Prime Minister: Basic salary will increase in July but inflation will not increase significantly

The Prime Minister asked delegates to propose mechanisms, policies, solutions, and organizations to effectively implement the newly issued laws, especially those on land and housing, to promote growth momentum.

Prime Minister Pham Minh Chinh chairs the regular Government meeting in July 2024. (Photo: Duong Giang/VNA)

On the morning of August 5, under the chairmanship of Prime Minister Pham Minh Chinh, the Government held a regular meeting in July 2024 to discuss and give opinions on the socio -economic situation in July and the first 7 months of 2024; the situation of allocation and disbursement of public investment capital; the implementation of 03 National Target Programs; and the interest rate of the 120 trillion VND preferential loan package for the development of social housing and workers' housing.

Attending the meeting were Deputy Prime Ministers; Ministers, Heads of ministerial-level agencies and Government agencies; Vice President Vo Thi Anh Xuan; leaders of a number of Party Committees, Committees and agencies of the National Assembly.

Prime Minister Pham Minh Chinh and other members of the Government and delegates attending the meeting observed a minute of silence for General Secretary Nguyen Phu Trong. (Photo: Duong Giang/VNA)

At the beginning of the meeting, the Government observed a minute of silence, expressing its infinite sorrow at the passing of General Secretary Nguyen Phu Trong, an exceptionally outstanding, loyal, and prestigious leader who devoted his entire life to the revolutionary cause of our Party and people; an example of studying and following the ideology, morality, and style of President Ho Chi Minh.

The Prime Minister and delegates attending the Session also congratulated Comrade To Lam on being elected by the Central Committee to hold the position of General Secretary of the Central Executive Committee of the Communist Party of Vietnam with an absolute 100% vote rate.

Assessing the situation and requesting discussion of the meeting's contents, Prime Minister Pham Minh Chinh said that in July, in general, the world situation continued to develop in a complicated and unpredictable manner with political fluctuations, fierce competition between major countries, escalating conflicts; the global economy recovered slowly and unsteadily with the US dollar and gold prices increasing; the prices of crude oil, basic goods, and transportation services fluctuated strongly; inflation had not yet reached the target level in many countries; the FED had not yet cut interest rates; issues of population aging, resource depletion, climate change, natural disasters, extreme weather, and epidemics had a heavy impact; in particular, the world experienced the hottest days in history in July.

According to the Prime Minister, domestically, there are advantages, difficulties and challenges intertwined, but there are more difficulties and challenges, especially since our country is a developing country, the economy is in transition, the scale is still modest, the openness is high, the scale is still modest, and the resilience is limited.

In that context, thanks to the efforts of the entire Party, the entire army and the entire people, the socio-economic situation in July continued to trend positively, achieving better results than in June, and overall, the first 7 months were better than the same period in most areas; growth was promoted in all 3 sectors of industry, agriculture and services; the macro economy was stable, inflation was controlled, major balances were ensured and there was a surplus; 63/63 provinces and cities had an increased industrial development index; key economic sectors continued to change positively; many outstanding issues were focused on resolving; social security was ensured; the fields of culture, sports, health, education and training were given attention and developed with many good results; continued to build an honest administration, serving the people; national sovereignty, political security, social order and safety were maintained; foreign affairs were promoted; the country's prestige and position continued to be raised.

“In July, we spent a lot of resources to increase the basic salary, but inflation did not increase significantly,” the Prime Minister emphasized.

The Prime Minister said that the above results were achieved thanks to the efforts of ministries, branches and localities; the participation of people and businesses; the support and assistance of international friends; especially, the direction and administration of the Government and all levels, branches and localities were basically more experienced, proactive, flexible, appropriate and closer to reality.

The Head of Government said that, in addition to the basic results achieved, there are still limitations, inadequacies, difficulties and challenges such as: pressure on management and direction is still high, especially in stabilizing the macro economy, controlling inflation and exchange rates; production and business in some areas are facing many difficulties, the number of enterprises withdrawing from the market is still high; security and order have potential risks; discipline and order are sometimes not strict in some places, the situation of cadres and civil servants being afraid of making mistakes and avoiding responsibility.

The Prime Minister requested the delegates attending the meeting to focus on thoroughly assessing the implementation of tasks in July and the first seven months; clearly identifying what has been done, what still remains, and what needs to be implemented more drastically to completely handle in August and the coming time.

Among them, the discussion clearly identified the good and bad aspects, causes and lessons learned; good, creative, breakthrough and effective ways of doing things in practice; assessed and commented on the situation in August and the coming time to achieve the set growth target; proposed mechanisms, policies and solutions to achieve the target; well-organized implementation of the newly issued Laws, especially the laws on land and housing; promoted the three traditional growth drivers and new growth drivers.

In particular, complete programs and projects submitted to the Central Committee; prepare well for the 10th Central Conference of the 13th tenure, the 8th session of the 15th National Assembly, with the motto of assigning "clear people, clear work, clear tasks, clear deadlines, clear results; strengthen inspection and supervision work; emulate, reward, and discipline promptly."

According to the Ministry of Planning and Investment, the socio-economic situation in July and the first 7 months of 2024 achieved many important results, continuing the positive trend, better than the previous month in many areas, which is a driving force to strive to complete and exceed the socio-economic development goals and targets for the whole year 2024.

The macro economy is basically stable, inflation is controlled, growth is promoted, major balances are ensured. The consumer price index (CPI) for 7 months is under control according to the National Assembly's target. The monetary market is basically stable; exchange rate and credit management are proactive, flexible, and appropriate, ensuring the safe operations of credit institutions.

State budget revenue in the first 7 months is estimated to reach 69.8% of the estimate, up 14.6% over the same period; public debt, government debt, national foreign debt, and state budget deficit are effectively controlled.

Import and export continued to increase, with a total increase of 17.1% in the first 7 months, with an estimated trade surplus of 14.08 billion USD. Total registered foreign direct investment (FDI) in the first 7 months reached more than 18 billion USD, an increase of 10.9% over the same period, and quality was improved.

The main sectors of the economy continued to change positively. Industrial production recovered rapidly; the industrial production index in July increased by 11.2% over the same period, and the total for the first 7 months increased by 8.5%. The agricultural sector continued to affirm its role as a pillar of the economy, ensuring food security.

The service sector maintained a good growth momentum; international arrivals in the first 7 months reached nearly 10 million, up 51% over the same period.

During the month, 14,735 new businesses were registered, 8,201 businesses returned to operation; in total, in 7 months, there were 139,500 newly established and returned to operation businesses, higher than the number of businesses withdrawing from the market.

Many international organizations positively assess the results achieved and prospects of Vietnam's economy in 2024.

Minister of Planning and Investment Nguyen Chi Dung reports on the socio-economic situation in July. (Photo: Duong Giang/VNA)

Social security work, "gratitude" activities and the 77th anniversary of War Invalids and Martyrs Day (July 27) were focused on and effectively implemented by all levels and sectors. The fields of education and training, health care and culture were strengthened.

The work of building institutions, laws, reforming administrative procedures, improving the business environment, national digital transformation and implementing the Project "Developing the application of population data, electronic identification and authentication to serve national digital transformation in the period of 2022-2025, with a vision to 2030" (Project 06) has been promoted; urgently developing and promulgating documents guiding the implementation of the Laws: Land, Housing, Real Estate Business, Credit Institutions to ensure they take effect at the same time as the Law; speeding up the progress of key and important national infrastructure projects; promoting regional connectivity associated with investment promotion. Resolutely handling slow-progressing and ineffective projects and enterprises; focusing on removing difficulties and obstacles for key projects.

In July and the first 7 months of 2024, continue to maintain political stability, independence, and national sovereignty; strengthen national defense and security potential; ensure political security, social order and safety, and absolute safety for major political events of the country; deploy many solutions to ensure traffic order and safety, fire prevention, fire fighting, and rescue.

Foreign affairs, especially high-level foreign affairs, economic and cultural diplomacy, have been carried out effectively, contributing to maintaining a peaceful and stable environment, consolidating and enhancing our country's position and prestige in the international arena.

In particular, Government agencies closely coordinated and organized thoughtful and solemn services for the State Funeral of General Secretary Nguyen Phu Trong./.

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