Positive economic growth picture, good control of inflation

According to the General Statistics Office, it is likely that Vietnam will achieve its 2024 growth target of around 6-6.5% (illustrative photo). Photo: Hoang Bin

Positive growth in all 3 regions

According to the latest report of the General Statistics Office, the economy in the first months of 2024 continued to grow positively in all three sectors. In particular, the agricultural sector continued to grow steadily. The industrial sector recovered well, increasing by 0.7% in July compared to June and 11.2% over the same period; the total increase in 7 months was 8.5%. The service sector continued to grow well; total retail sales of goods and consumer service revenue increased by 9.4% in July, and by 8.7% in 7 months.

Based on the developments in the world situation and the results of domestic economic activities, if there are no major fluctuations, the General Statistics Office believes that Vietnam is likely to achieve its growth target for the whole year of 2024 in the range of 6-6.5%. However, to achieve the upper limit of growth of about 6.5%, there are still many difficulties and challenges.

To achieve the high growth target, Ms. Nguyen Thi Mai Hanh - Director of the Department of National Accounts System (General Statistics Office) recommended that industries and sectors need to closely follow the production and business situation to proactively respond to arising risks, focus on policies to remove difficulties and obstacles, free up resources for the business sector and production and business establishments, especially the processing and manufacturing industries and market service industries; The electricity industry ensures adequate supply for production and consumption.

Strengthening the connection between circulation and production, promoting chain linkage to connect supply and demand; ensuring the distribution of goods associated with quality management and food safety; Strongly promoting the chain model linking agricultural development with industry and export.

Continue to seek and actively expand product consumption markets. Build product distribution channels, expand consumption on e-commerce platforms, thereby promoting domestic consumption and export. At the same time, promote the application of high technology and digital technology to improve labor productivity, create new products to help the supporting and auxiliary industries develop. Strongly promote new growth drivers (green economy, digital economy, circular economy, knowledge economy and emerging fields such as chips, semiconductors, AI...)

The target of controlling inflation is completely feasible.

According to the General Statistics Office, domestic gasoline prices increased following world prices, increased demand for household electricity, and health insurance premiums adjusted according to the new basic salary were the main reasons for the consumer price index (CPI) in July 2024 to increase by 0.48% compared to the previous month.

On average, in the first 7 months of 2024, CPI increased by 4.12% over the same period last year; core inflation increased by 2.73%. The General Statistics Office forecasts that there are a number of favorable factors for curbing inflation in the coming time. For example, global inflation is continuing to cool down, helping Vietnam reduce pressure from the imported inflation channel. Policies on tax, fee, and land use fee exemptions, reductions, and extensions in the last months of the year contribute to reducing production costs and prices of consumer goods and services.

The General Statistics Office assesses that the ability to achieve the inflation control target set by the National Assembly for this year is feasible. To control inflation in the remaining months of the year, Ms. Nguyen Thu Oanh - Director of the Price Statistics Department (General Statistics Office) recommends proactively monitoring economic developments, prices of strategic goods in the world market, developments of conflicts, geopolitical tensions to promptly warn of risks affecting the price level of goods and services in the country. Ensure smooth supply, circulation, and distribution of goods and services, especially for petroleum and strategic goods that are likely to be affected by disruptions in the global supply chain.

"Regarding the price increase of goods and services managed by the State, it is not advisable to adjust many types of prices at the same time, and it should not be concentrated at the end of the year, when consumer demand is high, because when the consumer price index continuously increases, it will create high expected inflation and create pressure to control inflation for 2025. In addition, it is necessary to continue to operate monetary policy proactively, flexibly, cautiously, and closely coordinate with fiscal policy and other macroeconomic policies to control inflation according to the set target," said Ms. Nguyen Thu Oanh.

Source: https://laodong.vn/kinh-doanh/buc-tranh-tang-truong-kinh-te-tich-cuc-kiem-soat-tot-lam-phat-1386830.ldo