Illustrative image (Source: VNA)

According to the General Statistics Office (GSO), industrial production continues its positive growth pace. The index of industrial production (IIP) in the first four months of 2024 expanded by 6% against that in the same period of 2023.

In the period, disbursed investment capital from the state budget reached 20.1% of the yearly plan, up 5.9% year-on-year, while disbursed foreign direct investment (FDI) reached 6.28 billion USD, up 7.4% year-on-year. This capital injection acts as a catalyst to activate and attract more investment from the private sector.

Retail sales and services revenue totalled 2.06 quadrillion VND (81.06 billion VND), up 8.5% year-on-year. Notably, revenue from accommodation and catering services was estimated at 237.3 trillion VND, up 15.3% year-on-year, while tourism revenue hit 19.4 trillion VND, representing an increase of 49.3% from the corresponding time last year.

In the period, the country’s import-export revenue reached 238.88 billion USD, with trade surplus reaching 8.4 billion USD, higher than the 7.66 billion USD recorded in the same period last year. Of the total, the export turnover hit 123.6 billion USD, up 15% year-on-year.

These above figures showed that most of the economy’s pillars have achieved remarkable results, contributing positively to the overall growth, while inflation continues to be effectively controlled.

However, some shortcomings have surfaced that need to be promptly overcome, as the world economy faces instability. The US economy, an important partner of Vietnam, slowed in the first quarter of 2024, with its growth much lower than previous forecasts. The increase in the VND/USD exchange rate creates inflationary pressure and can inhibit economic growth. Therefore, the domestic economy is forecast to maintain the recovery process in the second quarter of 2024, but be slow to make a strong breakthrough as desired.

To help the national economy sail through headwinds and recover quickly and sustainably, former GSO General Director Nguyen Bich Lam suggested the Government and localities focus on boosting domestic consumption, raise service quality, and reduce airfares to promote domestic tourism and attract more international visitors.

Economists also proposed the roll-out of preferential credit packages for major sectors, and tax incentives, the completion of legal documents on exports and imports, trade promotion activities, and market diversification.

Businesses should bring into full play opportunities and commitments of trade agreements to boost exports, keep updated on market information, and seek new orders and markets, they said.

Lam held that the Government should implement flexible fiscal and monetary policies and work to reduce monetary inflation pressure on the economy, adjust exchange rates to stabilise the price of imported raw materials, and improve the competitiveness of home-made products.

On May 2, Prime Minister Pham Minh Chinh issued Directive No.14/CT-TTg on implementing the task of operating monetary policy in 2024, with a focus on removing difficulties for production and business, and promoting growth and macroeconomic stability.

The leader requested increased access and absorption of credit, especially for small- and medium-sized enterprises, expansion of traditional and new growth drivers, a reduction in lending interest rates to a reasonable level, and a cut to administrative procedures.