National economy bouncing back

The country’s index of industrial production (IIP) in July expanded 3.9% from the previous month and 3.7% against the same period last year, statistics show.

In the first seven months of this year, Vietnam enjoyed a trade surplus of more than 16.5 billion USD, and foreign investment attraction were recovering after a decline for six consecutive months.

Deputy Minister of Planning and Investment Tran Quoc Phuong attributed the results to the Government’s efforts in removing obstacles, especially those facing the real estate and corporate bond markets as well as investment projects.

However, he said, fulfilling the yearly growth target of 6.5% is a hard nut to crack that requires breakthrough mechanisms and policies.

The country’s index of industrial production (IIP) in July expands 3.9% from the previous month and 3.7% against the same period last year. (Photo: VNA)

According to the official, the Ministry of Planning and Investment has proposed the Government to assign other ministries, agencies, and localities to review and perfect relevant mechanisms, policies and legal regulations to untangle the knots in production and business.

The ministry also stressed the need to further streamline administrative procedures, carry forward the role of growth drivers like consumption, investment and export, maintain macro-economic stability and control inflation, and ensure major economic balances, he said.

Associate Prof. Dr. Tran Dinh Thien, former Director of the Vietnam Institute of Economics, also pointed out that since late 2022, the number of businesses that declared bankruptcy and temporarily suspended operation, especially small- and medium-sized ones, has been on the rise.

The workforce index in major industrial hubs like Binh Duong, Dong Nai, Thai Nguyen, and Bac Ninh is falling, posing challenges to the domestic industrial sector, he said, adding that foreign investment attraction has yet to fully recover after the COVID-19 pandemic.

Given such obstacles, it is a must to re-identify the economic structure and employ special solutions matching the current situation, Thien said.

“To achieve the yearly target, it requires great efforts and strong determination of all agencies,” he stressed.

Sharing Thien’s views, Associate Prof. Dr. Nguyen Duc Trung, Rector of Ho Chi Minh City University of Banking, suggested unlocking resources and promoting private investment in important spheres.

The national economy grew only 3.72% in the first two quarters of this year, lower than the scenario set by the Government, while revenue to the State coffer dropped 7.8% in the first seven months./.