Hanoi (VNA) – The national budget is emerging as a critical tool for Vietnam to catch up with global development trends, a National Assembly (NA) Deputy told the Vietnam News Agency.
On the sidelines of the 15th NA’s eighth sitting, Tran Hoang Ngan from Ho Chi Minh City’s NA delegation provided an overview of the Vietnamese economic landscape, highlighting the country’s resilient financial strategies and promising growth trajectory.
The Government’s report on the State budget collection in the first nine months of 2024 reveals a robust performance, he said. The revenue figures reflected the most accurate picture of the economic recovery, and spending was at a rational level amid unplanned expenses and the State base salary increase, which starts July 1, 2024 in accordance with regulations.
Despite the sluggish disbursement of public capital, he expressed hope that strong measures taken by the Government, ministries and sectors will expedite the work and ensure the set targets will be met this year.
Notably, Ngan said Vietnam has successfully controlled inflation, keeping it under 4% since 2014. He described this as a significant achievement that creates a stable macroeconomic environment, builds up confidence among investors, and shapes up a foundation to promote the economy’s resilience amidst global headwinds.
Trade balance is another bright spot, with continuous surpluses since 2016, contributing to macroeconomic stability and exchange rate consistency. This stability has helped prevent market speculation and maintained public confidence.
He said the robust Vietnamese economy has been spurred by the three economic drivers, namely export, investment, and consumption.
Export, he stated, has shown remarkable performance, growing 10-15% and indicating strong international demand for Vietnamese goods.
Meanwhile, disbursement of foreign investment has reached its highest level over the past five years. Investment in infrastructure and investment attraction in society have increased considerably, serving as a firm foundation for economic development.
He added that domestic consumption has also propelled the economy as evidenced by retail sales and service revenues, reflecting consumer confidence and purchasing power.
Those drivers probe that Vietnam has the potential to further develop its economy and obtain its economic targets, he said, underscoring the people’s confidence in the Party leadership as well as their aspiration to enter a new development era to build a strong nation.
Over the past years, with stable financial resources, Vietnam has heavily invested in public infrastructure, particularly transportation. The development of harmonious infrastructure is expected to reduce logistics costs, which will serve as a sustainable driver of growth.
According to Ngan, investments in healthcare, education, and digital infrastructure have contributed to improving the quality of life for citizens. Notably, Vietnam's international standing and reputation have significantly risen through becoming a comprehensive strategic partner with numerous countries worldwide, thereby enhancing its capability of international integration and cooperation.
He said that if the high-speed North-South railway project is approved by the 15th NA at its eighth sitting, the infrastructure initiative will represent a significant step towards aligning with global development trends. He emphasised the project should be evaluated not just on economic merits but on its social impact.
When transportation infrastructure is improved, travel costs could decrease, stimulating regional economic development and boosting such sectors as tourism and commerce. The project could also potentially increase property values near railway stations, thus creating additional revenue streams.
Along with the three strategic breakthroughs of institution, human resources, and infrastructure development, technological innovation also has an important role to play to unlock development potential, according to the legislator./.
