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Vietnam is pushing ahead with economic recovery despite challenges, the government says

Vietnam continues with economic recovery despite challenges, says government photo 1

Deputy Prime Minister Le Minh Khai presents a government report on socio-economic development during the ongoing session of the National Assembly in Hanoi on May 20

Presenting the government report, Khai said Vietnam has continued to stabilize the macroeconomy, control inflation and ensure major economic balances.

“GDP growth in the first quarter of 2024 reached 5.66%, the highest in the 2020-2023 period, demonstrating the great efforts of the government in the context of the economy facing many difficulties,” he stressed.

He unveiled key economic indicators in the first four months of the year and informed the NA delegates that state budget revenues reached 43.1% of the annual target; export turnover increased by 15%; the trade surplus generated $8.4 billion; public investment disbursements amounted to 17.46% of the annual plan; and total registered FDI capital stood at 9.27%, an increase of 4.5%. Many major companies have committed to investing in key Vietnamese sectors such as the electronics, semiconductor and renewable energy industries.

The labor market has continued to recover, with the working age population increasing by 0.34% year on year to 51.3 million. The average income of workers now stands at 7.6 million VND per month, an increase of 549,000 VND from the same period last year.

The government has accelerated administrative reforms, improved the business and investment environment and reduced compliance costs, to create favorable conditions for businesses, people and foreigners, the Deputy Prime Minister said.

Moreover, he noted that the government has stepped up its anti-corruption campaign under the mottos of “no exclusion zone”, “no exception” or “whoever the person is”, achieving important results, especially in the area of ​​asset recovery. In particular, she is actively working on a project to build a national database on asset and income control in an effort to combat corruption.

However, the Deputy Prime Minister also pointed to shortcomings in the government’s macroeconomic performance, including mounting pressures related to inflation, credit growth and gold price control. Companies continue to face difficulties in production and operations. In the first four months of the year alone, almost 86,400 companies withdrew from the market, an increase of 12.2% compared to the same period last year.

The real estate market is recovering at a slow pace, with the disbursement of the VND 120,000 billion social housing loan package not yet meeting expectations, as only almost VND 1,000 billion has been realized from twelve projects.

Progress on some key traffic and site clearance projects still remains slow, while some mechanisms, policies, regulations and administrative procedures are overlapping, cumbersome and slow to change, the Deputy Prime Minister said.

According to him, the government has developed eleven key tasks and solutions to achieve the objectives for this year and for the period 2021-2025, giving priority to promoting growth accompanied by macroeconomic stability, managing the inflation and ensuring major balances in the economy.

The emphasis will be on addressing long-standing problems and shortcomings; promoting decentralization; removing the fear of misconduct among civil servants; and increasing coordination between government and ministries, agencies, sectors and localities.

The Government will strive to make greater efforts and take more drastic measures to overcome all difficulties and achieve rapid and sustainable socio-economic development, along with ensuring national defense, security and deep international integration to achieve the highest goals for 2024 and achieve the highest targets for 2024. entire period from 2021 to 2025, the Deputy Prime Minister said.