PM urges IMF to continue supporting Việt Nam's macroeconomic development

Prime Minister Phạm Minh Chính (R) and head of the International Monetary Fund (IMF)'s 2024 Article IV Mission to Việt Nam Paulo Medas. VNA/VNS Photo

The government leader highly appreciated the IMF's valuable assessments, forecasts and recommendations regarding Việt Nam's economic situation for 2024, as well as the prospects and risks for 2025. He affirmed that the IMF's views are critical for Việt Nam in formulating macroeconomic management policies.

According to the PM, despite substantial external pressures, Việt Nam has achieved significant socio-economic results, especially in public investment, foreign direct investment (FDI), state budget revenue, monetary and fiscal policies, and foreign trade.

The Vietnamese Government is taking suitable policy response, prioritising growth, and boosting production, and business activities, he said, adding efforts are also being made to reduce lending interest rates, issue bonds for strategic infrastructure projects, and provide tax and fee reductions for businesses, as well as well managing exchange rates, controlling inflation, ensuring food and energy supply, persifying markets, and building financial centres.

The leader reaffirmed Việt Nam’s commitment to restructuring the economy with a focus on rapid and sustainable growth driven by science, technology, and innovation. The Vietnamese Government aims to enhance labour productivity, pursue three key breakthroughs in institutions, infrastructure, and human resources; remove institutional barriers to mobilise development resources; renew traditional growth drivers and promote new ones for higher growth targets in the coming decades.

Appreciating the practical and effective cooperation between Việt Nam and the IMF, including the valuable recommendations from the IMF’s Article IV Mission, PM Chính called on the organisation to continue macroeconomic policy advice for and dialogues with Việt Nam in the coming time.

For his part, Medas stressed that the IMF recognises Việt Nam’s impressive development achievements over the past years, despite various global shocks. He commended Việt Nam for its strong performance in 2024, noting that the country is among the fastest-growing economies in the world, with robust exports and strong foreign investment inflows.

He highlighted the effectiveness of Việt Nam's macroeconomic management, especially in keeping inflation within targeted levels, which has contributed to Việt Nam’s impressive growth compared to the rest of the world.

However, the official noted that Việt Nam still faces significant external challenges, such as the rising trend of protectionism which could negatively affect the global economy, and various uncertainties in financial markets that may expose emerging economies to greater risks.

Medas further said that investors are very interested in Việt Nam, particularly the country’s bond market. He suggested Việt Nam has considerable fiscal space to support economic growth and recommended the country to continue to proactively manage external risks, strengthen the capacity, stability and soundness of its banking system and capital markets.

Việt Nam should continue economic reforms to boost productivity, ensure long-term, sustainable growth, and well control risks, he said, stressed the importance of creating a favourable environment for investors. He also assured that the IMF would continue to assist Việt Nam in its economic development efforts.