Vietnam’s key growth engines back on track

Three key drivers of the Vietnamese economy, namely investment, consumption, and exports, show signs of recovery following a significant downturn.

Overview of the meeting. Photos: Nhat Bac

Minister of Planning and Investment Nguyen Chi Dung informed at a monthly Government meeting today [November 4].

Dung added that in October, the total retail sales of goods and consumer services revenue rose by 7%, and by 9.4% over 10 months. Moreover, more than 15,400 new businesses were registered, and 5,600 other inactive resumed operations, with a 2.9% increase in the number of reactivated businesses in the cumulative 10-month period.

The capital expenditure budget was executed at 65.8% of the planned target after 10 months,  a substantial increase of  23% compared to the same period in the previous year. Foreign direct investment (FDI) also experienced a remarkable growth of approximately 15%, with Vietnam attracting about $18 billion in FDI by the end of October, representing a 2.4% increase from 2022.

Meanwhile, import-export activities also displayed positive trends, with a 5.6% increase over the corresponding period. The 10-month trade balance reflected a surplus of more than $24.6 billion.

Minister of Planning and Investment Nguyen Chi Dung.

He also pointed out that the disbursement of the public investment reached 56.7% of the Prime Minister's annual plan,  a 5.5% increase from the previous year. Production and business activities continued to demonstrate positive changes, particularly in the agricultural and service sectors.

However, Dung acknowledged that the market, cash flow, and administrative challenges for enterprises persist. The domestic market's development remains suboptimal, and a segment of the population continues to face economic hardship.

“Unpredictable natural disasters have had a significant impact on economic and social activities,” Dung said.

The Minister emphasized that these challenges have a direct impact on businesses and the overall economy, adding pressure to macroeconomic management. While certain markets such as real estate and corporate bonds have shown positive changes, they still face difficulties that require close monitoring and proactive solutions to address emerging issues promptly.

“The existing difficulties and challenges are significant, and their resolution is contingent on prevailing trends and the broader global context, making rapid changes hard to achieve. These issues have a short-term impact on economic growth and put considerable pressure on macroeconomic and administrative management,” Dung said.

Prime Minister Pham Minh Chinh at the meeting.

During the meeting, Prime Minister Pham Minh Chinh acknowledged that the National Assembly and voters, through the vote of confidence, expressed their desire and expectations for more from the Government. He stressed the need for unwavering determination and increased efforts to reach the highest goals in terms of development and economic growth for the current year.

In response to this context, Dung from the MPI recommended the promotion of tax, fee, currency, and trade policies to swiftly revitalize business and industrial production. He emphasized the importance of leveraging opportunities and recovery trends in various markets, especially for the export of agricultural, forestry, and fishery products to major markets.

On the domestic front, Dung proposed boosting end-of-year and Lunar New Year 2024 goods consumption and efficiently mobilizing domestic and foreign resources for development investment.

“It is necessary to implement flexible and well-timed solutions and policies, both in the short and long term, to bring about an economic breakthrough and capitalize on market opportunities, thereby strengthening the three driving forces of growth and promoting a green and digital economy,” Dung said.

At a parliamentary meeting on October 23, Prime Minister Pham Minh Chinh acknowledged that the economy faces adverse external factors and persistent internal limitations. The economy's competitiveness and resilience remained constrained.

 In response to these difficulties, he stated that the Government's priorities include stimulating growth, maintaining macroeconomic stability, controlling inflation, and ensuring critical economic balances.

“The Government is stepping up efforts to ensure a GDP growth rate above 5% for the year, lower than the target set by the National Assembly at 6.5%. Inflation is expected to be around 3.5-4%,” Chinh said.

Hanoi to ensure sufficient drinking water for locals

Vice Chairman of the Hanoi People's Committee Ha Minh Hai at the conference.

At a government press conference on the same day, Vice Chairman of the Hanoi People’s Committee Ha Minh Hai addressed the water shortage in Thanh Ha urban area. He said that on October 19, efforts began to regulate the use of surface water sources in the Duong River, and water was delivered by tanker trucks on an hourly basis.

Citizens were encouraged to collect and store water for daily use. Beginning on  October 23, water started accumulating in cisterns and rooftop tanks. By the morning of October 30, the water supply had become "relatively stable."

Hai added that shortly, the city authorities will instruct related water supply companies to provide water to the Thanh Ha urban area.

“Looking ahead, there is an urgent need to renovate the local water supply station in Thanh Ha urban area to ensure both capacity and water quality, with a target completion date of  January 2024,” Hai said.

To ensure a stable water supply for the entire city, various water projects are planned to be expedited, including the Red River Surface Water Plant, Da River Surface Water Plant phase II (component 2), the construction investment project to increase the capacity of the Bac Thang Long - Van Tri Water Plant, and the Xuan Mai Water Plant in Hoa Binh.

The city also intends to take decisive action to terminate and cancel projects that are progressing slowly or where the investors cannot carry them out, he noted.

In areas facing water shortages, Hai said that the Hanoi Department of Construction and district authorities will implement solutions to ensure an adequate water supply for daily activities, such as using booster pumps, establishing clean water loops, and storing water in tanks. In addition, water will be transported by tanker trucks to meet the needs of residents.

Thanh Ha urban area, located in Thanh Oai district, is home to 23 buildings housing approximately 16,000 residents. Since early October, many residents have reported that the supplied clean water has a strong odor, causing skin rashes and allergies.

On October 10, the Institute of Environmental Technology under the Vietnam Academy of Science and Technology released test results showing that the water contained ammonium levels of 11.46 mg/l, which is 38 times the allowable limit. Additionally, the chlorine content level was well above the limit.  

Thanh Ha Clean Water Joint Stock Company officials said that the water supply was insufficient. Normally, the source from the Duong River surface water plant provides around 2,000 m3 of water, but at present, it's only supplying 700 m3 per day and night.

As the situation escalated,   the water supply from underground sources was cut off on October 14, leaving tens of thousands of residents without access to running water and causing significant disruptions in their daily lives.

In response to the crisis, on October 18, the Secretary of the Hanoi Party Committee, Dinh Tien Dung, called on the municipal People's Committee to immediately provide emergency water through tanker trucks or other suitable measures to immediately meet the basic daily water needs of Thanh Ha urban area residents. This action aimed to ensure that people do not have to fetch water from distant and potentially unsafe sources.