PM Chính: Annual GDP growth expected at 7 per cent

Prime Minister Phạm Minh Chính emphasised the government’s commitment to "discipline, responsibility, and creativity," in a report on socio-economic development to the eighth session of the fifteenth tenure National Assembly on Monday.

Prime Minister Phạm Minh Chính emphasised the government’s commitment to "discipline, responsibility, and creativity," in a report on socio-economic development to the 8th session of the 15th-tenure National Assembly on Monday.

According to the report, the 2024 socio-economic development plan is finding success with 14 out of 15 targets either achieved or exceeded.

Key achievements included a GDP growth rate of 6.82 per cent for the first nine months, with a full-year estimate of up to 7 per cent, surpassing the National Assembly's target. Inflation remained controlled, labour productivity improved and foreign direct investment saw an 8.9 per cent rise, with public debt and budget deficit also well-managed.

Hitting the mark

Summarising the global, regional and domestic context, PM Chính emphasised the government's efforts in implementing the Resolutions and Conclusions of the Party Central Committee, the Political Bureau, the Party Secretariat, and the National Assembly.

“Overall, the socio-economic situation improved each month, with each quarter surpassing the previous one. The first nine months achieved significant results, surpassing the same period last year across most sectors. It is estimated that by the year’s end, 14 out of 15 targets will have been met or exceeded. The target of GDP per capita will be reached if the GDP growth rate exceeds 7 per cent. Notably, labour productivity surpassed the set target after three years of underperformance," said PM Chính.

The report stated that macroeconomic stability continued in 2024, with inflation under control, economic growth targets exceeded, and major balances maintained with a high surplus. Public debt, government debt, national external debt, and the state budget deficit were well-controlled.

According to the report, the average consumer price index rose by 3.88 per cent over the first nine months.

The foreign exchange market remained stable, with interest rates decreasing.

Budget revenue for the first nine months surpassed 85 per cent of the forecast, increasing by 17.9 per cent year-on-year, despite an estimated tax and fee relief of nearly VNĐ200 trillion (US$7.9 billion) throughout the year.

Public investment was focused on priority projects and not spread thinly, with significant national projects being implemented.

Positive trends continued in business development, with foreign direct investment (FDI) being a highlight. FDI capital reached US$17.3 billion, an 8.9 per cent increase, the highest in many years.

The economy shifted positively, emphasising the digital and green economies, increasing the share of industry, construction and services, while reducing agriculture's share. The industrial sector recovered robustly, driving growth, while services maintained a strong recovery trajectory. E-commerce and tourism expanded, and agriculture showed good growth with the development of eco-friendly, organic, and high-tech farming models.

PM Chính also outlined notable achievements in the social and cultural sectors, including social security policies, poverty reduction (with the national poverty rate decreasing by 1 per cent to 1.93 per cent), social housing projects and disaster relief following Typhoon Yagi.

In terms of healthcare, services also saw significant progress with good control of diseases and advancement such as remote medical services, digital transformation, with healthcare employment gains also noted. Education quality at all levels continued to improve, while the start-up and innovation ecosystem flourished.

Overcoming obstacles, promoting growth

The Prime Minister emphasised the importance of institutional reform as a key source of motivation for development. The government is focused on building and perfecting legal frameworks with innovative approaches, removing institutional obstacles and unlocking resources for effective utilisation.

PM Chính highlighted national security and defence efforts, which saw continuous reinforcement. In foreign policies, Việt Nam's diplomatic strategies, such as "bamboo diplomacy", helped expand the nation's international influence.

While acknowledging the significant achievements, PM Chính candidly pointed out challenges, including macroeconomic stability, production, bad debt, public investment disbursement and land clearance.

He urged local authorities to focus on meeting all 15 key targets for 2024, striving for GDP growth of over 7 per cent, and keeping inflation below 4.5 per cent.

In outlining the key tasks for 2025, the Prime Minister stressed the importance of boosting growth, accelerating public investment disbursement, and attracting selective foreign capital. New growth drivers, particularly in digital transformation, green energy and high-tech industries, were highlighted as vital areas of focus.

The government will continue to focus on strengthening the macroeconomy, controlling inflation, enhancing financial discipline, and addressing bad debt. Infrastructure development will also be prioritised, with a goal of completing 3,000 km of highways and launching the Lào Cai - Hà Nội - Hải Phòng railway project. The energy sector will see significant policy development, with a focus on renewables and national energy security.

In conclusion, the Prime Minister affirmed the government’s determination to achieve these goals under the leadership of the Party and the supervision of the National Assembly. He reiterated the need for creativity, proactiveness and resilience in addressing challenges and striving for success as Việt Nam moves towards a new era of growth and development.