‘There is a basis for the economy to grow by 8% this year’

This year, the Government targets a higher economic growth rate of 8% or 10% under favorable conditions, to create double-digit growth momentum for the next period. Many localities also target double-digit GDP growth this year.

At the Government’s regular press conference on January 8, Deputy Minister of Planning and Investment Nguyen Duc Tam said GDP growth in 2024 will reach 7.09%, exceeding the set target (6.5%). Not to mention, the impact of Typhoon Yagi and the storm circulation that landed in the Northern provinces in September, causing GDP to decrease by 0.8 percentage points.

Mr. Tam said this is an important basis and premise to achieve the GDP target of 8% increase by 2025.

In fact, the GDP target of 8-10% is higher than the target assigned by the National Assembly (6.5-7%). International organizations forecast that Vietnam’s GDP this year may be below 7%. For example, the IMF forecasts 6.1%, higher than countries such as China, Indonesia and Thailand (3-5.1%). ADB is about 6.6%, thanks to the momentum from trade and investment in 2024. However, according to the Government, this will be the foundation for Vietnam to achieve double-digit growth in the coming period (2026-2030). . Previously, Minister of Planning and Investment Nguyen Chi Dung recognized that in the next 20 years, Vietnam must have high growth, striving for 10% or more, to become a high-income country by 2045.

According to leaders of the Ministry of Planning and Investment, innovation and institutional improvement are still one of the driving forces to help growth achieve high results. Last year, a series of laws on investment and finance were amended in the direction of decentralization and decentralization of power to localities. It is expected that at the mid-session of this year, the Government will present many draft laws such as the Law on Management and Use of State Capital at Enterprises, the Law on Enterprises… to untie the difficulties of businesses.

Public investment is also focused on disbursement right from the beginning of the year, because 1 dong of disbursed public capital will entail 2 dong of capital for social investment. “This will be a source of capital, creating a great driving force to stimulate growth,” said Deputy Minister Nguyen Duc Tam.

This year, the Government requested the early restart of nuclear power plant projects, international financial centers in Ho Chi Minh City and Da Nang, and the establishment of free trade zones in some localities. Key infrastructure projects, connecting the highway system with airports and seaports such as 3,000 km of highways and 1,000 km of coastal roads, Long Thanh international airport… are urgently completed. .

“Many roads will be upgraded from two to three lanes, while the international financial center is a new game. If done, it will increase resources,” Mr. Tam added.

Along with that, traditional growth drivers of consumption and export are also strengthened and renewed. The government will have solutions to stimulate domestic consumption, including attracting 120-130 million domestic tourists and 20 million international tourists.

Along with the high growth target, Mr. Tam said the Government also requires maintaining macroeconomic stability, controlling inflation, and ensuring major balances. That is, high growth but still must ensure the fundamental factors.

Accordingly, monetary policy will be managed flexibly and proactively. Meanwhile, fiscal policy (tax exemptions and reductions for businesses) will remain until mid-year. “This will create conditions for businesses to develop, then contribute to the budget and stimulate domestic consumption,” he concluded.