Vietnam to prioritize economic expansion with inflation under control: PM

Inflation has been reined in within the target and is decreasing, so the government will focus on lifting economic growth in May and the coming months, Prime Minister Pham Minh Chinh told a cabinet meeting on Friday.

"The cabinet will prioritize promoting growth while remaining consistent with the goal of macroeconomic stabilization; and harmonize and balance interest rates and exchange rates, growth and inflation, supply and demand, and monetary and fiscal policies," he said.

At the meeting, ministries and agencies reported that braving numerous difficulties and challenges both inside and outside, Vietnam has obtained certain major targets, with macro-economy basically stabilized, major balances maintained, inflation kept under control, and growth promoted.

However, they noted that the country sees more difficulties and challenges than opportunities and advantages as across the globe, growth has declined, inflation has cooled down but remains at a high level while Vietnam's traditional, large markets are shrinking.

PM Chinh held that in the first four months, the country's macro economy was not firmly stabilized, with low credit growth and increasing bad debt risks, while global uncertainties continued to have great impacts on the domestic economy.

Despite a recovery in April, the industrial production in four months dropped compared to the same period last year, he said, adding that the main growth drivers, including investment, export, consumption, tended to decline. Public investment disbursement was lower than the same period in 2022 while registered FDI dropped.

Chinh also highlighted the slow implementation of national target programs, difficulties in production and business activities, rising input costs, difficult access to capital in some places, and high interest rates. The corporate bond, stock, and real estate markets continued to face challenges, he added.

To deal with the situation, the government leader noted major tasks to be fulfilled in the coming time, including the continued implementation of a flexible and effective monetary policy in combination with a reasonable fiscal policy.

"In the immediate future, it is necessary to increase capital access for production and business and reduce lending interest rates for both new and existing loans," he said.

He also stressed the need to focus on removing difficulties for production and business, provide timely and effective support for people and businesses, and boost supply and demand.

“We should stimulate consumption demand and strongly develop the domestic market; soon offer tax and fee exemptions and reductions to support workers and people; accelerate the disbursement of public investment capital; create favorable conditions to attract private investment capital; promote public-private cooperation; and unclog all development resources,” the cabinet leader stated.

Another important task is to step up administrative reform, improve the business environment, reduce costs for people and businesses, and promote public-private partnership, he added.

“It is necessary to strengthen the mobilization and effective use of resources, focus on training human resources, especially high-quality personnel, step up the application of science-technology and innovation, and improve worker skills,” the prime minister added.