Vietnamese ministry unveils 2 economic growth scenarios for 2024

07 Apr '24

2 min read

Vietnamese ministry unveils 2 economic growth scenarios for 2024

Pic: Adobe Stock

Insights

Vietnam's ministry of planning and investment recently unveiled two scenarios for the economy this year.
The first scenario would see the economy grow by 6 per cent, close to the National Assembly's target, while in the second, the economy would grow by 6.5 per cent.
The government should stick to the second scenario, the minister handling the portfolio said.

Vietnam’s ministry of planning and investment recently unveiled two scenarios for the economy this year due to positive signals in the first quarter (Q1).

The country’s economy witnessed a growth of 5.66 per cent in Q1 2024, the highest compared to the same periods between 2020 and 2023.

The first scenario would see the economy grow by 6 per cent this year, close to the target approved by the National Assembly. The growth rates for the second, third and fourth quarters should be 5.85 per cent, 6.22 per cent and 6.28 per cent respectively to meet the target.

In the second scenario, the economy would expand by 6.5 per cent. Accordingly, the growth rates for the second, third and fourth quarters should be 6.32 per cent, 6.79 per cent and 7.08 per cent respectively, according to domestic media reports.

Minister of planning and investment Nguyen Chi Dung told a cabinet meeting early this month that the government stick to the second scenario due to favourable factors, despite challenges.

Shifts in global trade and investment capital flows and the recovery of demand from some markets and major export partners would pose positive opportunities.

The processing and manufacturing industry is projected to continue to gather steam moving into the second quarter with more orders pouring in, which serves as a firm foundation for the national economy to accelerate growth and meet the year’s development goals.

This will help to reduce pressure on 2025, the final year of implementing the 2021-2025 socio-economic development plan, said the minister.

He proposed introducing solutions and policies to support production and business, create jobs and improve people’s livelihoods to realise the second scenario.

The solutions include credit packages supporting a number of priority fields, accelerate public investment disbursement and consider additional tax reductions, including land rents and value-added tax.

To attract foreign investment, the minister proposed Vietnam should focus on attracting large-scale, high-tech investment projects in processing, manufacturing, electronics, semiconductor and hydrogen sectors.

Fibre2Fashion News Desk (DS)

More Textiles News - Vietnam...