Vietnam aims for 9% GDP growth in H2: prime minister

The government will not revise its GDP growth target of 6.5% for 2023 and strive to achieve economic expansion of about 9% in the second half of the year, said Prime Minister Pham Minh Chinh.

At a cabinet meeting in Hanoi on Saturday, the PM requested special attention be given to ensuring macro-economic balances and harmony between interest rates and exchange rates, whilst prioritizing growth, promoting both aggregate supply and demand and the three growth drivers - investment, export and consumption.

“It is necessary to continue implementing a proactive, flexible, timely and effective monetary policy, with further lending interest rate cuts, debt restructuring, repayment postponements, credit limit raising and appropriate M2 money supply,” he noted.

M2 is a measure of the money supply that includes cash, checking deposits, and other types of deposits that are readily convertible to cash.

"We must implement a reasonable and effective fiscal policy, with continued exemption, reduction and payment rescheduling of taxes, fees and charges as well as acceleration of tax refunds and public investment,” Chinh said, stressing the need to ensure national monetary and financial security, keep a close watch on internal and external situations for timely and appropriate response measures, and shorten institutional building processes.

The PM required a review of mechanisms and policies, as well as specific and appropriate solutions to promote the three growth drivers.

“It is crucial to focus on removing difficulties for production and business, promoting growth, and creating jobs and livelihoods for people amid decreasing inflation, while continuing to stabilize the macro-economy, control inflation and ensure major balances,” Chinh said.

The cabinet leader also asked for the role of the government’s 26 working groups to be promoted in collaborating with localities, focusing on promptly responding to recommendations and proposals of localities, agencies, people and businesses.

He ordered accelerating the implementation of the government's recovery and development program; disbursement of public investment capital; disbursement of the VND40 trillion ($1.68 billion), VND120 trillion ($5.05 billion) and VND15 trillion ($632 million) credit packages for interest rate support, social housing loans, and furniture and seafood production, respectively.

The national economy expanded by 3.72% year-on-year in the first half of the year, according to the General Statistics Office (GSO). The country’s average consumer price index (CPI) increased 3.12% in the seven months of the year.

The country's index of industrial production (IIP) increased by 3.9% in July over the previous month and by 3.7% year-on-year. However, the seven-month index decreased 0.7% year-on-year due to prolonged economic headwinds and weak demand worldwide.

State budget collection exceeded VND1 trillion ($42.13 billion), equivalent to 62.7% of the estimate. Exports fetched $195.4 billion, with a trade surplus of $16.5 billion. Total revenue from retail of goods and services increased 7.1% year-on-year in July and 10.4% in seven months.

Vietnam disbursed VND186.85 trillion ($8 billion) of public investment in the first seven months, or only 34.47% of the target set by the Prime Minister for the year. Registered foreign direct investment capital in Vietnam rose 4.5% year-on-year to nearly $16.24 billion in Jan-July, the first hike so far this year.