Deputy Minister of Planning and Investment Tran Quoc Phuong: Considering every opportunity to achieve your goals at the best level

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Deputy Minister of Planning and Investment Tran Quoc Phuong

In a difficult context, Vietnam's economy has achieved many impressive results in recent times, but many opinions say that some of our indicators are quite low, such as the six-month GDP only reaching 3.72%, which is quite far from the target set for the whole year 2023 of 6.5%. This raises the question: should we adjust our year-end goal or continue to work toward achieving this goal?

Deputy Minister Mr Tran Quoc Phuong:

Indeed, the GDP results in the first six months of the year are quite far from the target set by the Government, and this poses a very heavy task in the last months of the year. Because we want to achieve an average growth rate of 6.5% in 2023, the third and fourth quarters need to grow by approximately 9%. However, reports from the Ministry of Planning and Investment all confirm that this is an extremely heavy and challenging task, but we need to be steadfast and strive to achieve the best results in the current difficult context.

The objective factor is very large when analyzing factors affecting economic growth in 2023. In particular, going deeper into the analysis of the GDP growth structure, the industrial sector - the main sector of our country's economy - is the most heavily affected. This clearly shows the influence of world demand on import-export activities and production and business activities of enterprises. Most large enterprises in processing, manufacturing, and electronics that rely heavily on the consumption markets of major economies have suffered sharp declines. Some markets even decreased by up to 60%. In a difficult context, the agricultural sector continues to be a very important pillar with very good growth.

Along with that is the strong recovery of the tourism service sector. These two areas have greatly supported the industrial sector in the overall structure of GDP growth. We must make the most of every opportunity to achieve our goals at the best level. Businesses are meticulous about each order and do not miss a single order.

Could you please tell us more about the challenges and opportunities we can take advantage of in the last months of the year?

Deputy Minister Mr Tran Quoc Phuong:

First, although difficulties still exist, they are gradually making positive changes. The inflation and interest rate adjustment plans of the FED and major central banks in Europe have extended the time and amplitude of their interest rate increases compared to before. Although this is a challenge, it also shows opportunities and prospects.

Second, global aggregate demand is low; there are signs that spending is gradually increasing. Businesses are starting to receive orders again, although on a small scale, but also show a restart in the world's aggregate demand. In addition, it is necessary to take advantage of new-generation FTAs, especially expanding new markets and closely following traditional markets, to take advantage of opportunities when there are signs of recovery.

Third, in terms of investment, the shift in world investment capital flows also shows many opportunities to attract investment to Vietnam. Opinions of international experts and organizations are very positive about the Vietnamese market. Vietnam is a good destination and always on the list to consider when expanding or making new investments. We need to maintain this issue to become an attractive market that attracts large investors, even in difficult contexts like now.

In your opinion, what solutions do we need to implement To achieve the highest growth target this year?

Deputy Minister Tran Quoc Phuong:

Recently, the Government issued Resolution No. 105/NQ-CP on tasks and solutions to remove difficulties for production and business, continue to promote administrative procedure reform, and tighten discipline, having concretized and removed difficulties to promote growth, promote discipline, strengthen administrative reform and the goal is to improve the business investment environment.

In the coming time, it must be affirmed that we must maintain macroeconomic stability and control inflation. This is a core factor; however, there is a new point in Resolution No. 105/NQ-CP: there is flexibility between the two goals of macroeconomic stability and inflation to promote growth. Specifically, Resolution No. 105/NQ-CP has set a priority goal of promoting growth in the context of continuing to maintain macroeconomic stability and control inflation because analyzing the macroeconomic situation of Vietnam shows that we have effectively controlled inflation. This has created a good foundation to give more priority to the goal of promoting growth and trying to achieve the highest possible target.

The second group of solutions is that we must promote production and business, in which the market factor is very important. Besides encouraging and recommending businesses to find new markets to export new products and orders, there is a very central and important content promoting domestic market development - a market that is assessed to be a potential and large scale. If we focus on developing the domestic market, it will stimulate domestic demand as well as domestic consumption and thereby stimulate production and business. Of course, the products serving the domestic market will be different from the products serving exports, but there are certain coincidences: large export enterprises are having difficulty because international orders may turn to finding for domestic orders.

The third group of solutions is a group of solutions on administrative reform and business environment improvement. This has been a continuous task from the past until now when we have had separate Resolutions of the Government, such as Resolution 02 and have now been merged into Resolution 01. The contents of administrative reform and environmental improvement Business schools are important contents that the Government has set, intending to create a truly attractive business investment environment to attract investment in a difficult context.

This is both a short-term and long-term solution. The short term is to improve the efficiency of state management, the longer term is to attract many important large investment projects, serving long-term growth.

The fourth group of solutions is a new point in Resolution No. 105/NQ-CP, which is overcoming the situation of pushing, avoiding responsibility, and daring to endure among civil servants. This is a new and extremely difficult task, not simply technical but psychological solutions.

The analysis above shows that many solutions have been and are being implemented, and the falling point is the last months of the year. Furthermore, Resolution No. 105/NQ-CP, with six viewpoints, three goals and five groups of solutions, is enough for us to implement in the last months of the year, contributing to achieving growth goals. I strongly believe in the solutions that have been proposed. If we drastically and effectively implement the solutions, the results in the last months of the year will be more positive and we will strive to reach the highest level possible in a difficult context.

Thank you very much!

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