Vietnam finance ministry urged to seek $4 bln of bonds for strategic infrastructure development

The Vietnamese Ministry of Finance has been requested to mobilize another VND100 trillion ($4.06 billion) worth of bonds for strategic infrastructure development.

Prime Minister Pham Minh Chinh made the request while chairing the government's regular meeting in Hanoi on Saturday.

Emphasizing the government's determination to achieve more robust growth in 2024-2025, Chinh asked the finance ministry to increase revenue, reduce spending, and effectively utilize fiscal policy.

The State Bank of Vietnam, the country's central bank, should target lower lending interest rates and a credit growth rate of 15% this year, he noted.

Chinh also ordered all ministries, agencies, and localities to maximize the benefits of the newly inaugurated 500 kV national power transmission line - circuit 3, which spans 519 kilometers from the central province of Quang Binh to the northern province of Hung Yen.

The Ministry of Transport was tasked with promoting the construction of three railways to China and preparing reports on the North-South high-speed railway project, as well as several metro lines in Hanoi and Ho Chi Minh City.

The government chief pressed for the rapid finalization of a semiconductor workforce development plan by 2030, with a vision to 2050, alongside a semiconductor development strategy.

Chinh also requested the completion of the mergers of some district- and commune-level administrative units by the end of this year and called for more drastic measures to combat corruption.

Brightening economic picture

At the meeting, Deputy Minister of Planning and Investment Tran Quoc Phuong assessed that the local economy had shown a positive recovery and regained a pre-pandemic growth momentum.

Vietnam's GDP expanded 6.42% year-on-year in the first half of 2024, well ahead of the 3.84% posted in H1/2023. The government has set a growth target of 6-6.5% this year.

Budget collection in the first eight months of 2024 met 78.5% of the year's plan and increased 17.8% year-on-year.

The country attracted $20.52 billion in foreign direct investment (FDI) during this time, up 7%. Disbursed FDI reached a five-year high of $14.15 billion, marking an 8% year-on-year increase.

Vietnam also recorded a merchandise trade surplus of $19.07 billion for the eight-month period, with exports growing by 15.8% and imports by 17.7%.

Phuong proffered some proposals to promote growth in September and Q4/2024. He suggested fine-tuning legal policies and leveraging a favorable business environment to attract large-scale, high-tech projects and lure talents from domestic and international sources.

The official underscored that clearing obstacles, particularly legal issues, for projects is the core mission for late 2025 and throughout 2025. He also recommended strengthening new drivers, such as digital economy and transformation as well as green transition.