The government seeks approval for revised GDP, CPI targets

Minister of Planning and Investment Nguyen Chi Dung, authorized by the Prime Minister, presented the report. Photo: Quochoi.vn

On February 12^th, during the opening session of the 9th Extraordinary Session of the National Assembly, Minister of Planning and Investment Nguyen Chi Dung, on behalf of the Prime Minister, presented a proposal for socio-economic development in 2025, targeting a GDP growth rate of 8% or higher.

The report highlighted Vietnam's successful and comprehensive achievement of its socio-economic development goals in 2024, attributed to the strong determination, significant efforts, and decisive actions of the entire political system.

The nation met and exceeded all 15 key targets, with 12 surpassing expectations. Many crucial indicators achieved remarkable results, exceeding initial estimates reported to the Central Committee and the National Assembly, earning high praise from the public and the international community.

For 2025, the Minister of Planning and Investment acknowledged the interwoven opportunities, advantages, challenges, and difficulties, noting that the latter may have a significant impact on Vietnam's economy.

However, within these challenges, new opportunities may arise, requiring proactive efforts to seize and maximize all available opportunities and resources for growth and development.

National Assembly delegates attending the meeting. Photo: Quochoi.vn

Given the year's particular importance, the government's proposal emphasizes the need for national GDP growth to reach 8% or higher, contributing to a solid foundation for achieving double-digit growth in the foreseeable future (starting in 2026).

This rapid growth must be sustainable, maintaining macroeconomic stability, controlling inflation, ensuring major balances, and promoting harmonious development between the economy, society, and environmental protection, while safeguarding national defense and security.

Consequently, the government is submitting to the National Assembly for consideration and approval the adjustment of several key targets: GDP growth rate of 8% or higher; average Consumer Price Index (CPI) growth rate of approximately 4.5-5%.

If necessary, the government may allow the state budget deficit to increase to approximately 4-4.5% of GDP to mobilize resources for development investment.

Public debt, government debt, and external debt may reach or exceed the warning threshold of approximately 5% of GDP.

Chairman of the Economic Committee Vu Hong Thanh presents the audit report. Photo: Quochoi.vn

The National Assembly's Economic Committee generally agreed with the goals, requirements, and economic growth scenario for 2025 presented by the government.

Regarding the adjusted targets, Committee Chairman Vu Hong Thanh stated that adjusting the CPI target is necessary to create space in fiscal and monetary policy management to support and stimulate economic growth.

However, inflation is a crucial indicator that directly affects macroeconomic stability, people's lives, and business costs.

Therefore, the Economic Committee requested the government to implement appropriate inflation control measures aligned with growth targets and macroeconomic stability.

Concerning the proposed adjustments to the budget deficit and public debt targets, the Economic Committee urged the government to use resources effectively and comply with the provisions of the law on state budget and the law on public debt management. It emphasized the need for decisive action to ensure that the budget deficit and public debt remain within the limits set by Resolution No. 23/2021/QH15 and Resolution No. 159/2024/QH15.

Adjustments should only be made after all other solutions have been exhausted and must ensure public debt safety, debt repayment capacity, and especially the government's debt service ratio to total budget revenue.

Furthermore, Chairman Vu Hong Thanh highlighted several tasks and solutions to achieve the new growth target.

The inspection agency emphasized that public investment in 2025 is a pillar of growth, requiring specific solutions and assigned responsibilities to reform public investment management.

The government needs to ensure disbursement of the allocated and additional public investment capital, given that investment disbursement has been a persistent weakness for many years.

Regarding monetary and fiscal policies, the Economic Committee noted the need for additional specific monetary and fiscal policies to support purchasing power, stimulate consumer spending, and boost domestic tourism.

According to the session's agenda, the National Assembly will hold group discussions on the proposal on the afternoon of February 14, 2025, and plenary discussions on the afternoon of February 15, 2025.

The National Assembly will vote to approve the Resolution on supplementing the socio-economic development plan for 2025 with the target of achieving 8% or higher growth on the morning of February 19, 2025.