Timely policy response

Investors monitor the stock market. (Photo: DANG ANH)

More opportunities than challenges

According to Deputy Minister of Planning and Investment Tran Quoc Phuong, 2024 is a pivotal year for the 2021-2025 Five-Year Plan. Therefore, this is a time of special significance in successfully implementing the Resolution of the 13th National Party Congress, requiring all levels and sectors to take advantage of every opportunity to promote growth.

In order for the economy to reach the 2024 target, it is necessary to continue to strongly promote and renew traditional driving forces of investment, consumption and export; at the same time, supplement and promote the exploitation of opportunities from new growth drivers and new economic models, such as digital transformation, green transformation, circular economy, sharing economy, emerging industries such as semiconductor chip manufacturing, renewable energy, etc.

Faced with the difficulties of the business community, Deputy Minister Tran Quoc Phuong said that in the coming time, it is necessary to resolutely, synchronously and effectively implement solutions and policies to ensure harmony, handle short-term situations and develop in the medium and long term, especially in removing difficulties and supporting domestic enterprises to develop.

“As a strategic advisory body to the Party and Government on macroeconomic management, the Ministry of Planning and Investment will continue to research, advise, and propose to the Government to perfect institutions and build mechanisms and policies to promote growth, maintain macroeconomic stability, control inflation, and ensure major balances of the economy,” Deputy Minister Tran Quoc Phuong added.

Faced with the recovery trend but still many risks of the world economy, Dr. Can Van Luc, Chief Economist of the Bank for Investment and Development of Vietnam, commented that the growth drivers of the Vietnamese economy are recovering, although unevenly.

The economic recovery is reflected in indicators reflecting the improved macroeconomic foundation and risk management; fiscal risks (public debt, foreign debt, government debt repayment obligations, etc.) are at an average level, fiscal policy space remains to continue to provide fiscal support policies in the coming time, contributing to reducing pressure on monetary policy. Inflation, although on the rise, is still under control. Similarly, interest rates have decreased, exchange rates and bad debt have increased, still under control; the stock market has increased quite well thanks to expectations of market upgrade and real estate is gradually recovering...

Institutional focus

Commenting on the economic growth prospects in the last months of 2024 and 2025, Dr. Can Van Luc said that the 6% growth target for this year is achievable and the economic recovery trend will be stronger in 2025. The driving force for growth still comes from public investment, export, consumption along with new growth drivers from the development of digital economy, green economy, circular economy, energy conversion, etc. Dr. Can Van Luc also noted that trade and investment activities will continue to be more vibrant thanks to the international integration process being promoted through upgrading strategic partnerships with the US, Japan, Australia, etc.

From the perspective of the legislative body, Mr. Phan Duc Hieu, Standing Member of the National Assembly's Economic Committee, recommended that investors and businesses need to pay attention to institutional and market changes in the current context.

Meanwhile, in terms of institutions, the Government is proposing to accelerate the implementation of four important laws, including the Land Law, Housing Law, Real Estate Business Law, and Credit Institution Law, etc. The early implementation of these laws is expected to contribute to promoting the recovery of the real estate market, corporate bonds, and financial and banking activities to become healthier and more sustainable. Thus, new rules of the game have been established, businesses need to carefully study and have strategies suitable to the four laws, because these laws can restructure the market for related production and business sectors.

Source