Positive Indicators for Vietnam’s Economy in Early 2024

Vietnam's economy kicked off to a strong start in the early months of 2024, exhibiting promising signs. Based on experts' analysis and statistical data, the economic landscape in the beginning of the year appears to be painted in positive hues.

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In 2024, several significant trends continue to emerge in the global economy. The global economy is still in a transition phase, with uncertainty, unrest, and insecurity on the rise due to upcoming elections in many countries, which are expected to lead to significant economic policy adjustments.

In light of this situation, Phan Duc Hieu, a Standing Member of the National Assembly’s Economic Committee, has affirmed that the National Assembly and the Government have determined to revitalize the economy by prioritizing growth promotion and macroeconomic stability in 2024.

“The Government has proposed a range of solutions to achieve the goal of economic growth in 2024. These solutions focus on four major areas, which include innovation, green growth, and sustainable development; enhancing institutions, particularly in green energy development, energy security, and energy conversion; promoting the manufacturing and processing industry; and emphasizing human resource training and attracting investment, particularly FDI investment.”

Photo: VOV

In the face of common global challenges, Vietnam has achieved notable outcomes since the beginning of this year. These include significant growth in industrial production, with the processing and manufacturing industry expanding by 19.3% year on year. The industrial production index in January 2024 increased in 60 localities across the country and decreased in 3 localities. Furthermore, 13.5 thousand new businesses were established, representing a 2.2% increase compared to the previous month and a 24.8% increase compared to the same period last year.

According to the General Statistics Office of Vietnam, the estimated total retail sales of goods and consumer service revenue in January 2024 reached VND 524.1 trillion, with a month-on-month increase of 1.6% and a year-on-year increase of 8.1%. Notably, the realized investment capital from the state budget in the first month of this year amounted to VND 31.1 trillion, reflecting a year-on-year increase of 12.5%.

Dr. Le Duy Binh, an economic expert, commented on these developments: “There has been significant improvement in private investment, which is a crucial element of the economy. The increased disbursement of public investment capital is another positive aspect that helps stimulate investment demand and the government sector. These factors are promising and suggest a better year for 2024.”

In 2023, businesses often encountered difficulties in accessing capital and financial resources. However, in 2024, many experts believe that the pressure on monetary policy will decrease, leading to a more favorable environment for the banking industry.

Photo: VOV

To aid economic recovery and growth, Bui Thuy Hang, Deputy Director of the Monetary Policy Department at the State Bank of Vietnam, stated that the monetary policy orientation in 2024 will focus on expanding credit support for businesses, enabling them to recover and seize new development opportunities.

“The State Bank has set a growth target of 15% for 2024. This target is flexible and subject to adjustments based on market developments. The State Bank will continue to implement credit management solutions, directing credit institutions to allocate capital to the manufacturing industry and sectors that foster economic growth. Additionally, loan procedures will be simplified to enhance access to capital for individuals and businesses,” added Hang.

Dau Anh Tuan, Deputy General Secretary of the Vietnam Chamber of Commerce and Industry, acknowledged that “Businesses highly appreciate tax and fee reduction policies. These policies are quickly implemented without unnecessary processes, saving time and ensuring transparency. Furthermore, they bring direct benefits, providing easy, fair, and transparent access to financial resources.”

Recently, several international organizations have made optimistic forecasts about Vietnam’s economy in 2024. Most forecasts indicate that Vietnam’s growth will exceed 6%. The positive start and early signals witnessed in the first months of this year have strengthened the confidence of international organizations in Vietnam’s economic prosperity going forward.

Hai Dang