Topic: Vietnam's macroeconomics

Despite efforts to stabilize the macroeconomy, control inflation, and boost growth, results remain unsatisfactory.

A report from the VNDirect Securities Company shows that tight liquidity has been a concern for the banking system in recent times, but the risk to system liquidity is not significant. The efforts of authorities to combat “dollarization” in the economy and increase cashless transactions have brought significant results, while the macroeconomic situation remains stable and the health of the banking system has improved.

In its updated macro outlook, VnDirect forecasts many positive scenarios for Vietnam’s economy. GDP growth will reach 7.7 per cent this year and inflation 3.2 per cent, while exports will increase 15 per cent. FDI, meanwhile, will fall 5-10 per cent in registered capital but increase 10 per cent in disbursed capital, with registered capital to recover from 2023.

Prime Minister Pham Minh Chinh has signed Directive No. 15/CT-TTg on key tasks and solutions to maintain macro-economic stability, control inflation, promote growth, and ensure major balances in the economy in the new circumstances. The Directive assigns specific tasks to each ministry, branch, and locality, in which the State Bank of Vietnam (SBV) must manage monetary policy in a proactive and flexible manner, both to control inflation and to support economic recovery and growth.

On August 3, at the regular government meeting for July, Prime Minister Pham Minh Chinh said the socio-economic situation in the first seven months of the year continued to be stable and prosperous in most fields. The macro-economy is also stable, inflation is under control, growth is continuing, and balances in revenue - expenditure, exports, imports, food, energy, and labor are guaranteed.

Prime Minister Pham Minh Chinh chaired a meeting on July 12 between the Government Standing Committee and the Standing Board of the Party Committee of the centrally-run Businesses’ Sector on restructuring and improving the operational efficiency of State-owned enterprises (SOEs). He emphasized that they must make important contributions to macro-economic stability and that the goal by 2025 is to basically complete the rearrangement and transformation of SOE ownership.

On July 4, at the government’s regular meeting for June, Prime Minister Pham Minh Chinh said the country’s economy recorded some positive results in the first half of the year despite the difficulties and challenges. Regarding key tasks in the second half, he said priority must be given to stabilizing the macro-economy and controlling inflation.