8 socio-economic difficulties Vietnam faces in 2024

On October 9, the National Assembly Standing Committee commented on the Government's Report on the results of the implementation of the 2024 socio-economic development plan; the projected socio-economic development plan for 2025. Mr. Vu Hong Thanh, Chairman of the National Assembly's Economic Committee, stated: The Standing Committee of the Economic Committee requested to pay more attention and evaluate a number of issues. Accordingly, first, the total demand recovery was weak, in which consumer demand increased lower than expected in the context of inflation under more pressure in the last months of the year, public investment and private investment increased slowly; the service trade deficit has not improved. In the first 9 months of 2024, total retail sales of goods and consumer service revenue (excluding price factors) increased by 5.8%, lower than the 7.8% increase in the same period in 2023. There are still 31/44 ministries, central agencies and 28/63 localities with public investment disbursement rates in the first 8 months of 2024 below the national average. The Government is requested to clarify the causes and have effective solutions to accelerate public investment disbursement and promote economic growth.

Second, production and business activities of enterprises still face many difficulties. In the first 9 months of 2024, on average, 18,200 enterprises withdrew from the market per month. The ratio of enterprises withdrawing from the market to the number of enterprises entering and re-entering the market in the first 9 months of 2024 was 89.7%, higher than the 79.3% of 2023.

Third, the financial and monetary markets still face challenges, with high levels of bad debt, slow handling of weak banks, low credit growth in the first months of the year, and limited ability for businesses to absorb capital and access credit. Exchange rates have experienced unusual fluctuations that have affected business operations; gold market management still has many shortcomings, putting pressure on the foreign exchange market and exchange rates. Cyber security risks to the Vietnamese financial system have become permanent and present with unpredictable consequences.

Fourth, the real estate market has shown signs of recovery but is still facing difficulties. The imbalanced product structure in the market has pushed up the prices of apartments in the primary and secondary segments, making it difficult for people with real housing needs to access. Land prices in the inner city and suburban districts of Hanoi have shown signs of increasing rapidly again, especially in districts with information about upgrading to districts. In particular, recently, the situation of "abandoning deposits" after winning the auction has recurred, negatively affecting the price level and the housing market. "The situation of monopolization, price inflation, creating waves, and land speculation pushing up land prices has made buying and selling almost exclusively happen among speculators while making it difficult for people and businesses to access land because the land prices are high, beyond their ability to pay" - the Economic Committee stated.

Fifth, some bottlenecks have not been effectively resolved, such as the slow implementation of the National Power Plan and the National Energy Master Plan. The work of formulating and implementing the Law and Ordinance Development Program still has some limitations and shortcomings. Some regulations and administrative procedures in some agencies, units, localities, and business conditions are still cumbersome and have not been thoroughly reduced, causing difficulties for businesses and people.

Sixth, counterfeit goods, poor quality goods, and goods of unknown origin continue to be one of the pressing social issues, leaving negative consequences such as affecting the health and finances of consumers, reducing consumer confidence in the transparency of the goods market, and reducing the reputation of genuine manufacturers and businesses.

Seventh, some social issues need attention. The labor market still has potential risks. The rate of informal employment is still large. The shortage of medicine continues; the situation of advertising and selling food as medicine and functional foods of unknown origin on the internet has not been thoroughly resolved, causing outrage in society and affecting people's health. Overcharging at the beginning of the school year still occurs. In 2024, public opinion was stirred up by the case of "fake scholars, real degrees" at the highest level of training; however, the state management agency of education has not yet had a satisfactory, public, and transparent handling measure with the public. The lives of a part of the people are still difficult, especially since storm No. 3 Yagi caused very serious damage to people and property and could have a negative impact on our country's hunger eradication and poverty reduction work. Accidents, injuries, and child abuse still occur, including serious cases of child abuse and violence, causing public outrage.

Eighth, some types of crimes and traffic safety and order have complicated developments. The work of preventing, combating and combating crimes and law violations still faces many challenges. Crimes against social order still occur frequently, notably drug crimes, organized crimes, crimes using weapons and explosives to commit crimes, human trafficking, crimes related to "black credit", and property fraud. Corruption and economic crimes continue to have complicated developments. Violations, mainly online fraud, are increasing with many sophisticated and frequently changing methods and tricks, making them difficult to detect and combat. Traffic accidents are still complicated, with serious occupational accidents and fires occurring, causing damage to the lives and property of people and businesses.

Source: https://daidoanket.vn/8-kho-khan-kinh-te-xa-hoi-viet-nam-doi-dien-trong-nam-2024-10291942.html