Six-month growth higher than expected: official
In a significant announcement made during the Government’s regular press meeting in Hanoi, the economy’s upward trajectory through the first half of 2024 has outstripped expectations, charting a course of strong recovery and substantial trade surplus.
Minister – Chairman of the Government’s Office Tran Van Son, in his dual role as Government Spokesman, highlighted the quick rebound of the economy to pre-COVID-19 levels within the initial six months. This period witnessed consistent monthly and quarterly improvements across most sectors, surpassing the achievements of the corresponding timeframe in 2023.
With an impressive surge in gross domestic product (GDP), the economy expanded by 6.93% in the second quarter and 6.42% in the first half (H1) of the year. These figures not only eclipsed the 3.84% growth rate of the last year’s comparable period but also exceeded the projected growth scenario of 5.5 – 6% outlined in the Government’s Resolution 01-CP.
The stability of the macro-economy remained intact, with inflation under check and the major economic balances safeguarded. The first six months recorded a 4.08% increase in the consumer price index (CPI), while the core inflation rate was pegged at 2.75%, ensuring both energy and food security.
The international trade front witnessed an impressive uptick with exports growing by 14.5% and imports by 17%, culminating in a robust trade surplus of 11.63 billion USD. This surplus played a critical role in maintaining the balance of payments.
Revival was also observed in the service and tourism sectors, with a notable 8.6% increase in total retail sales of goods and services. International tourist arrivals reached 8.8 million, marking a 58.4% increase from the previous year and a 4.1% rise from the pre-pandemic period of 2019.
Despite these positive outcomes, challenges such as inflationary pressures, exchange rate volatility, and economic stability concerns were acknowledged. Other noted issues included hurdles in production and business in certain sectors, sluggish public investment outlays, and slow progress in addressing real estate market bottlenecks.
In response, the Government has pledged to retain a focus on growth while ensuring macro-economic stability, controlling inflation, and safeguarding fundamental economic balances. A strategy involving a blend of expanded, targeted fiscal policy and proactive, flexible monetary policy is to be pursued.
Efforts towards financial discipline, enhanced budget collection management, and prudent state expenditure will be intensified. Emphasis will also be placed on digital adoption, easing of tax-related procedures, and facilitation of market activities in real estate and corporate bonds.
Ensuring the adequacy of electricity and petrol supplies, accelerating key infrastructure developments, revitalizing traditional growth engines, and fostering new ones are among the priority areas. Furthermore, the push towards institutional and administrative reforms, coupled with a focus on digital transformation, will be key to sustaining this growth momentum.
The commitment to these measures underscores the Government’s dedication to not only achieving targeted growth rates in the latter half of the year but also laying a solid foundation for future economic progress.
