Vietnam PM Orders Monthly, Quarterly Growth Scenario Updates and Bottleneck Resolution

Vietnamese Prime Minister Le Minh Hung has instructed ministries and localities to update monthly and quarterly economic growth scenarios, and to resolve bottlenecks, as the remaining time in the year is limited and the set growth targets are high. He emphasized that promoting growth must go hand-in-hand with maintaining macroeconomic stability and controlling inflation. At the government's regular meeting on September 3, the Prime Minister stated that bottlenecks affecting growth targets must be identified and resolved, especially in sectors that are growth drivers and have significant growth potential. He also urged proactive price management for essential goods and services, increased market supervision, and action against profiteering and unreasonable price hikes. Regarding monetary policy, the State Bank of Vietnam was instructed to continue flexible monetary policy operations, focusing credit on priority areas and key projects, and controlling risky sectors. The central bank must assess the "balance point" between inflation control and growth support, determine warning thresholds, maintain liquidity stability, and strive to reduce lending interest rates. For fiscal policy, the Ministry of Finance is tasked with continuing to implement tax, fee, and charge exemption, reduction, and deferral policies to support people and businesses. The VAT refund process for exports will also be reviewed to increase risk classification and expedite applications from well-compliant businesses, thereby reducing time and costs. Public investment continues to be identified as a growth driver. The Ministry of Finance is urged to accelerate disbursement to ensure 100% of allocated capital plans are completed. Capital markets, corporate bonds, and stock markets also need to continue developing to supplement economic resources and reduce reliance on credit. After eight months, public investment disbursement reached nearly VND 510 trillion, equivalent to 49.8% of the plan. The Prime Minister noted that progress in some ministries and key projects has not shown positive changes, with ongoing issues in land clearance, material supply, labor, and rising costs. Furthermore, ministries were asked to synchronize solutions to promote exports and control trade deficits, aiming for balanced trade to serve the "double-digit" growth objective. The Ministry of Industry and Trade is assigned to analyze export groups with declining performance and large trade deficits to devise appropriate solutions. It must also accelerate negotiations for trade agreements with new partners and increase promotion in markets like Halal, Latin America, and Africa. Maximizing orders for high-demand global items such as electronics, machinery, and agricultural and aquatic products is crucial. The ministry is also responsible for monitoring oil and energy prices and ensuring sufficient electricity supply for production, business, and daily life. Accelerating key power and oil/gas projects and resuming the operation of biofuel production plants are also priorities. According to reports at the meeting, the macroeconomic situation in the first eight months of the year was generally stable. State budget revenue reached VND 2.03 quadrillion, meeting 80% of the estimate. Total import-export turnover reached USD 770.14 billion, up 28.7% year-on-year. Industrial production continued to grow, with the Industrial Production Index (IIP) in August up 14.4% year-on-year, and an average increase of nearly 12% over eight months. Registered FDI capital reached USD 40.63 billion, up 55.4%, while disbursed capital reached USD 17.25 billion, up 12%. The Prime Minister acknowledged that with limited time remaining until the end of the year and heavy demands, government members must demonstrate responsibility, proactivity, and flexibility to achieve the set goals. Information Source: VnExpress