Prime Minister Pham Minh Chinh: Macroeconomic stability, resolutely promoting rapid recovery and sustainable development

Opinions at the review meeting assessed that in March and the first quarter, closely following the 2022 theme of "Solidarity, discipline, proactive adaptation, safe and effective recovery and development", ministries, departments, branches and localities actively deployed key tasks to implement Resolutions 01, 02, Resolution 11 on the socio-economic recovery and development program, Resolution 128 on safe and flexible adaptation, and effective control of the epidemic.

In the first quarter of 2022, the Government focused on directing the implementation of "multi-objectives" including continuing to control the epidemic, implementing risk control, reducing the number of severe cases and deaths, not overloading the health system; promoting rapid recovery, sustainable socio-economic development, stabilizing the macro-economy, taking care of social security; firmly ensuring national defense, security, order and social safety in the face of complicated developments in the world situation... Government leaders have strengthened practical work at the grassroots level, visiting, surveying and working to remove important bottlenecks, and proposing breakthrough solutions for local socio-economic development.

The socio-economic situation in the first quarter improved in most areas, with many areas achieving the fastest growth since 2020, approaching pre-pandemic growth levels. The macroeconomy continued to be stable; inflation was controlled amid much pressure, with the average consumer price index in the first quarter increasing by 1.92%; major balances, food and energy security were ensured.

The processing and manufacturing industry increased by 6.37%, continuing to be the growth driver of the entire economy. State budget revenue was VND460.6 trillion, reaching 32.6% of the estimate, up 7.7% over the same period; state budget expenditure was VND351.3 trillion, reaching 23.4% of the estimate.

The economy's credit growth reached 4.03% (increased by 1.47% in 2021). The number of newly established and re-entered enterprises in the first quarter reached a record 60,000, 3 times higher than the same period last year (in March alone, the number of newly established enterprises increased by 96.3% with registered capital increasing by 127.3%).

Total social investment capital achieved positive results with VND562.2 trillion, up 8.9%, a positive signal in mobilizing and effectively using investment capital right from the first months of the year. Capital implemented from the state budget reached VND76.3 trillion, equal to 14.4% of the annual plan and up 10.6% over the same period. FDI capital implemented reached USD4.42 billion, up 7.8%, reaching the highest level compared to the first quarter of the years from 2018 to present.

Agricultural, forestry and fishery production achieved positive results. Winter-spring rice yield increased by 7.4 quintals/ha. Livestock recovered well, the output of fresh meat for slaughter in the first quarter of the main products (buffalo, cow, pig, poultry) all increased. Aquaculture output in the first quarter increased by 2%; farming increased by 5.1%, especially key products such as white-leg shrimp, tra fish... had good harvests and good prices.

Trade and services recovered positively, especially in March, with total retail sales of goods and consumer service revenue in the first quarter increasing by 4.4% over the same period, of which March increased by 9.4%. The supply chain of domestic and foreign goods gradually recovered. Tourism activities across the country showed signs of "warming up" again, with international arrivals reaching nearly 91,000, up 89.1% over the same period.

Import and export activities recovered strongly. The import and export turnover of goods in March reached 66.73 billion USD (up 36.8%); of which exports increased by 45.5%. In the first quarter, the total export turnover reached 176.35 billion USD (up 14.4%), of which exports increased by 12.9%, from a trade deficit of 1.96 billion USD by the end of February to a trade surplus of 809 million USD in the first quarter. Imports were mainly goods and raw materials for production.

We continue to strongly promote innovation, digital transformation, application of digital technology, development of new business models and activities, e-commerce, etc. Vietnam also effectively implements citizen protection work, basically completing the work of bringing Vietnamese people from Ukraine back to the country as needed.

Concluding this content, Prime Minister Pham Minh Chinh stated that the situation and developments in March and the first quarter have a great impact on the implementation of the set tasks, solutions and goals. The situation in Ukraine affects the global economy, society, politics, defense and security, and impacts the energy and financial markets and supply and demand of goods. Competition between major powers continues to be fierce. Input material prices in the world, logistics costs and inflation in many countries are increasing.

Faced with new, complex, sudden and unexpected developments, we must not only carry out regular tasks; but also overcome limitations and shortcomings in the past; resolve outstanding and long-standing issues related to weak projects, banks, cases, inspection and examination conclusions; and handle issues arising from the new situation.

The Government has closely followed the Party's guidelines and policies, the State's policies and laws, and the National Assembly's Resolutions, and implemented tasks and solutions in a positive, drastic, flexible, creative, and effective manner. Thanks to that, most sectors have achieved very positive changes and strong recovery.

GDP in the first quarter increased by 5.03%, higher than the growth rate in 2021 (4.72%) and 2020 (3.66%), gradually approaching that of 2019 (6.85%). In the context of great domestic and foreign inflationary pressure, the macro economy is stable; fiscal and monetary policies are coordinated harmoniously, reasonably and effectively; foreign exchange reserves increase; interest rates decrease but credit growth increases; fees and charges decrease but budget revenue increases.

Major balances were ensured (revenue met expenditure and exceeded the estimate by 33%; exports met imports and trade surplus was 809 million USD; major balance of electricity was ensured; food and foodstuffs were basically stable and exports grew well; the labor market recovered very quickly and has basically recovered).

Social security work is being implemented quickly and is getting better and better, social security coverage is increasing, ensuring that no one lacks food or clothing, especially during the lean season and Tet.

Independence, sovereignty, territorial integrity, political stability, security, order and social safety are maintained; foreign affairs are consolidated and enhanced, actively integrating deeply, substantially and effectively.

The epidemic situation is still under control nationwide, the number of new cases, severe cases, and deaths has tended to decrease rapidly and sharply since the end of March. We have also done a relatively good job of adjusting epidemic prevention measures according to the situation, and strengthening epidemic control according to risks.

People and businesses' trust in the Party, State, Government, and authorities at all levels has increased; friends, international partners, and investors agree, support, share, and give positive assessments of Vietnam.

The Prime Minister stated that overcoming difficulties and challenges and achieving the above results was thanks to the close adherence to the leadership and direction of the Central Committee, the Politburo, the Secretariat, headed by General Secretary Nguyen Phu Trong; the efforts of the Government, members of the Government, and authorities at all levels in organizing and implementing tasks and solutions according to their functions, duties, and powers; the close coordination between government agencies and between the Government and the National Assembly; the participation of the entire political system, the consensus and support of the people and businesses, friends, and international partners.

Along with that, it is necessary to maintain solidarity, unity, strengthen discipline, administrative discipline, be steadfast in matters of principle but flexible and creative in directing, operating, and solving specific problems. Ministries, branches, agencies, and localities, especially their leaders, must be more active and proactive in performing their functions, tasks, and powers, closely following and basing on the situation to effectively handle arising problems.

At the same time, it is necessary to further promote administrative reform; maintain independence, sovereignty, territorial integrity, political stability, and social order and safety.

Forecasting that the upcoming situation will continue to have advantages, opportunities, difficulties and challenges intertwined, but difficulties and challenges will outweigh opportunities and advantages, basically agreeing with the tasks and solutions stated at the meeting, the Prime Minister emphasized some major contents.

First of all, focus on maintaining macroeconomic stability by all means; closely follow the situation and developments of domestic and foreign markets to ensure major balances, avoid being passive or surprised. The State Bank, the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, the Ministry of Planning and Investment, the State Capital Management Committee at Enterprises, and relevant agencies must coordinate closely and synchronously to achieve this goal.

Firmly protect independence, sovereignty, and territorial integrity in any circumstances, while maintaining political stability, social order, security, safety, and public safety so that people, businesses, and investors can feel secure in living, working, and expanding production and business.

Strengthen internal solidarity and unity; continue to be more resolute in resolving outstanding and long-standing issues; tighten administrative discipline and order, promote administrative reform, and improve the investment and business environment.

Persistently and resolutely implement the foreign policy of diversification and multilateralization, be a good friend, a reliable partner and an active and responsible member of the international community, integrate deeply, effectively and substantially into the international community for the goal of preserving a peaceful, cooperative and developing environment in the region and the world, gain support from international friends, and build an independent and self-reliant economy.

Regarding specific tasks, the Prime Minister stated that ministers, heads of sectors, and heads of ministerial-level agencies need to focus on promoting the disbursement of public investment capital and ODA capital. This has not improved significantly in the first quarter. Continue to review and remove difficulties and obstacles in institutions, mechanisms, and public investment policies. Public investment must definitely not be fragmented, divided, spread out, prolonged, wasting time, increasing administrative procedures, and reducing investment efficiency. The Prime Minister also requested news agencies and the press to participate more actively and strongly in this content.

At the same time, resolutely direct the implementation of rapid recovery and sustainable development programs according to the Resolutions of the National Assembly and the Government. Focus on developing plans according to the Law on Planning, and promptly review and summarize obstacles and bottlenecks to fully and comprehensively report to the National Assembly, and propose amendments and supplements.

Ministries and sectors, according to their functions, tasks and powers, must prepare scenarios to respond to the impacts and impacts of the conflict in Ukraine and report to competent authorities when necessary.

Welcoming the recent proactive and strong involvement of the Ministry of Public Security, the Prime Minister requested that all levels and sectors be more determined in the fight against corruption and negativity, especially in the fields of bond issuance, securities, and real estate; at the same time, strengthen supervision, inspection, examination, prevention, and detection of violations and problems in institutions, mechanisms, and policies for amendment and supplementation.

Additional 2021 review with more positive results

Also at the meeting, the Government discussed the supplementary assessment report on the results of the implementation of the socio-economic development plan, state budget estimates, and public investment plan for 2021. At the 2nd Session of the 15th National Assembly (October 2021), the Government reported to the National Assembly on this issue.

After having full information for 2021, the Supplementary and Re-evaluation Report shows many positive points in many areas. Notably, inflation was controlled at a low level (the average CPI for the whole year increased by only 1.84%, the lowest since 2016, the number reported to the National Assembly was below 4%); State budget revenue achieved positive results (an increase of nearly 202.9 trillion VND compared to the reported number); trade surplus reached more than 4 billion USD (the reported number was a trade deficit of about 2 billion USD); foreign direct investment (FDI) attraction grew strongly by 25.2% (the reported number decreased by 0.2-3.4%)... However, some indicators decreased compared to the National Assembly report such as GDP increased by only 2.58% (lower than the reported number of 3-3.5%)...

The Prime Minister assigned the Minister of Planning and Investment and the Minister of Finance, authorized by the Prime Minister, to represent the Government in submitting to the National Assembly Standing Committee and the National Assembly according to regulations; clarify the contents and data that have changed compared to the report; and clearly analyze the causes.