Macro-economic growth expected to surpass yearly targets

The socio-economic situation has gradually regained stability with the consensus of the business community and people (Photo: VNA)

Hanoi (VNA) - The implementation of socio-economic recovery and development programme policies has produced positive results, which are expected to help the economy regain the growth pace like in the pre-pandemic period.

In the first eight months of this year, recovery has been seen in many sectors and fields. Based on this, analysts said Vietnam’s economy would likely regain the high growth rate seen in the years before the COVID-19 pandemic broke out. 

Proactively maintaining room for manoeuvre in policy 

Deputy Minister of Planning and Investment Tran Quoc Phuong said the Government had maintained the approach of “safely adapting to, and flexible and effectively controlling the pandemic”. As a result, the pandemic has been contained, and the vaccination rate has increased. 

Regarding economic development, the deputy minister said the Government has promulgated, popularized and directed the implementation of policies for socio-economic recovery and growth, while keeping regular supervision and conducting regular assessments.  

“The socio-economic situation has gradually regained stability with the consensus of the business community and people. In addition, the Government has proactively left room for manoeuvre in policy to cope with future scenarios, maintain the impetus of business environment reform, and create space for new economic models,” Phuong said. 

According to initial statistics of the Ministry of Planning and Investment, around 48 trillion VND (over 2 billion USD) has been disbursed under policies in the programme on socio-economic recovery and development so far. The Bank for Social Policies disbursed over 9.2 trillion VND in loans to support job creation, buy computers and equipment for online teaching and learning, and lease housing for workers. The bank also disbursed loans under credit programmes with interest support worth more than 60.2 trillion VND.

Disbursement of investment capital surges

The first eight months of the year saw a quick recovery in most socio-economic aspects. The eight-month Index of Industrial Production (IIP) posted an increase of 9.4%, while total retail sales of consumer goods and services picked up 19.3% from the same period in 2021.

It is noteworthy that social investment surged strongly in the period, with the disbursement of investment capital from the State budget rising by an estimated 16.9% and that of FDI increasing by 10.5% to 12.8 billion USD, the highest for the period in the past five years. 

Updating economic growth scenarios 

According to Deputy Minister Phuong, economic recovery will be strong and sustainable if the programme on socio-economic recovery and development is fully implemented as scheduled. 

Based on statistics of the General Statistics Office (GSO), the head of the GSO’s Statistics Department, Do Thi Ngoc, proposed measures to maintain the positive trends of the economy. 

She stressed that vaccination against COVID-19 for children aged 5-12, and booster shots for people over 18, should be accelerated. The supply of medicine, medical equipment and materials for public health care and pandemic control must be ensured. 

Besides, localities should prepare plans to respond to natural disasters such as flooding, drought, erosion and saltwater intrusion to minimize damage to production and people’s life while effectively carrying out policies on social welfare, labour and employment. 

Relevant agencies should undertake flexible monetary and fiscal policies, continue with efforts to maintain a stable macro economy, exchange rate and interest rates, control prices and the market, and ensure goods supply and major balances of the economy. 

Besides, ministries, sectors and localities should take drastic actions to disburse public investment capital and accelerate the implementation of support measures under the programme on socio-economic recovery and development./.