In a recent cabinet meeting, Prime Minister Pham Minh Chinh outlined Vietnam’s ambitious economic goals for the third quarter of 2024, aiming for a GDP growth of 6.5-7%. This announcement comes in light of Vietnam’s strong economic performance in the first half of the year, which saw a GDP growth of 6.42% and an impressive 6.93% in the second quarter, as reported by the General Statistics Office (GSO).
The Prime Minister’s pledge rings especially significant as it surpasses the National Assembly’s overall target for 2024, which stands at 6-6.5%. This goal underscores Vietnam’s determination to continue its economic recovery and growth trajectory despite global economic challenges.
Prime Minister Pham Minh Chinh chairs a cabinet meeting, July 6, 2024. Photo courtesy of the government’s news portal.
The announcement by PM Chinh followed a comprehensive review by the Ministry of Planning and Investment regarding Vietnam’s socioeconomic status during the first half of 2024. Based on this assessment, the ministry proposed two strategic options for growth: one that would push for a full-year GDP target of 7%, with quarterly growth rates of 7.4% in Q3 and 7.6% in Q4; and another that aimed for a more conservative 6.5% growth overall, with matching projections of 6.5% for Q3 and 6.6% for Q4.
Several favorable conditions have been identified that could help Vietnam reach these ambitious targets. Economic sectors are exhibiting promising growth, particularly in public, private, and foreign investments. Additionally, Vietnam’s export performance is strong, driven in part by a resurgence in tourism and domestic consumption, alongside important regulatory updates. Key urban centers like Hanoi, Ho Chi Minh City, and Binh Duong are also performing well, making them essential drivers of this growth.
For the latter half of 2024, Prime Minister Chinh emphasized the government’s commitment to implementing a fiscal policy that prioritizes reducing loan interest rates and ensuring access to credit. Maintaining the stability of the exchange rate and the gold market will also be crucial in navigating economic uncertainties. One of the primary objectives is to manage prices effectively while controlling inflation, which is targeted to stay at 4.5% or lower.
The Prime Minister also underlined the importance of ensuring a stable supply of electricity and fuel. Furthermore, he called for greater efforts in public investment disbursement, expediting projects that can stimulate economic activity. Diversifying export markets and encouraging increased domestic consumption are key strategies, with initiatives aimed at promoting cashless payment options and e-commerce being central to these efforts.
In pursuit of these goals, the reduction of administrative procedures and the promotion of digitalization will play a critical role. The government aims to streamline processes to foster a more conducive business environment, thereby enhancing Vietnam’s economic resilience and competitiveness on the global stage.
In terms of sectoral performance, statistics for H1 2024 revealed a commendable growth of 3.38% in agriculture, forestry, and fisheries, a robust 7.51% in the industry and construction sectors, and a healthy 6.64% in services. This diversified growth across sectors signifies a balanced economic landscape and sets a solid foundation for the government’s ambitious goals.