Prime Minister chairs discussion on macroeconomic management

The Prime Minister delivered an opening speech at the discussion on macroeconomic management. Photo: VGP/Nhat Bac

Also attending the discussion were Deputy Prime Minister Le Minh Khai, Minister of Finance Ho Duc Phoc, Governor of the State Bank Nguyen Thi Hong, Minister and Head of the Government Office Tran Van Son, Minister of Natural Resources and Environment Tran Hong Ha, representatives of leaders of ministries, sectors, central agencies, a number of domestic and foreign experts and scientists, and representatives of a number of international organizations.

Previously, on July 28, right after the US Federal Reserve (Fed) raised interest rates by 0.75 percentage points on the night of July 27 and central banks of many countries raised interest rates several times to respond to recent sharp increases in inflation, Prime Minister Pham Minh Chinh chaired a meeting with leaders of several ministries and sectors to discuss appropriate solutions and policies, both short-term and long-term, to continue controlling inflation, stabilizing the macro-economy and promoting socio-economic recovery and development.

In his opening remarks at the discussion, Prime Minister Pham Minh Chinh assessed that in recent times, the situation has faced more difficulties and challenges than opportunities and advantages in the context of rapid, complex, unpredictable and unprecedented international developments; complicated epidemic developments in many countries; high inflation, devaluation of currencies of many countries; and fierce strategic competition.

The change in policy orientation in many countries has narrowed the market, affected supply chains, and negatively impacted our country in many areas, especially export and import, high prices of gasoline and oil, and input material prices. Our country's economy is highly open, its scale is still modest, and its resilience is limited, so even a small change from the outside can have a big impact on the country.

The Prime Minister said he has assigned the Ministry of Planning and Investment to conduct research on maintaining macroeconomic stability, controlling inflation, and ensuring major balances of the economy. Photo: VGP/Nhat Bac

In that context, under the leadership of the Party, headed by General Secretary Nguyen Phu Trong, the participation of the entire political system, the support of the people and businesses, the support of international friends and partners, we have promoted the strength of the nation combined with the strength of the times in a difficult context to both protect independence, sovereignty, territorial integrity, maintain political stability, social order and safety, promote relations with other countries, ensure macroeconomic stability, control inflation and promote growth, ensure major balances (revenue-expenditure, import-export, energy, food and labor).

In 2022, GDP in the second quarter increased by 7.72% (the highest rate in the past 11 years), contributing significantly to the 6.42% increase in the first 6 months of the year. Up to this point, the 7-month consumer price index increased by 2.54% over the same period last year; domestic gasoline prices were brought back to the level before the conflict in Ukraine; import-export turnover reached 432 billion USD...

The Prime Minister affirmed that the Government is always receptive to the opinions of scientists, managers, and international organizations to proactively respond with appropriate, timely, and scientific policies. Photo: VGP/Nhat Bac

Vietnam is implementing a socio-economic recovery and development program (with a scale of 340,000 billion - about 4% of GDP), focusing on healthcare, social security, business support and infrastructure investment.

At the same time, continue to implement breakthroughs in institutions, infrastructure, and human resources; promote economic restructuring, innovate growth models, enhance the application of science and technology, promote digital transformation, develop green economy, circular economy, energy conversion, respond to climate change, and create a foundation for sustainable development.

Along with that, social security is ensured, the material and spiritual life of the people is improved. Foreign affairs and integration are promoted, the prestige and international position of Vietnam are raised. Focus on handling urgent, arising issues and outstanding, long-standing issues, achieving many positive results. Continue to promote the building of a clean and strong Party and political system, preventing and combating corruption and negativity.

However, the Government determined that the situation continues to have more difficulties and challenges than opportunities and advantages, so it is absolutely necessary not to be subjective or negligent. Continue to coordinate harmoniously, reasonably, synchronously, closely, flexibly and effectively between monetary policy, fiscal policy and other macroeconomic policies. In particular, implementing a prudent, flexible, certain and effective monetary policy; implementing a reasonable and effective expansionary fiscal policy. Developing the capital market, corporate bond market, and real estate market safely, transparently, effectively and sustainably.

Delegates attending the discussion. Photo: VGP/Nhat Bac

The Prime Minister affirmed that the Government is always receptive to the opinions of scientists, managers, and international organizations to proactively respond with appropriate, timely, scientific, and effective policies, with the spirit that "a small policy can also create great impact and efficiency", all for the goal of building a strong and prosperous country, with increasingly happy and prosperous people, maintaining independence, sovereignty, and territorial integrity, and building an independent and self-reliant economy associated with proactive, active, substantive, deep, and effective international integration.

The Prime Minister said that he had assigned the Ministry of Planning and Investment to conduct research on maintaining macroeconomic stability, controlling inflation, ensuring major balances of the economy, promoting rapid recovery and sustainable development. The Prime Minister asked delegates to discuss, give comments, and assess the situation objectively, honestly, and closely, and to provide forecasts, goals, tasks, and solutions.

Ha Van