The Government stands firm in maintaining macroeconomic stability and containing inflation as key measures to boost growth during the remaining months of the year.
|Production at Garment 40 Company in Thanh Xuan District, Hanoi. Photo: Hai Linh|
The remarks were mentioned in the Government’s latest resolution No.126/NQ-CP on efforts to ensure socio-economic development objectives in 2022.
According to the resolution, the global situation would continue to evolve in a rapid and unexpected manner.
Amid fears of rising inflationary pressure, countries around the world are now turning to tightening monetary policy, which is causing economic slowdown and increased risks of a recession.
On the domestic front, Vietnam’s modest economic size, high level of openness and limited resilience make the economy vulnerable to external shocks, especially high inflation, rising production costs, and shrinking demand from major export markets.
In this context, the Government considers keeping macro-fundamentals intact and containing inflation as the utmost priorities.
The State Bank of Vietnam (SBV) is responsible for managing flexible monetary and fiscal policies to boost growth, ensuring the effective implementation of the 2% interest rate subsidy scheme for businesses and individuals affected by the pandemic.
The resolution requested the Ministry of Finance (MoF) to further expand fiscal policy in support of the economy, including further tax and fee cuts for businesses; avoiding tax revenue loss, and tightening state budget expenditure.
The Ministry of Planning and Investment is responsible for promoting public investment and the implementation of the socio-economic recovery program, along with mobilizing financial resources for development.
The Government assigned the Ministry of Industry and Trade to monitor the supply and demand of strategic commodities, especially fuel and gas products, to prevent risks of supply disruption and meet domestic consumption demand; promote the restructuring process in the industrial sector, and trade for sustainable surplus; ensure national energy security and transition toward green and low carbon emission.
The Ministry of Agricultural and Rural Development is expected to work with other agencies to ensure national food security under any circumstance; promote agricultural production toward efficiency and sustainability; develop a global value chain for farm produce.
The Ministry of Labor-Invalids and Social Affairs should foster the sustainable and effective development of the labor market through efforts to promote a high-quality workforce to prepare for the global investment shift; ensure social welfare, especially for socially vulnerable groups or those in remote areas and of ethnic minorities.
Priorities are also given to social and cultural development, environment protection; administrative reform; socio-political stability, national defense, public order; digital transformation, and climate change response.
General Director of the General Statistics Office (GSO) Nguyen Thi Huong said Vietnam’s GDP growth in 2022 may reach 8%, surpassing the original target of 6.5%.
According to Huong, such a high growth rate could be feasible thanks to strong growth momentum in the first nine months of 2022 at 8.83% year-on-year, the highest nine-month growth in the 2011-2022 period.
“Flexible management of the Government and the positive response from the business community and the people would help Vietnam keep up with the current development pace and realize the growth rate of 7.5-8% for this year,” Huong said.
Hanoi’s socio-economic situation during the nine-month period faced negative impacts from global challenges, including the Russia-Ukraine conflict, rising prices of strategic commodities, and the energy crisis in Europe.
The city, however, has been taking measures to keep prices of strategic products under control, while taking a flexible approach to contain the pandemic, eventually laying the ground to shift focus on economic recovery.
This has resulted in Hanoi’s GRDP growth of 9.69% during the nine-month period. This put the city in a favorable position to realize the GDP growth target of 7-7.5% for this year.