The national economy secured growth of 5.66% in the first quarter, the highest rate compared to the same periods from 2020 to 2023.

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

In the second scenario, the economy would expand by 6.5%, approaching the target approved by the National Assembly. Accordingly, the growth rates for the second, third, and fourth quarters should be 6.32%, 6.79%, and 7.08%, respectively.

Speaking at a monthly Cabinet meeting held on April 3 in Hanoi, Minister of Planning and Investment Nguyen Chi Dung proposed that the Government stick to the second scenario due to favourable factors, although challenges remain ahead.

In his view, the opportunities are likely to come from major global positive trends, including shifts in global trade and investment capital flows, as well as the recovery of demand from some markets and major export partners.

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.

To realise the second scenario, Minister Dung proposed that the Government introduce solutions and policies to support production and business, create jobs, and improve people’s livelihoods.

It is therefore important to implement proactive, flexible, timely, and effective monetary policies, create maximum convenience, and facilitate business access to credit capital, he stressed.

Among other solutions, he proposed that the Government effectively deploy credit packages in support of a number of priority fields, accelerate public investment disbursement, and consider additional tax reductions, including land rents and value-added tax.

The Government should continue to strongly promote and renew growth drivers in investment, consumption, and export, while simultaneously bringing into full play new growth drivers from digital transformation and green transformation, he stressed.

With regard to foreign investment attraction, the Minister proposed that Vietnam focus on attracting large-scale, high-tech investment projects in the processing, manufacturing, electronics, semiconductor, and hydrogen industries. At the same time, he said the Government should promptly handle any difficulties and problems faced by foreign invested enterprises to speed up the progress of projects.

Vietnam recorded 5.05% in economic growth last year. During the year-end session, the National Assembly approved major socio-economic development targets for the year, with GDP growth projected to rise between 6% and 6.5%.

VOV