New directive underlines key missions for economic growth, inflation control

Despite a complicated global situation, Việt Nam has seen macroeconomic stability, low inflation level, and balance in the economy.

A new directive has been approved by the Prime Minister, detailing the key missions and solutions for macroeconomic stability, inflation control and economic growth in the new situation.

Directive No 15/CT-TTg stated that while the global situation remains complicated with unprecedented and unexpected developments, Việt Nam has seen a positive recovery in the first eight months of 2022.

This results from the determination and coordination of the whole political system, alongside support from businesses, the people, and the international community.

The country has seen macroeconomic stability, low inflation levels, and a balanced economy.

The average consumer price index (CPI) in the past eight months increased by 2.58 per cent.

Recently, Moody's Investors Service upgraded Việt Nam's long-term issuer and senior unsecured ratings to Ba2 from Ba3 with a stable outlook, the same as S&P which increased the country’s ratings to BB+.

Fitch also affirms Việt Nam’s rating at BB with a positive outlook, while Nikkei Asia raised the country’s COVID-19 recovery index to second place in the global ranking.

Against this backdrop, maintaining macroeconomic stability, inflation control and economic growth and balance is crucial to achieving the goals set out in the Resolution of the 13th National Party Congress, as well as the five-year and annual plans.

The Prime Minister’s directive requires stringent adherence to the Party’s guidelines and the Government’s laws and policies in macroeconomic management, which needs to be flexible, innovative, effective and suitable to the actual situation and requirements.

Measures must be taken in a way that ensures stability in uncertain contexts, initiative and consistency in actions in face of complicated and unpredictable changes, prompt risk management as well as international cooperation.

It is also necessary to implement prudent monetary policies that also ensure flexibility and effective coordination with expansionary fiscal policies.

The goal is to obtain a high economic growth rate and inflation control level according to the set targets.

The document also emphasised security in terms of currency, credit, finance, public debt, food, energy and information; policy-making and planning; as well as technology innovation, digital and green transformation.

Product pricing must be well-managed, especially those that are essential to daily life and business products such as oil and gasoline.

Improving productivity, efficiency and entrepreneurship are encouraged.

The highest level of determination and effort must be present in flexibly and effectively adapting to the new situation, overcoming challenges and taking advantage of opportunities to promote socio-economic development.

Other requirements include close observation of the current context and improved analytic and forecast capacity to promptly and actively take action in any given situation.

The document also highlights the spirit of autonomy, self-reliance and the strength of national unity in mobilising all resources for the country’s development.

Stringent compliance with pandemic control protocol and vigilance towards new diseases are required.

Other areas of focus include social welfare and better living standards, administrative reforms, anti-corruption measures, strengthening national defence and security, diplomatic affairs, autonomous economy and international integration.

Following these guidelines, specific tasks and solutions will be carried out in coordination between ministries and government agencies, which are the Ministry of Planning and Investment; Ministry of Finance; Ministry of Industry and Trade; Ministry of Agriculture and Rural Development; Ministry of Construction; Ministry of Transport; Ministry of Natural Resources and Environment; Ministry of Culture, Sports and Tourism; Ministry of Labour, Invalids and Social Affairs; Ministry of Health; Ministry of Foreign Affairs; Ministry of Public Security; Ministry of Defence; Ministry of Information and Communications; State Bank of Việt Nam; Commission for the Management of State Capital at Entreprises; as well as ministerial-level leaders and chairpeople of municipal and provincial People’s Committees.