Disbursement of public investment capital sprints to the finish line
In 2024, Vietnam's economy witnessed many breakthroughs. First of all, it is necessary to mention the drastic management of the Party, State and Government, especially in removing difficulties for disbursing public investment capital. Export turnover grew strongly in the first 11 months of the year, surpassing 2023 and almost equal to 2022.
Second, investment capital flows, especially foreign direct investment (FDI), have shown signs of positive recovery. Of which, FDI disbursement recorded over 21 billion USD in the past 11 months.
The biggest problem is still the disbursement of investment capital. The disbursement rate of investment capital implemented from the State budget in the first 11 months of the year only reached 73.5% compared to the 2024 plan. A series of solutions are being implemented for ministries, branches and localities to "sprint" to the finish line. Achieving the planned target for the whole year is a challenge, but localities, especially key localities such as Hanoi and Ho Chi Minh City, have committed to speeding up the progress and achieving the disbursement level according to the plan.
In Resolution No. 233/NQ-CP of the recent regular Government meeting, the Government requested to continue to prioritize promoting growth associated with maintaining macroeconomic stability, controlling inflation, ensuring major balances of the economy, determined to complete the socio-economic development plan in 2024 to the highest level, creating momentum for acceleration, breakthrough, striving to achieve the growth target of 8% in 2025.
Regarding the work from now until the end of the year and early 2025, Politburo member and Prime Minister Pham Minh Chinh said that we must simultaneously carry out three major groups of tasks, including many difficult, complicated, and sensitive tasks: Focus on accelerating, breaking through, and reaching the finish line in 2024; focus on streamlining the apparatus to be lean, effective, and efficient, associated with restructuring and improving the quality of the staff, civil servants, and public employees; summarize the work in 2024 and develop an action plan for 2025.
The Prime Minister clearly stated the goal of completing all 15/15 targets of 2024, in which, striving for GDP growth in the fourth quarter to reach about 7.5%, the whole year of 2024 to reach over 7%; maintaining momentum, keeping pace to accelerate, make a breakthrough, striving to achieve a growth rate of about 8% in 2025, creating momentum, creating force, creating a position for the period 2026 - 2030 to have double-digit growth.
The Head of Government has requested the State Bank of Vietnam to preside over and coordinate with ministries, branches and localities to proactively monitor developments and the world and domestic economic situation to proactively and flexibly manage monetary policy...
Direct credit institutions to proactively plan capital mobilization and balance capital sources to meet credit capital needs for production, business and consumption development at the end of the year and the Lunar New Year 2025; direct credit to production and business sectors, priority sectors and economic growth drivers, and strictly control credit in sectors with potential risks.
Targeting 8% GDP growth in 2025
Regarding the 2025 plan target, the National Assembly has issued a Resolution on the 2025 socio-economic development plan; in which, the economic growth target is set at 6.5-7%. Ministries, branches and localities strive to achieve 7-7.5%. The Prime Minister has directed more strongly, setting a target of 8% in 2025.
With the target of 8% GDP growth, delegate Nguyen Thi Viet Nga (Hai Duong delegation) said that Vietnam has many opportunities to achieve it. Exports are expected to continue to grow thanks to the system of free trade agreements (FTAs), especially new-generation FTAs. The government is also promoting the attraction of high-quality FDI into new industries (such as semiconductors, artificial intelligence). According to the delegate, digital transformation and artificial intelligence will be important growth drivers.
Regarding the GDP growth target of 8% in 2025, Deputy Minister of Planning and Investment Tran Quoc Phuong said that there are many new factors with fundamental changes, especially institutional changes approved by the National Assembly at the 8th Session with many laws passed.
“These laws will take effect from the beginning of 2025, a time when they can stimulate growth by releasing long-standing stagnant resources that will contribute largely to growth from 2025,” said Deputy Minister Tran Quoc Phuong.
