To achieve the economic growth target, it is necessary to continue investing in infrastructure development, increase attractive conditions for foreign investment, disburse public investment, and promote import and export. Photo: VNA

In the first 8 months of 2024, industrial production increased by 8.5% over the same period, the total import-export value reached over 473 billion USD, the trade surplus was nearly 15.5 billion USD. What do you think about these growth results of the economy?

Compared to the figures achieved in the first and second quarters, the third quarter with its economic growth indicators can be said to be very positive. Here I would like to emphasize that the general index of GDP growth in the first and second quarters was at a leap and the third quarter had a stronger step forward than the second quarter, in which the industrial index was the leading index (up 8.5%) - this is a very leading figure.

In addition, a typical indicator for the foreign economy is import and export. If in 2023, import and export growth rate decreased sharply, this year there will be a breakthrough (increase of about 15-17%); trade surplus is also a hopeful number.

The results of economic growth in the first 8 months of 2024 are reflecting the positive level of the economy. At the same time, it shows the ability of the domestic economy to rise and seize opportunities; especially the way to inspire and put "pressure" on development from the central government.

On the other hand, besides the general growth figures, we must realize that there are even more positive issues, which is the story of infrastructure development. That is the inauguration of highways, the miracle of the inauguration of the 500 kV line 3; the implementation of the construction of Long Thanh Airport... has brought very positive inspiration, as well as confidence in the long-term development of the economy compared to the general growth figures.

To achieve the above results, the Government has urged and acted very resolutely, especially demonstrated through the lightning-fast construction, "overcoming the sun, overcoming the rain" to inaugurate the 500 kV line 3. In addition, the results achieved are due to the contributions of ministries, localities, and enterprises. For example, the inauguration of the 500 kV line 3 is the joint effort of localities, ministries, in which EVN and the Ministry of Industry and Trade are at the forefront. Or the positive export indicators, especially domestic exports have a remarkable breakthrough, not exports led by FDI enterprises...

Economist - Associate Professor, Dr. Tran Dinh Thien

Along with the positive growth indicators of the economy, in your opinion, what difficulties and shortcomings still exist?

In fact, there are still many obstacles that the economy has not been able to overcome. For example, the Government's efforts to increase public investment are very large, but the results are still far from expectations; or the story of accessing capital, reforming administrative procedures... to help businesses recover and deploy still has many difficulties.

Accordingly, in the general growth achievements, a part of the economy, which is considered a pillar of development, is still facing difficulties, which is the Vietnamese business sector, especially the private economic sector. Almost all businesses have not yet fully recovered from the difficulties of the Covid-19 pandemic, and growth indicators reflect that there are still very high difficulties.

Advantages and challenges are currently intertwined, especially in the context of natural disasters and floods causing severe damage to many localities. In your opinion, will the growth target for 2024 be achieved?

According to the traditional calculation, the GDP of the economy continues to grow positively. Even with the determination to recover from the stronger storm No. 3, the growth is even stronger.

Thus, with the current growth momentum and recovery efforts of the economy, the growth target as forecasted by the World Bank of 6% is achievable. However, the issue we need to pay attention to is that Vietnam's internal strength must be increased appropriately, not just mainly due to the contribution from the FDI sector because this will not ensure balanced and sustainable development for the economy.

In addition, when calculating growth, we must emphasize that the damage caused by natural disasters, especially Typhoon Yagi, is extremely severe, causing great damage to the economy. This means reminding us not to be overly optimistic about the growth index.

So, according to you, what solutions should the Government and local ministries and branches implement to achieve the economic growth target in 2024?

To achieve the growth target in 2024, in my opinion, with the existing motivations, we need to continue to implement and strengthen them. Such as continuing to invest in infrastructure development, increasing attractive conditions for foreign investment, disbursing public investment, promoting import and export...

However, we should not focus too much on the achievements of 2024 but need to prepare to create conditions for 2025 and the following years to create a foundation for stronger growth. Because, to achieve the targets for 2024 with the remaining 3 months, we have almost set them up 9 months ago. Therefore, the current efforts for economic growth are for 2025.

Accordingly, to promote the implementation of economic growth targets, firstly, it is necessary to focus on removing difficulties for the private economic sector, by finding breakthrough solutions, having a new approach for this sector to develop. For example, we should not simply lower interest rates but must try to lower the interest rate level, have a more sustainable and active incentive system from taxes and fees to solve difficulties for the private economic sector more effectively.

Second , simplify and reduce business procedures; promote the development of the financial and monetary markets by removing obstacles and barriers to the entire structure of this system according to the Government's viewpoint of "implementing one law to amend many laws"; experiment with development models, but need to change the system thinking in the implementation process.

Third , strongly restore market problems; adjust and review how to handle shortcomings to avoid causing damage to a part of the economy. According to the Government's approach, we must focus more on safety so that Vietnam's domestic economy has the momentum to develop.

Fourth, creating a psychological and confidence turning point to help the private economic sector, as well as society, create opportunities to access the world economy; at the same time, build a sustainable foundation to attract strategic investors, helping the economy to develop rapidly.

For the Ministry of Industry and Trade in particular, in order to contribute to the implementation of the growth targets of the industry as well as the economy, can you suggest some specific solutions?

The Industry and Trade sector has made very positive efforts in recent times. Thus, the issue is that the Ministry of Industry and Trade should not focus too much on and worry about implementing the 2024 target, but should look forward to see how important the role and tasks of the Ministry of Industry and Trade are to the economy.

For example, the inauguration of the 500 kV line 3 shows the Government's determination to overcome difficulties to look far into the future. This is the main responsibility of the Ministry of Industry and Trade. Therefore, the Ministry of Industry and Trade must clearly recognize that the economy is rising to a different level and position, thus requiring the preparation of new conditions for economic development, not just stopping at solutions to promote and strengthen.

For example, the Ministry of Industry and Trade needs to build an institution to help attract technology "eagles" to Vietnam, especially semiconductor "eagles", not in a matter of months or a year, but in many months or years. In addition, the Ministry of Industry and Trade can work with the Ministry of Planning and Investment or other ministries to join forces to create a completely new industrial ecosystem, in line with the spirit and new development policies of the Government.

In addition, the Ministry of Industry and Trade must play a role in removing difficulties for enterprises in the fields of industry, trade and services - these are not only enterprises in the specific fields of the Industry and Trade sector but also in the economy as a whole. Therefore, with this proactive spirit, the Government will certainly encourage, support and directly participate in promoting.

Thank you very much!

Source: https://congthuong.vn/thuc-hien-chi-tieu-tang-truong-kinh-te-phai-chu-trong-thao-go-kho-khan-cho-doanh-nghiep-348460.html