(Illustrative photo: baodautu.vn)

Vietnam's economy showed many positive signs in the past 7 months. The government has continued to improve institutions and resolve the difficulties and obstacles that have been impeding economic growth. In July, the government issued documents to guide enforcement of the revised Land Law, Housing Law, Real Estate Business Law, and Credit Institutions Law.

Many indicators surge

In the reviewed period, Vietnam recorded faster growth month after month and better results than in the same period last year. Positive growth was recorded in agriculture, services, and industry. The Industrial Production Index increased in 60 of 63 localities, and stood 8.5% higher than in the same period last year.

The results show a broad-based economic recovery. The macroeconomy remained stable, with inflation under control and major balances maintained. The Consumer Price Index (CPI) increased 4.12% in 7 months. Exports continued to increase, creating an export surplus of more than 14 billion USD. Foreign direct investment (FDI) attracted 18 billion USD, up nearly 11%. The Purchasing Managers Index (PMI) in July reached 54.7 points, the highest level since November 2018.

Phan Thi Thang, Deputy Minister of Industry and Trade, said: “These indicators show that industrial production is recovering strongly compared to 2023 with very positive growth momentum. The manufacturing and processing industry has resumed its leading role in the economy. Production capacity of domestic industrial enterprises has recovered and is ready to take advantage of access to new markets.”

Positive economic indicators give Vietnam a bright prospect in the second half of the year and in the long term. Many international organizations, financial institutions, and experts have acknowledged Vietnam's strong economic results. ADB raised its forecast for Vietnam's growth this year to 6%. The ASEAN+3 Macroeconomic Research Office forecasts 6.3% growth. HSBC forecasts 6.5%.

Vietnam continues to be an attractive destination for foreign investors, said Takeo Nakajima, Chief Representative of Jetro Hanoi. He quoted a Jetro survey which shows that 70% of businesses operating in Vietnam plan to expand their production scale with new business models and activities. In the first half of this year, the number of new projects decreased 20%, but the investment capital by long-time businesses in Vietnam tends to increase.

Mobilizing resources for economic development

Since the beginning of the year, the Vietnamese government, ministries, sectors, and localities have been determined to mobilize every resource to reach or exceed this year’s targets, particularly the target of 6.5% growth.

Specific solutions are promoting growth in all sectors, including the traditional drivers of investment, export, and consumption, plus the new drivers of green growth, circular economic growth, the digital economy, the sharing economy, and the knowledge-based economy.

All resources are being mobilized to boost production and business, generate jobs, and promote economic growth. Three strategic breakthroughs including upgrading infrastructure, developing institutions, and training high-quality human resources have been strengthened. Foreign affairs, foreign economic activities, and international integration will be further accelerated to consolidate Vietnam’s role, position, and prestige.

At the government’s monthly meeting for July, Prime Minister Pham Minh Chinh underlined the major tasks and solutions for the coming months.  

“We aren’t changing our goals. We must maintain macroeconomic stability, control inflation within the limits set by the National Assembly, promote stronger growth, ensure major balances, gain a higher surplus, and limit public debt, government debt, and budget overspending. We must guarantee political stability, social order and safety, and national sovereignty. We must achieve better results than in previous months and previous quarters. This year’s results must be more inclusive and comprehensive than in 2023,” said Mr. Chinh.

The third quarter of 2024 will be a particularly important time to strive to achieve the yearly plan. Vietnam’s positive economic growth in the past 7 months will be an important factor in reaching this year’s GDP growth target of 6-6.5%.