Prime Minister Pham Minh Chinh: Prioritize growth as high as possible, control inflation well

On the morning of June 1, Prime Minister Pham Minh Chinh chaired the regular Government meeting for May 2024, discussing many important contents.

Also attending the meeting were Deputy Prime Ministers, members of the Government, leaders of ministries, ministerial-level agencies, and agencies under the Government, Comrade Dinh Van An, Assistant to the General Secretary, leaders of the Central Economic Commission, the Economic Committee, the Finance and Budget Committee of the National Assembly, and the Office of the National Assembly.

The meeting focused on discussing the socio-economic situation in May and the first five months of the year, the implementation of three national target programs, disbursement of public investment capital; key directions and management in June and the coming time.

The reports and opinions at the meeting unanimously assessed the direction and operation work.Since the beginning of the year, all levels, sectors and localities have closely followed, focused on proactively, resolutely and flexibly implementing tasks and solutions according to resolutions and conclusions of the Central Committee, Politburo, Secretariat, National Assembly, Government, and directions of the Prime Minister and Deputy Prime Ministers.

The Government has carefully prepared and ensured the progress and quality of documents for the 7th Session of the 15th National Assembly (up to now, 53 submissions, reports, and documents have been sent to the National Assembly and the National Assembly Standing Committee).

Continue to promote the work of building and perfecting institutions and organizing law enforcement, especially the requirement to build and promulgate documents detailing the implementation of the Laws: Land, Housing, Real Estate Business, Credit Institutions, etc.

In May, the Government issued 1 decree, 6 directives and 13 dispatches of the Prime Minister. In the first 5 months, 58 decrees, 103 resolutions of the Government, 529 decisions were issued, including 6 normative decisions, 18 directives and 54 dispatches of the Prime Minister.

The Government and the Prime Minister have approved the entire planning of 6 socio-economic regions; organized many meetings and conferences to remove difficulties for production and business, promote important national projects and works, develop social housing...

Focus on directing and operating resolutely, appropriately, effectively, proactively, and resolutely implementing tasks and solutions in all fields, closely following the set programs and plans; focus on renewing traditional growth drivers and focusing on promoting new growth drivers (such as digital transformation, green transformation, circular economy, sharing economy, emerging industries and fields, etc.).

At the same time, flexibly handle outstanding issues and newly arising issues; promote growth; stabilize the macro-economy; reduce and simplify administrative procedures. Respond flexibly and effectively in foreign affairs and international integration activities; maintain a peaceful and stable environment for development.

10 outstanding results in socio-economic development

The meeting also agreed that, in general, the socio-economic situation in May and the first 5 months of 2024 continued to have a positive trend, with many areas in May achieving higher results than in April and the overall 5 months being better than the same period in 2023; including 10 outstanding results.

Firstly, the economy continues to maintain positive growth momentum in all three sectors: agriculture, industry, and services, with growth being promoted.

Agricultural production developed steadily. Industrial production recovered well, increasing by 3.9% in May compared to April and 8.9% over the same period; in the first 5 months, it increased by 6.8%, of which the manufacturing and processing industry increased by 7.3%; some localities increased highly (such as Phu Tho increased by 31.2%, Bac Giang 24.9%...). The service sector continued to grow strongly: total retail sales of goods and consumer service revenue increased by 9.5% in May; in the first 5 months, it increased by 8.7%.

Second, the macro economy continues to be maintained stable, inflation is controlled, and major balances are ensured.

The consumer price index (CPI) in May increased by 0.05% compared to April; the average increase in the first 5 months was 4.03%. Exchange rates and interest rates tended to be stable. Energy and food security were ensured (rice export in the first 5 months reached 4.15 million tons, turnover reached 2.65 billion USD, up 14.7% and 38.2% respectively); the balance of labor supply and demand was basically ensured.

Third, exports continue to grow strongly in the context of global trade difficulties.

Total import-export turnover in May increased by 9.1% compared to April and by 22.6% compared to the same period; in the first 5 months, it increased by 16.6%, of which exports increased by 15.2%; imports increased by 18.2%. Fortunately, imports increased again to serve domestic production; the trade balance in May had a trade deficit of 1 billion USD, in the first 5 months, it had a trade surplus of 8.01 billion USD.

Fourth, State budget revenue increased sharply, and the State financial-budgetary situation continued to improve.

Total revenue for the first 5 months is estimated to reach 52.8% of the yearly estimate, up 14.8% over the same period. Increase revenue, save expenditure and prepare 680,000 trillion VND for salary reform. Public debt, government debt, national foreign debt and budget deficit are controlled below the prescribed limit.

Fifth, the tourism sector recovered strongly, surpassing the same period before the pandemic.International arrivals in May reached nearly 1.4 million; the total for the first 5 months reached 7.6 million, up 64.9% over the same period in 2023 and up 3.9% over the same period in 2019 before the COVID-19 pandemic.

Sixth, development investment continues to achieve positive results.

Disbursement of public investment capital in the first 5 months reached 22.3% of the plan, higher than the same period (22.2%). Social investment capital and private investment were promoted. FDI attraction reached 11 billion USD, up 2%, of which newly registered capital reached 7.9 billion USD, up 27.5%, the highest in the past 3 years; realized FDI capital reached 8.3 billion USD, up 7.8%, the highest since 2020, showing that although the fight against corruption has been promoted, investors' confidence has been consolidated and strengthened.

Seventh, business development tends to be positive.

In the 5 months, 98,800 enterprises were newly established and returned to operation, an increase of 4.1% over the same period, higher than the number of enterprises withdrawing from the market (97,300 enterprises). Many corporations and state-owned enterprises have made great efforts and improved their operations, such as the Oil and Gas Group, the Electricity Group, the Vietnam Railway Corporation, and the Vietnam Airports Corporation.

Many long-standing and difficult projects have had positive changes, such as the Lo B-O Mon project chain being promoted; the restructuring of the Nghi Son Oil Refinery has achieved positive results; in the past 3 months, the loan of 2.2 billion USD has decreased by 409 million USD to 2.2 billion USD and from now until the end of the year it may decrease by another 400-500 million USD.

Eighth, cultural and social fields are focused on; social security is ensured; people's lives are improved.

In May, 94.8% of households assessed that their income was stable or higher than the same period; nearly 18,500 tons of rice were supported; meaningful celebrations of the 70th anniversary of the historic Dien Bien Phu victory, International Labor Day, and President Ho Chi Minh's birthday were organized. Textbook prices decreased by an average of 15%.

Ninth,Administrative reform, especially cutting and simplifying administrative procedures, digital transformation, Project 06 and anti-corruption and negativity prevention have been promoted, contributing to strengthening people's trust.

Tenth,socio-political stability; national defense and security maintained; social order and safety guaranteed; foreign affairs and international integration promoted; the country's prestige and position enhanced. Many international organizations and experts continue to highly appreciate the results and prospects of Vietnam's economy.

Pressure and challenges are still great, need to maintain courage, calmness and perseverance

In his concluding remarks, Prime Minister Pham Minh Chinh basically agreed with the reports and opinions at the meeting, and assigned the Ministry of Planning and Investment and the Government Office to synthesize and complete the reports and draft Resolution of the meeting for early promulgation.

Besides the very basic results achieved, the Prime Minister pointed out,The socio-economic situation still has shortcomings, limitations, difficulties and challenges.In particular, the pressure and challenges in controlling the consumer price index, promoting growth, and stabilizing the macro economy are still great.

The production and business situation in some sectors is facing many difficulties; agriculture is facing unfavorable weather; industrial production and some service sectors have seen slow recovery in purchasing power; the issue of ensuring the supply of electricity, water, and gasoline needs to continue to be directed resolutely and regularly.

Access to credit capital is still difficult; bad debt tends to increase; the number of enterprises withdrawing from the market is still high. The real estate market has initially stabilized, but difficulties and problems are still slow to be resolved; the implementation of the 120,000 billion VND credit package for social housing has not been improved; there is still 29,100 billion VND of unallocated public investment capital.

The lives of a segment of the population are difficult. Natural disasters, epidemics, heat waves, and droughts are severe in many places. Crime, cybercrime, and information security are still complicated; there are many labor accidents, food poisoning, and serious fires and explosions.

The Prime Minister pointed out the reasons for the results achieved.Thanks to the leadership of the Central Committee, the Politburo, the Secretariat, headed by General Secretary Nguyen Phu Trong, the close and active cooperation of the National Assembly and agencies in the political system; the participation and support of the people and businesses; the cooperation and assistance of international friends; especially the drastic participation, close direction, with focus and key points of the Government, all levels, sectors and localities.

Regarding the limitations and shortcomings, in addition to objective causes, the subjective causes are that the organization of law enforcement, mechanisms and policies is still a weak link; decentralization and delegation of power in some areas are still entangled; a number of cadres and civil servants avoid, shirk, and are afraid of responsibility; the situation grasping, advising, and policy response in some cases are not yet timely, effective, and the spirit of progress, the self-reliance and self-strengthening of some agencies and units is not high...

The Prime Minister basically agreed with the lessons learned stated in the report and comments, emphasizing the experiences: It is necessary to strengthen solidarity and unity within each agency and unit, within the entire political system and the entire population; grasp the practical situation, respond to policies promptly, flexibly and effectively; strengthen discipline, order and responsibility of leaders; enhance proactiveness, creativity and ensure close and smooth coordination between ministries, branches and localities; operate without jerkiness, maintain steadfastness, calmness and perseverance; attach importance to and promote information and communication work, especially policy communication, contributing to strengthening trust, creating excitement, promoting the will to be self-reliant, self-reliant, determined and striving to rise up...

In the coming time, regarding the viewpoint of direction and management, The Prime Minister pointed out that it is necessary to continue to closely follow the Party's guidelines and policies, the State's policies and laws, and creatively and effectively apply them in implementing the Resolution of the 13th National Party Congress, resolutions and directions of the Central Committee, the Politburo, the Secretariat, and key leaders.

Promote decentralization and delegation of power; promote the spirit of proactiveness, positivity, innovation, creativity, daring to think and dare to do; grasp the situation and respond to policies promptly and effectively.

Resolutely not back down in the face of difficulties, persevere in setting goals with high determination, great effort, and more drastic and effective actions. Internal strength is fundamental, strategic, long-term, and decisive; external strength is important and breakthrough.

Strengthen solidarity and unity; maintain discipline and administrative order; promptly remove bottlenecks, difficulties and obstacles, proactively resolve them within authority, do not wait or rely on others and promptly propose and recommend issues beyond authority to promote production and business, create jobs and livelihoods for people, and develop enterprises.

In all cases, it is necessary to ensure socio-political stability; strengthen national defense and security; enhance foreign affairs and international integration, and promote information and propaganda to create social consensus and increase the confidence of the people and investors.

Mobilizing an additional 100,000 billion VND in government bonds

Regarding the main tasks and solutions,The Prime Minister requested that first of all, it is necessary to continue to prepare well for the explanation and question-and-answer session at the 7th session of the National Assembly.Urgently complete the dossiers on 5 resolutions to be submitted to the National Assembly; closely coordinate in explaining and completing dossiers and documents, ensuring quality and progress. Deputy Prime Minister Tran Hong Ha and ministers actively and thoroughly prepare to answer questions at the National Assembly.

Second, on macroeconomic direction and management,Continue to operate monetary policy proactively, flexibly, promptly and effectively; coordinate synchronously, harmoniously and closely with a reasonable, focused and key expansionary fiscal policy.

"Monetary and fiscal policies prioritize growth as high as possible, while controlling inflation according to the target of below 4.5%," the Prime Minister emphasized.

Facilitate businesses and people to access credit capital; continue to reduce lending interest rates. Continue to exempt and reduce taxes, fees, charges, and land use fees to remove difficulties for production and business activities.

Strive to increase revenue and save State budget expenditure. Soon have a plan to mobilize an additional 100,000 billion VND in government bonds for strategic infrastructure projects.

The State Bank and the Ministry of Construction immediately implemented specific solutions to promote disbursement of the 120,000 billion VND loan package for social housing.

Continue to resolutely and immediately implement solutions to stabilize the gold market according to regulations.

Third, focus on renewing traditional growth drivers and strongly promoting new growth drivers.

Regarding investment, promote the implementation of public investment projects; promote private investment; strengthen public-private cooperation; selectively attract FDI.

Regarding exports, diversifying markets, products, supply chains, consolidating traditional markets, expanding new markets (Middle East, Halal market, South America, Africa); supporting businesses to prepare conditions, meet new standards, green standards...

Regarding consumption, promote domestic consumption stimulus, promotions, the campaign "Vietnamese people prioritize using Vietnamese products", e-commerce, and cashless payments.

There are specific and effective mechanisms and policies to strongly promote new growth drivers (especially in 3 areas: (i) Institutions, mechanisms, policies; (ii) Regional economic development, regional and urban linkages; (iii) Digital transformation, green transformation, circular economy, sharing economy, knowledge economy, new industries and fields such as semiconductor chips, AI...).

Fourth, resolutely further promote disbursement of public investment capital and three national target programs.Continue to promote the activities of the Prime Minister's 5 working groups and 26 working groups of Government members, and promptly allocate the remaining 29,100 trillion VND of public investment capital.

Report to the National Assembly to allow proactive adjustment of capital plans from unallocated and slow-disbursement areas to fast-disbursement areas in need of additional capital; strive to disburse over 95% of the assigned plan. Timely handle difficulties and obstacles, speed up the progress of important and key national infrastructure projects.

Fifth, focus on perfecting institutions and laws, reforming administrative procedures, and promoting national digital transformation.. Urgently and promptly issue complete and timely decrees, circulars, and guiding documents to ensure their simultaneous effectiveness with the Land Law, Housing Law, Real Estate Business Law, and Credit Institutions Law, etc.

Resolutely cut and simplify administrative procedures; promote digital transformation, promote Project 06, and build a National Data Center.

Urgently issue the Plan to implement the issued plans, especially the VIII power plan, regional plans, and provincial plans. Focus on completing the approval of the remaining plans (Hanoi, Ho Chi Minh City, Dong Nai, Binh Duong...)

Emphasizing that institutions, mechanisms and policies are resources, the Prime Minister said that a Steering Committee to review legal problems will soon be established (with the Prime Minister as Chairman and Government members as members).

Along with that, it is proposed to report to the National Assembly at the 8th session to issue a law amending many laws to remove difficulties and obstacles in various fields. Ministers and heads of sectors continue to preside over the review and removal of legal difficulties and obstacles according to the management fields.

Sixth, focus on developing key industries and fields.

Regarding industry, focus on removing difficulties, promoting manufacturing and processing industries, and supporting industries; speed up the progress of large-scale, high-tech projects with strong spillover effects; ensure adequate supply of electricity and gasoline in all situations; urgently submit for promulgation 3 decrees on: direct electricity trading mechanism, on self-produced and self-consumed rooftop solar power, and on the mechanism for developing power projects using natural gas and LNG.

Regarding agriculture, take advantage of opportunities to export agricultural products; promptly remove the "yellow card" (IUU); regulate and ensure enough water for agriculture, electricity production, and people's daily life; effectively organize and implement forest fire prevention and control with the motto "4 on-the-spot".

Regarding services and tourism, strongly develop service industries with potential and advantages, apply high technology; reduce transportation and logistics costs; promote tourism attraction, strengthen price management and service quality, especially in the upcoming summer tourist season.

Continue to handle outstanding and long-standing issues, such as Phuong Nam Pulp Mill, Dung Quat Shipbuilding Company, Viet-China Steel Mill, Thai Nguyen Steel Mill Phase 2, Bach Mai Hospital project and Viet Duc Hospital Facility 2 project.

Seventh, focus on cultural, social and environmental fields; ensure social security and people's lives.Prepare for salary reform according to the resolutions of the Central Committee and the National Assembly on the principles of ensuring fairness, equality, harmony and stability; propose the most suitable plan to be implemented from July 1, 2024 on issues related to salary scales, basic salaries and specific policies.

Do a good job in medical examination and treatment, ensure medicine; prevent drowning, especially in children; organize the high school graduation exam and university and college entrance exam in 2024 well. Urgently complete the national target program on culture to submit to the National Assembly.

Along with that, the Prime Minister requested strengthening national defense and security; ensuring security and order, preventing crime; and preventing corruption and negativity.

Carefully, practically and effectively implement foreign affairs activities of senior leaders; promptly concretize and effectively exploit international treaties and agreements.

Strengthen information and communication work, create social consensus, consolidate and strengthen the trust of people, businesses and investors, and at the same time point out what has not been done so that we can work together and make efforts. Actively implement the tasks of the 14th Party Congress Socio-Economic Subcommittee, ensuring progress and quality.

Giving specific comments on the proposals and recommendations of ministries and branches, the Prime Minister also assigned the Ministry of Health to preside over the launching of an emulation movement on maintaining public hygiene; the Ministry of Construction to preside over the organization of a conference on cement production and consumption and promoting the development of social housing.