For 6% growth, the economy needs to expand by 5.85%, 6.22% and 6.28% in the second, third and fourth quarters, Minister of Planning and Investment Nguyen Chi Dung said at a government meeting Wednesday.

For 6.5%, they have to go up to 6.32%, 6.79% and 7.08%, he said.

The scenarios are predicated on the first-quarter growth of 5.66%, the highest rate since 2020, and a steady inflation rate of 3.77%, he explained.

While his ministry leans toward the latter scenario, it acknowledges that the economy still faces certain problems and challenges, he said.

Consumption demandgrew at a slower pace than in the first quarter in 2023 and 2011-19 [before Covid], he said.

This lack of demand and high competition are the biggest challenges for manufacturing businesses this year, he said.

According to a ministry report, nearly 74,000 businesses have exit the market in the first quarter, a 23% increase year-on-year, most of them small and medium-sized enterprises.

The aviation industry is dealing with anaircraft shortage, resulting in lower flight frequencies on many domestic routes, Dung said.

This has led to a surge in airfares, affecting tourism.

Bank lending interest rates have decreased, but businesses still find it difficult to access credit, the minister said.

The non-performing loans ratio was 4.79% by the end of January, more than double the 2.03% rate at the end of 2022, resulting in higher costs for the banking system.

The cyberattackon brokerage VNDirect Securities last month had a significant impact on investor sentiment, the ministry said.

It could also jeopardize the chances of the Vietnamese stock market to be upgraded from Frontier to Emerging in the FTSE Russell global classification, it added.

Prime Minister Pham Minh Chinh instructed the State Bank of Vietnam to ensure sufficient capital flows into the economy, closely monitor bad debts, further reduce lending interest rates, and have measures in place to keep exchange rates and gold prices steady.

He said the Ministry of Finance should mitigate the increasing risk of cyberattacks and get the stock market upgraded at the earliest.

Local governments need to make their best efforts to help the economy achieve the 6.5% growth target, he added.

Impressive economic growth of Bac Giang

BAC GIANG – Amid many difficulties, Bac Giang still maintains a good economic growth rate. In 2022, the province's economic growth rate reached 19.3 percent, ranking second in the country. In 2023, it hit 13.45 percent, nearly 2.5 times higher than the national average and rising to the top position. Bac Giang becomes a bright spot in socio-economic development and creates a strong impression on other localities.

Standard Chartered forecasts Vietnam's 2024 GDP growth at 6.7%

Standard Chartered Bank expects Vietnam to have a robust GDP growth of 6.7% in 2024 (6.2% and 6.9% in the first half and second half of the year, respectively).

2023 GDP growth estimated at 5.05%

Vietnam’s gross domestic product (GDP) in 2023 is estimated to have increased 5.05% compared to 2022, surpassing only the growth rates posted in 2020 and 2021 during the 2011-2023 period.

Vietnam prioritises driving growth momentum this year: government’s press conference

Vietnam will focus on boosting growth, maintaining macroeconomic stability, controlling inflation, and ensuring key balances of the economy in 2024, stated Minister-Chairman of the Government Office Tran Van Son while chairing a regular government press conference in Hanoi on January 5.

State Bank of Vietnam sets 15% credit growth target

The State Bank of Vietnam has set banks a credit growth target of 15% this year, up one percentage point from last year’s target.

Source: VnExpress