Renewing traditional growth drivers
Ms. Nguyen Thi Huong - General Director of the General Statistics Office - informed that in the context of the unpredictable fluctuations in the world economic and political situation, with the participation of the entire political system, the timely, drastic and close direction and management of the Government, the Prime Minister and the efforts of all levels, sectors, localities, the business community and people nationwide, in 2024, our country's economy will achieve a growth rate of 7.09%, exceeding the set target of 6-6.5%.
Growth has gradually improved month by month and quarter by quarter, inflation is lower than the target, major balances are ensured, results in many important areas have met and exceeded the set targets, which are bright spots in economic growth in the region and the world.
According to data released by the General Statistics Office on January 6, GDP in the fourth quarter of 2024 is estimated to increase by 7.55% over the same period last year.GDP in 2024 is estimated to increase by 7.09% over the previous year, only lower than the growth rates of 2018, 2019 and 2022 in the period 2011-2024.
Director General Nguyen Thi Huong said that the positive results of 2024 are an important premise for the economy to accelerate and reach the finish line in 2025, completing the highest goals in the 5-year socio-economic development plan for the 2021-2025 period.
Speaking to Lao Dong, Dr. Nguyen Quoc Viet - Deputy Director of the Vietnam Institute for Economic and Policy Research (VEPR) - said that the Government has clearly recognized that in the remaining period of this term (until 2025) and in the next term, it is necessary to focus on strongly promoting these growth drivers, especially focusing on investment. In particular, promoting public investment will be a solid foundation for growth.
“Despite many difficulties, promoting private investment will play an important role, helping to create momentum for sustainable economic development. I believe that private investment will become a key factor in Vietnam's economic development policy in 2025 and the following years, bringing great opportunities for the country's prosperity. To promote private investment, in the context of difficulties and limitations in economic stimulus packages, the Government needs to implement price stabilization programs, promote high-quality Vietnamese goods and meet international standards. These policies will help Vietnamese enterprises improve their competitiveness, not only serving the domestic market but also exporting. Policies to support private enterprises need to be substantive, both promoting supply and supporting demand, helping to reduce product costs and increase domestic value in exports,” Dr. Nguyen Quoc Viet assessed.
Removing institutional bottlenecks
According to experts, to continue the growth momentum of 2024 and accelerate strongly in 2025, in addition to promoting public investment and private investment and maintaining the development momentum of import-export activities, it is necessary to continue to promote the removal of institutional "bottlenecks" and have flexible and timely response policies to the domestic situation.
Dr. Can Van Luc said that it is necessary to be determined to quickly, neatly and effectively implement two major policies of the Party and the State: institutional breakthrough and revolution in streamlining the organizational apparatus. There must be a real breakthrough, from the stage of law making to the stage of law enforcement and supervision.
"International experience shows that when we have good institutional reforms, economic growth will be very positive. Therefore, I think we also need to better exploit this new growth resource," Dr. Can Van Luc suggested.
Dr. Nguyen Dinh Cung - former Director of the Central Institute for Economic Management - said that to achieve the GDP growth target in 2025, drastic solutions are needed to reform institutions and improve the business environment. This expert also said that it is necessary to strongly decentralize and delegate power to local governments, creating a driving force for healthy competition among localities in attracting investment and promoting economic development.
Private economic development promotes growth
According to Dr. Can Van Luc - BIDV Training and Research Institute, the private economic sector is an important factor in promoting growth in the coming period. Therefore, it is expected that the Central Government will soon direct the review, revision, and even promulgation of a new strategy on private economic development in the current context. At the same time, it is necessary to review laws supporting small and medium enterprises because this is a large force, accounting for 97 - 98% of the total number of enterprises in Vietnam.
"The corporate income tax should be reduced from 20% to 17% for medium-sized enterprises and to 15% for small enterprises. Only by developing this sector can the private economy contribute 60-65% as set out in the orientation," said Dr. Can Van Luc.
* In 2025, the National Assembly assigned the Government an economic growth target of 6.5-7%, striving for 7-7.5%. The Prime Minister sent a strong message in Official Dispatch 137/CD-TTg with the goal of accelerating and breaking through towards a growth rate of over 8% and expecting to achieve double-digit growth in the coming period. To achieve the target, it requires great efforts from the entire political system with solutions to renew traditional growth drivers in addition to solutions to promote new growth drivers.
