Many global technology companies are keen to invest in Vietnam's electronics, chip, and semiconductor industries.

Overview of the meeting. Source: VGP

This information was shared by Minister of Planning & Investment Nguyen Chi Dung at the regular Government meeting on May 4.

According to the minister, Vietnam’s macroeconomic situation over the first four months remained stable, with the economy recovering and showing positive growth, meeting the targets set.

"International enterprises and organizations continue to rate Vietnam's growth prospects highly," he added, noting that the total newly registered foreign direct investment (FDI) since the beginning of the year has reached over $7.1 billion, up 73.2%.

In addition to attracting foreign investment, according to the report from the MPI, one of the bright spots in the economy over the first four months is that production and business activities continue to be positive.

The Industrial Production Index (IIP) for April is estimated to have increased by 0.8% compared to March and by 6.3% compared to the same period in 2023.

Overall, the IIP rose by 6% in the first four months of the year, a marked improvement on the 2.5% decline recorded in the same period a year earlier. The number of persons employed in the industry as of April 1 expanded by 3.4% compared to the same period last year.

Over the four months, some 81,300 enterprises entered or re-entered the market, an increase of 3% compared to the same period. Meanwhile, the number of enterprises awaiting liquidation procedures or having been wound up was 25,500, a decrease of 5.3%.

Minister of Planning and Investment Nguyen Chi Dung.

However, Minister Dung also acknowledged significant challenges ahead, particularly in inflation control, macroeconomic stability, and promoting future growth.

Dung suggested that the solution is for all levels, sectors, and localities to continue administrative reforms, improve the investment environment, and innovate growth drivers for investment, consumption, and exports. Additionally, new growth drivers from digital and green transformation must be maximized.

In conclusion, Prime Minister Pham Minh Chinh instructed Government agencies to continue resolving difficulties, promoting production and business activities, and minimizing administrative procedures through digital transformation.

Furthermore, he requested the Ministry of Finance to propose policies this month to waive, reduce, or extend deadlines on taxes, fees, and charges to support businesses and individuals.

"Priorities should also be given to restructuring industrial production and advancing large-scale, high-tech projects," said Chinh.

Care should be taken to ensure an adequate supply of electricity and petroleum products under all circumstances.

The Ministry of Industry and Trade has been tasked with promptly finalizing the mechanism for direct electricity purchase between power generation units and large consumers, while promoting rooftop solar power generation for self-consumption in the spirit of "creating incentives, without local or group interests".

The Consumer Price Index (CPI) increased by 3.93% over the first four months, indicating continued pressure on inflation control. The Prime Minister reiterated the principle of "no sudden price spikes" in price management. Accordingly, price management agencies must have a roadmap, avoid sudden price hikes and simultaneous increases in many items, and coincide with wage increases.