Estimated to achieve and exceed 14/15 socio-economic targets in 2024

Based on the results of the first 8 months of 2024, the socio -economic situation is estimated to have achieved and exceeded 14/15 main targets for the whole year; of which all social targets were achieved and exceeded, and the target of average social labor productivity growth rate was achieved after 3 years of not achieving it.

Minister of Planning and Investment Nguyen Chi Dung reports at the meeting on the morning of October 9. (Photo: DUY LINH)

Continuing the 38th Session, on the morning of October 9, Standing Committee of the National Assembly comment on the Government 's Report on the results of implementing the 2024 socio-economic development plan; projected socio-economic development plan for 2025.

The GDP growth rate for the whole year is estimated at 6.8-7%, exceeding the target set by the National Assembly.

Reporting at the meeting, Minister of Planning and Investment Nguyen Chi Dung said that the socio-economic situation has recently recovered clearly, with each month being better than the previous month, each quarter being higher than the previous quarter, achieving the set general goals and many important results in various fields.

Based on the results of 8 months, it is estimated that 14/15 main targets will be achieved and exceeded in 2024; including achieving and exceeding all social targets, achieving the target of average social labor productivity growth rate after 3 years of failure.

The GDP per capita target is approximately reached (4,647 USD compared to the target of 4,700-4,730 USD) due to exchange rate fluctuations.

However, if calculated in VND, at the time of planning for 2024, the target GDP per capita was about 112 million VND; the estimated implementation in 2024 was about 123 million VND, exceeding the set target.

Also according to the Minister, the growth rate GDP The following quarter is higher than the previous quarter, the whole year is estimated to reach about 6.8-7%, exceeding the target set by the National Assembly (6-6.5%), belonging to the group of few countries with high growth in the region and the world and highly appreciated by international organizations.

The average consumer price index (CPI) growth rate in the first 8 months was 4.04%; the whole year is estimated to increase below 4.5%, achieving the target set by the National Assembly in the context of salary increase implementation from July 1, 2024.

In particular, nearly 700 trillion VND has been allocated, ensuring sufficient resources to increase the basic salary by 30% for cadres, civil servants, public employees, and armed forces, while adjusting pensions, social insurance, preferential allowances for meritorious people, and social allowances from July 1, 2024 to the highest level ever.

In addition to the achieved results, the Government's report also pointed out a number of limitations and difficulties in various areas. Specifically, macroeconomic stability still has potential risks, especially from external factors such as inflation and exchange rates; production and business activities face many difficulties, while having to face increasing pressure on anti-dumping investigations and origin fraud; and having to respond faster and better to technical barriers related to the environment, sustainable development, green transformation, etc.

Domestic purchasing power shows signs of slowing down; trade surplus still depends on the FDI sector. Flooding, traffic jams, traffic accidents, fire prevention and fighting, environmental pollution... remain major challenges...

Strengthening supervision of gold, stock and corporate bond markets

Presenting the audit report, Chairman of the Economic Committee Vu Hong Thanh emphasized a number of achievements in implementing the 2024 Socio-Economic Development Plan; however, he requested more attention and careful assessment of a number of issues.

Specifically, aggregate demand recovered weakly, in which consumer demand increased lower than expected in the context of inflation under more pressure in the last months of the year, public investment and private investment increased slowly; the service trade deficit has not improved. In the first 9 months of 2024, total retail sales of goods and consumer service revenue (excluding price factors) increased by 5.8%, lower than the 7.8% increase in the same period in 2023. Regarding investment, non-state investment capital in the first 9 months of 2024 increased by 7.1%, equal to nearly half of the growth rate of the 2015-2019 period; state capital increased by 4.1% over the same period last year, significantly lower than the 15.1% increase in the same period in 2023.

Chairman of the Economic Committee Vu Hong Thanh presents the audit report. (Photo: DUY LINH)

According to the Ministry of Finance, the estimated disbursement of public investment from the beginning of the year to August 31, 2024 reached 37.01% of the plan and 40.49% of the plan assigned by the Prime Minister, lower than the same period in 2023 in terms of rate (reaching 39.55% of the plan and 42.35% of the plan assigned by the Prime Minister), about VND 25,000 billion lower in absolute disbursement.

In terms of disbursement rate, 9 ministries, central agencies and 32 localities have high disbursement rates, over 45% of the plan assigned by the Prime Minister. However, 31/44 ministries, central agencies and 28/63 localities still have public investment disbursement rates in the first 8 months of 2024 below the national average. The Government is requested to clarify the causes and have effective solutions to accelerate public investment disbursement and promote economic growth, Mr. Thanh said.

In addition, according to the audit agency, the financial and monetary markets still have potential challenges, bad debt is high, the handling of weak banks is slow, credit growth in the first months of the year is still low, and the ability of enterprises to absorb capital and access credit capital is still limited.

Exchange rates have had periods of unusual fluctuations that have affected business operations; gold market management still has many shortcomings, causing pressure on the foreign exchange market and exchange rates. Cyber security risks to the Vietnamese financial system have become permanent and present with unpredictable consequences. Liquidity in the corporate bond market has improved significantly but still faces many challenges to become an effective medium- and long-term capital mobilization channel for the economy, sharing the role of capital supply with the banking system.

Regarding the proposed Socio-Economic Development Plan for 2025, Chairman Vu Hong Thanh emphasized the need for special solutions to restore production of enterprises in localities affected by the recent storm No. 3.

The audit agency also proposed to continue to operate monetary policy in a truly proactive, flexible, timely and effective manner. Maintain stable liquidity and ensure the safety of the banking system; resolutely and effectively implement the Project on restructuring credit institutions in conjunction with handling bad debts and handling weak banks; have long-term solutions to mobilize and provide sufficient capital for the economy and require strategic breakthroughs in infrastructure and human resource development; have fundamental and sustainable solutions to direct cash flow into production and business, especially in priority areas.

At the same time, strengthen management and supervision of the gold market, stock market, corporate bond market, real estate market, along with solutions to stabilize and promote the development of markets, strengthen investors' confidence. Research and implement solutions to promote the healthy and sustainable development of the corporate bond market to support capital mobilization of enterprises, thereby promoting private investment and supporting the goal of high and sustainable economic growth of Vietnam.

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