Việt Nam will prioritise promoting three growth drivers of investment, export, and consumption amid external factors that influenced the country’s economic performance in the first quarter of this year, Prime Minister Phạm Minh Chính said at the regular Government meeting held on Monday in the capital city.

Members of the Government and leaders from ministries, agencies and localities agreed that the country’s GDP in Q1 is lower than expected and the economy is facing many challenges including inflation and decreasing export orders, which put more pressure on the macro economy management activities.

The Government and the PM have directed authorities to handle a number of outstanding issues including ill-performed projects, banks and thermal power plants as well as those related to the supply of fuel, supply of medical equipment, responses to the US and EU monetary policies, the issues in vehicle registry sector.

They also tackled issues in real estate, corporate bonds, tourism and employment sectors and focused on improving the business investment environment, speeding up the progress of large and key projects, speeding up the disbursement of public investment capital and attracting foreign and private investment.

Regarding the leadership directions, the PM stressed the importance of adhering to the Party’s resolutions, the leadership of the Central Committee, the Politburo and key leaders as well as following the socio-economic development strategies and relevant resolutions and directives of the Government and Prime Minister.

Regarding specific tasks, PM Chính said that Việt Nam will be consistent with its goal of controlling inflation, stabilising the macro-economy, promoting growth, ensuring key balances of the economy and improving planning work.

It is also important to accelerate the disbursement of public investment capital, effectively implement socio-economic development and recovery while promoting production and business development, creating favourable conditions for people and businesses, and ensuring livelihoods for people.

He also ordered relevant authorities to solve problems related to the shortage of medical supplies and medicines, strengthen the corruption fight and enhance defence and security tasks.

Specific tasks for sectors

He asked the State Bank of Vietnam to have a firm, proactive, flexible, timely and effective monetary policy.

The SBV must direct commercial banks to continue to reduce costs, lending interest rates, ensure reasonable credit growth and focus on priority areas while removing difficulties for the real estate sector.

The Ministry of Finance was requested to strengthen the management of budget revenues and expenditures and work on policies related to the exemption and reduction of tax and fees.

The finance ministry must finalise the report on the situation of the corporate bond market in the 2022-23 period and propose solutions to address the problems.

The PM requested the Ministry of Planning and Investment to continue to review, simplify business conditions, create favourable conditions for people and businesses, and prepare to submit to the National Assembly for the promulgation of resolutions to remove obstacles in production and business activities.

The Ministry of Construction was asked to promote the safe, healthy and sustainable development of the real estate market, contributing to solving difficulties of the market.

The Ministry of Industry and Trade will have to complete Power Development Plan VIII in April, focusing on diversifying export markets and continuing to negotiate free trade agreements.

PM Chính ordered the Ministry of Agriculture and Rural Development to promote food production, ensuring that agriculture remains the backbone of the economy while continuing to improve and restructure the agricultural sector, and focusing on efforts to remove EC’s IUU yellow card.

The Ministry of Health was asked to completely deal with difficulties and obstacles in procurement and bidding for drugs and medical equipment.

The Ministry of Education and Training must have good preparation for the upcoming national entrance exams, he said.

The PM ordered the Ministry of Science and Technology to promptly hand over Hòa Lạc Hi-tech Park to Hà Nội as well as complete the national labour productivity project.

He also requested the Ministry of National Defence to closely monitor the regional and international situation, and firmly protect national sovereignty.

Q1 performance

The Gross domestic product (GDP) in the first quarter of 2023 increased 3.32 per cent over the same period last year. The consumer price index (CPI) increased by 4.18 per cent.

State budget revenue in the first quarter is estimated at 30.3 per cent of the estimate (for the whole year). The trade surplus was estimated at US$4.07 billion, twice the same period in 2022.

International visitors to Việt Nam in the period reached nearly 2.7 million arrivals, 29.7 times higher than the same period last year.

Viet Nam News