GDP reaches 430 billion USD, Vietnam enters the upper middle group of the world

Although GDP growth is lower than the set target, it is still high in the world and the region. The size of the economy reached 430 billion USD, putting Vietnam in the group of upper middle-income countries. However, the economy is still facing many difficulties and challenges.

Spend 680,000 billion VND to increase salaries

On the morning of May 20, on behalf of the Government, Deputy Prime Minister Le Minh Khai reported on the results of socio-economic development in 2023 at the opening session of the 7th session of the 15th National Assembly. The Government assessed that there were "more positive changes" than the comments previously reported to the National Assembly. In the context of the world and regional situation with many rapid, complex and unpredictable changes, the results achieved in 2023 are very remarkable, appreciated and proud.

The socio-economic situation is assessed to have many positive changes.

NGOC THANG

Some socio-economic indicators were higher, such as the GDP growth rate of 5.05% (reported 5%), although lower than the set target, it is a high level in the world and the region. The economic scale reached 430 billion USD (GDP in 2022 is 406 billion USD), entering the group of upper middle-income countries. Inflation was controlled, the average consumer price index (CPI) increased by 3.25% (reported increase of about 3.5%). By the end of 2023, the Government had allocated about 680,000 billion VND to implement the new wage policy. People's lives were constantly improved, the average income of workers reached 7.1 million VND/month, an increase of 6.9%. The number of households with increased and stable income reached 94.1%. Deputy Prime Minister Le Minh Khai said that GDP growth in the first quarter of 2024 reached 5.66%, the highest in the 2020-2023 period; this is a great effort in the context of the economy facing many difficulties. In the first 4 months of the year, disbursement of public investment capital reached 17.46% of the plan, the highest in the past 4 years. Total registered FDI capital reached 9.27 billion USD, up 4.5%, of which newly registered FDI capital reached 7.11 billion USD, up 73.2%. Implemented FDI reached 6.28 billion USD, up 7.4%, the highest in the past 5 years. Many large corporations have committed to investing in Vietnam in the electronics, chip, semiconductor, renewable energy industries... Another bright spot is a series of important national key transport and energy infrastructure projects that have been started, such as the Dong Dang - Tra Linh, Huu Nghi - Chi Lang expressway projects, and the expansion of Terminal T2 - Noi Bai airport. The Dien Chau - Bai Vot section (30 km) and Cam Lam - Vinh Hao (79 km) have been put into operation, bringing the total number of kilometers of expressway put into operation to more than 2,000 km. In addition to the positive results, the Government also frankly pointed out that the production and business activities of enterprises and people still face many difficulties. In the first 4 months of the year alone, nearly 86,400 enterprises nationwide withdrew from the market, an increase of 12.2% over the same period. The real estate market has recovered slowly, and the progress of implementing the social housing loan package of 120,000 billion VND has not met requirements. Commercial banks have committed to providing credit for 15 social housing projects with a committed amount of about VND7,000 billion, but have only disbursed for 12 projects with a total amount of VND956 billion.

Many challenges to overcome

In the audit report, Chairman of the National Assembly Economic Committee Vu Hong Thanh also assessed that in addition to the achieved results, the socio-economic situation in the first four months of the year revealed difficulties and challenges. In particular, the management of the gold market still has many shortcomings, gold prices fluctuated strongly, and the difference between domestic and international gold prices was large. "The preference for gold is increasing, but has not been adjusted appropriately, which may affect the management of the macro economy and market stability," Mr. Thanh said. Regarding business activities, in the first four months of the year, the whole country had 81,300 newly established and returning enterprises, but 86,400 enterprises withdrew from the market. This is the first time in the past five years that the number of enterprises entering and re-entering the market is lower than the number of enterprises withdrawing from the market. In addition, according to the National Assembly Economic Committee, some bottlenecks have not been effectively resolved, such as slow handling of weak credit institutions, slow-progressing projects and works, ineffective investment, and prolonged losses. The slow handling of weak credit institutions also has a negative impact on the monetary market, affecting cost reduction and interest rate reduction of credit institutions. Some important traffic projects have not ensured construction progress. Many expressway and key traffic projects, especially in the Mekong Delta and the southern region, lack sand for filling, affecting the construction progress of projects as well as the disbursement of public investment capital. Also according to the National Assembly's inspection agency, the real estate market is still facing difficulties, especially in terms of regulations and procedures for developing social housing projects; the progress of implementing the 120,000 billion VND social housing loan package is still slow, not meeting expectations. Real estate enterprises continue to face difficulties in liquidity and cash flow. However, in the first months of 2024, the prices of apartments in central or suburban areas of Hanoi have recorded a sudden increase. Even the prices of social housing used for many years have increased beyond the affordability of workers who need to buy houses. Believing that those in need cannot buy due to complicated procedures and speculation, the huge difference in social housing prices, the Economic Committee proposed that the Government study the post-inspection mechanism and take measures to strictly handle cases of buying social housing for the wrong subjects. At the same time, it proposed that the Government direct a comprehensive inspection of social housing development, identify obstacles, inadequacies, violations, and negativity to strictly handle them according to the provisions of law. Notably, the audit report also pointed out that land speculation in recent times has led to a number of consequences, making it impossible for people with real needs for housing, production and business to access land while land is abandoned due to speculation. Social resources, instead of being used for investment in production, business and job creation, are "buried" in land, increasing business costs and reducing the competitiveness of the economy. In addition, people with real needs to buy houses and land are having to pay large sums of money to speculators, meaning that the weak forces in society, the poor, are having to pay the rich for their basic housing needs, making the gap between rich and poor in society increasingly serious. These are problems that can have negative consequences for the country's socio-economic development, and in the long run can even lead to social instability.

Recommendations to speed up progress of national target programs

On the morning of May 20, at the opening session, presenting a report summarizing the opinions and recommendations of voters and people sent to the 7th session, Chairman of the Central Committee of the Vietnam Fatherland Front Do Van Chien said that voters and people highly appreciated the fight against corruption and negativity, which continued to achieve important and comprehensive results, "words go hand in hand with actions", there are truly no forbidden areas, no exceptions, regardless of who that person is. However, voters and people are still concerned and worried about the situation of the number of dissolved and temporarily suspended enterprises not decreasing, workers being laid off, laid off, and having their social insurance withdrawn at one time increasing; prices of fertilizers, pesticides, electricity, and air tickets continue to increase; consumption of agricultural, forestry, and fishery products is still difficult, and the recovery of the tourism economy is not yet stable; Prices of essential goods remain high while wages have not increased, which has somewhat affected the lives of wage earners, workers and unemployed workers with unstable incomes. Voters are also concerned about the shortage of some supplies, medicines and medical equipment for medical examination and treatment; the quality of medical examination and treatment at grassroots health facilities is still low, there is still an overload in central hospitals; along with the risk of poisoning in collective kitchens; extreme weather conditions, heat, drought, saltwater intrusion, lack of water for production and daily life of the people. Given the above reality, the Presidium of the Central Committee of the Vietnam Fatherland Front recommends that the Party and State direct ministries, branches and localities to speed up the implementation of national target programs, especially the poverty reduction and socio-economic development programs for ethnic minorities and mountainous areas; and promptly resolve difficulties in residential land, production land, domestic water, livelihoods and social security. At the same time, remove difficulties to limit businesses from leaving the market, create conditions for businesses to restore production, create jobs for workers; review and collect all recommendations from residents in apartment buildings nationwide to study and satisfactorily resolve disputes between residents and investors and management boards...

Thanhnien.vn

Source: https://thanhnien.vn/gdp-dat-430-ti-usd-viet-nam-vao-nhom-trung-binh-cao-cua-the-gioi-185240520233752573.htm