The National Assembly's Standing Committee on October 9 discussed the government’s report on the results of the implementation of the 2024 socio-economic development plan and preparation for the next year.

Presenting the government’s report, Dung said the GDP economic growth rate in the first nine months of the year was higher than the targeted level with macroeconomy stabilized, inflation controlled, and major balances ensured.

Vietnam’s GDP has been growing quarter on quarter which was cited by economic institutions. The GDP growth rate in the third quarter was 7.4 percent over the same period last year and the figure was 6.82 percent in the last nine months. With the figures, Vietnam is among the fastest growing economies in the region and the world.

In the last months of the year, Dung said, the government will continue to implement tasks and key solutions in priority fields with priority given to striving for a growth rate of over 7 percent by the year end.

The National Assembly’s Economics Committee chair Vu Hong Thanh agreed with the government’s assessments about the achievements in the first nine months.

“Positive results have been reported for the international economic sector, where import-export and FDI (foreign direct investment) obtained high growth rates, becoming the bright spots on the national economy’s panorama,” Thanh commented.

National key transport works have been sped up to be put into operation soon, thus contributing to socio-economic development.

Significant progress has been made in power infrastructure development. The 500KV Circuit 3 from Quang Trach to Pho Noi project, capitalized at $1 billion, was inaugurated after six months of execution. On average, it takes 2-3 years to implement a project with the same scale.

Land prices unaffordable

Thanh cited difficulties faced by the national economy and Vietnamese enterprises.  There are risks in the finance and monetary market. The bad debt ratio is still high. The handling of weak commercial banks is going slowly. Credit growth rates in the first months of the year were low. 

The fluctuations of the dong/dollar exchange rate sometimes affect enterprises’ operation. The gold market management is problematic, putting pressure on the forex market and exchange rate. Cybersecurity risks in the financial system have become permanent with immeasurable consequences.

The real estate market has shown signs of recovery, but difficulties still exist. The apartment prices in the primary and secondary markets are inflated, making housing products unaffordable for most people.

Land prices in inner and suburban districts have bounced back, especially in suburban areas which are about to be upgraded into inner districts.

The fact that many buyers gave up after winning land auctions has had a negative impact on the housing market. 

Market manipulation, price inflation and artificial price increases have pushed prices up to abnormally high levels. Analysts say that real estate transactions are mostly among speculators, because businesses and people cannot access land because of very high prices and unaffordability.

The inspectors of the government’s report also mentioned the high amount of collections from students when the new academic year began in September. The public was stirred up with the "false study, real degree" cases.

Tasks and solutions

The National Assembly’s Economics Committee has outlined tasks and solutions for the time to come.

The government needs to ensure fast and sustainable economic growth by stabilizing the macro economy and controlling the inflation and exchange rate.

It has been urged to apply special measures to help enterprises recover production in typhoon-stricken areas; and build in-depth training programs in majors related to the 4.0 industrial revolution, such as information technology, AI and automation.

Regarding infrastructure development, Thanh emphasized the need to accelerate investments in important infrastructure items such as highways, high-speed railways, seaports, airports and smart logistics system which help connect Vietnam and international markets.

The National Assembly’s Economics Committee also requested to pursue a proactive monetary policy; strengthen control and supervision over markets of gold, securities, corporate bond and real estate; and apply solutions to consolidate investors’ confidence.

Thu Hang