Vietnam sets 7% growth, 4.5% inflation targets for Q3

Vietnam will strive to achieve a GDP growth of 6.5-7% in the third quarter of 2024, Prime Minister Pham Minh Chinh said at a regular cabinet meeting Saturday.

Other major targets will be to keep inflation in check at 4.5% or lower, maintaining macroeconomic stability, defense-security, political stability and social safety; ensure financial-monetary security, improve social welfare and strengthen international integration.

The 7% goal is higher than the National Assembly’s target of 6-6.5% for the whole year.

Vietnam’s GDP growth reached 6.93% in the second quarter and 6.42% in the first half of 2024, according to the General Statistics Office (GSO).

PM Chinh’s announcement of the targets came after the Ministry of Planning and Investment had reviewed the nation’s socioeconomic development in the first half of 2024 and made recommendations.

In particular, the ministry proposed two target options: GDP growth of 7% in 2024, with growth of 7.4% in Q3/2024 and 7.6% in Q4/2024. The other option was GDP growth of 6.5% for the year, with 6.5% in Q3/2024 and 6.6% in Q4/2024.

The ministry noted several favorable conditions for achieving the targets including growth in several economic sectors; recovery of public sector, private sector and foreign sector investments; strong export performance; better than expected performance of tourism and consumption sectors; upcoming updates to the legal framework; and strong performances of key localities including Hanoi, Ho Chi Minh City and Binh Duong.

Chinh said that for the second half of this year, the government will pursue a suitable fiscal policy with focus on reducing loan interest rates, improving access to credit and maintaining stability of the exchange rate and the gold market.

Relevant authorities must focus on price management and inflation control, while ensuring supply of electricity and fuel, he added.

The Prime Minister also stressed the need to up disbursement of public investment, diversify export markets and boost domestic consumption with measures like encouraging cashless payment, e-commerce and influencing Vietnamese people to use Vietnamese goods.

Reducing administrative procedures and promoting digitalization were other measures that the PM mentioned.

In H1/2024, agriculture-forestry-fisheries grew 3.38%, industry-construction grew 7.51% and the service sector grew 6.64%.