Prioritize stimulating domestic consumption to promote economic growth in 2024

VCN - According to General Director of the General Statistics Office Nguyen Thi Huong, in the context of many difficulties in the world economy, the export growth rate is slowing down, many businesses are facing a shortage of orders..., priority should be given to stimulating demand. Domestic consumption is considered an important solution to promote economic growth in 2024.
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Prioritize stimulating domestic consumption to promote economic growth in 2024

Could you please evaluate the socio-economic situation in the first 6 months of the year?

In the first 6 months of 2024, our country's socio-economic situation maintains a positive trend, the next quarter is better than the previous quarter; industries and fields achieve many important results, creating growth momentum for the following quarters. Specifically, economic growth improved with an increase of 6.42% (of which the second quarter increased by 6.93%). Industrial production continues its positive recovery trend with the production index of each month higher than the previous month, and the next quarter higher than the previous quarter.

The industrial production index increased by 7.7% over the same period last year, of which the processing and manufacturing industry increased by 8.5%; The electricity production and distribution industry increased by 13%, thereby meeting the electricity demand for production, business and consumption. Along with that, the tourism industry maintains a high growth rate with promoted tourism promotion programs.

Total preliminary import and export turnover of goods reached USD 368.53 billion, up 15.7% over the same period last year, of which exports increased 14.5% and imports increased 17%. The trade balance of goods is estimated to have a trade surplus of USD 11.63 billion (same period last year, trade surplus was USD 13.44 billion), contributing to creating motivation for production and stimulating exports.

Besides, the increase in investment capital attraction also reflects the recovery of production and business activities. Newly registered FDI capital increased compared to the same period last year, which shows that foreign investors continue to trust in Vietnam's investment environment. Realized social investment capital at current prices is estimated at VND 1,451.3 trillion, up 6.8% over the same period last year, of which the first quarter reached VND 617.1 trillion, up 5.8%. ; Q2 reached VND 834.3 trillion, an increase of 7.5%.

Production and business activities of enterprises gradually recovered after many months of difficulties, the number of enterprises entering the market continued to be higher than the number of enterprises withdrawing from the market. The prosperous economic growth has had a positive impact on state budget revenue, thanks to which state budget revenue in the first 6 months of 2024 is estimated to reach VND 1,020.6 trillion, equal to 60% of the yearly estimate and an increase of 15.7 % compared to the same period last year…

The total import and export turnover of goods in the first 6 months of 2024 recorded an increase of 15.7% over the same period last year. How will this result help create momentum for economic growth in the second half of the year, Madam?

In 6 months, Vietnam's export activities have had many positive results, the export turnover of goods is estimated at USD 190.08 billion (up 14.5% over the same period), the trade surplus of goods is estimated at USD 11 .63 billion in 6 months.

In terms of export structure, the group of processed industrial goods reached USD 166.8 billion, accounting for 87.7%, growing 13.9% over the same period in 2023, of which, exports of all types of phones and components accounted for 14.3% of the structure, growing by 11.3%. This is a positive sign, showing that many new export orders have increased in the past 6 months, which is consistent with the PMI index's slight increase above the 50-point threshold in the last 2 months.

It can be seen that increased export of goods has strongly promoted industrial production and processing activities. Industrial production activities have flourished in recent months, following the trend of each month being higher than the previous month and the next quarter being better than the previous quarter.

In addition to having a positive impact on GDP growth, export growth also contributes greatly to economic restructuring by creating jobs for millions of workers and helping to stimulate equipment and technology of production. Exporting not only helps Vietnam earn foreign currency for imports but also helps Vietnam increase capital accumulation and improve people's living standards.

To promote economic growth in the last 6 months of the year, achieving the growth target for the whole year 2024, what solutions do you think need to focus on implementing?

Based on developments in the world situation, positive results of domestic economic activities in the first 6 months of the year and some of the above difficulties and challenges, the General Statistics Office believes that Vietnam is capable of achieving its growth target for the whole year of 2024 in the range of 6-6.5%.

However, to achieve the upper growth rate of about 6.5%, the domestic economy still faces many difficulties and challenges. The General Statistics Office recommends that the Government strongly promote the chain model of agricultural production development associated with industry and export; strengthen circulation and production, promote chain links to connect supply and demand chains; ensuring product distribution associated with quality management and food safety.

At the same time, continue to review and drastically implement solutions and policies to support businesses to remove difficulties and obstacles, promote operations, production and business, especially key industrial products such as: textiles, footwear, electronics...

In particular, in the context of many difficulties in the world economy, with export growth slowing down, many businesses facing a shortage of orders..., prioritizing stimulating domestic consumption is considered an important solution to promote economic growth in 2024.

To stimulate consumer demand, the Government, ministries, branches and localities need to synchronously implement solutions such as: reducing prices of consumer goods; salary increase adjustment; reduce personal and corporate income taxes; increase consumer loans, at the same time extend and freeze debt and increase social security supports, especially direct subsidies for the poor, expand unemployment insurance, and reduce tuition and hospital fees.

Besides, continuing to implement the VAT reduction policy to stimulate consumers to shop more, production and business enterprises will have better capital turnover; at the same time, boost domestic purchasing power by effectively implementing domestic market trade promotion programs, promoting goods distribution via digital platforms and e-commerce to expand domestic consumption.

Besides, I think that public investment is still an important driving force to stimulate growth in aggregate demand while increasing the internal strength of the economy. To promote disbursement of public investment, "bottlenecks" in financial procedures, flexible and quick cooperation between ministries, localities, and investors need to be further promoted in the last months of 2024. ...

By Xuan Thao/Bui Diep

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