On the morning of August 5, Prime Minister Pham Minh Chinh chaired the regular Government meeting for July 2024 with a discussion agenda including many important contents.

Attending the meeting were Vice President Vo Thi Anh Xuan, Deputy Prime Ministers, members of the Government, leaders of ministries, branches, Government agencies, leaders of the Central Economic Committee, Economic Committee, Finance and Budget Committee of the National Assembly, and the Office of the National Assembly.

The meeting focused on discussing the socio-economic situation in July and the first 7 months of the year, the allocation and disbursement of public investment capital, the direction and administration of the Government, some key tasks in the coming time and some other important contents.

Purchasing Managers' Index at 5-year high

Reports and opinions presented at the meeting unanimously assessed that the socio-economic situation in July and the first 7 months of the year achieved 13 outstanding results.

First, the economy continued to grow positively in all three sectors. The agricultural sector continued to grow steadily.

The industrial sector recovered well, increasing by 0.7% in July compared to June and 11.2% over the same period; the total increase in 7 months was 8.5%. 60/63 localities had an industrial production index in July increasing compared to the same period, while 3 localities had a decrease. Notably, the Purchasing Managers' Index (PMI) in July 2024 reached 54.7 points - the highest since November 2018 with output and new orders increasing sharply.

The service sector continued to grow well; total retail sales of goods and consumer service revenue increased by 9.4% in July and by 8.7% in the first 7 months.

Second, the macro economy continued to be stable, inflation was well controlled, and major balances were ensured. The average consumer price index (CPI) in the first 7 months increased by 4.12%, up 0.04% compared to June (core inflation increased by 2.73%, up 0.02% compared to June) in the context of increasing basic wages. Energy security and food security were ensured (rice exports reached 5.18 million tons, turnover of nearly 3.3 billion USD, up 5.8% and 25.1% respectively compared to the same period); the labor market recovered well, basically ensuring the balance between labor supply and demand.

Third, exports continued to increase, with a large trade surplus, contributing to ensuring the balance of payments. Exports in July increased by 6.7% compared to June and 19.1% compared to the same period last year; the total increase in 7 months was 15.7% (domestic sector increased by 21.1%, higher than FDI sector increased by 13.8%); imports increased by 18.5%; trade surplus was 14.08 billion USD.

Fourth, the State budget revenue increased sharply, the State financial and budget situation continued to improve. The total State budget for the first 7 months is estimated to reach 69.8% of the annual estimate, up 14.6% over the same period (while 87,200 billion VND of taxes, fees, and charges have been exempted and reduced). Public debt, government debt, foreign debt, and budget deficit are controlled below the prescribed limit.

Fifth, tourism has recovered strongly, surpassing the same period before the pandemic. International visitors in July reached 1.15 million; the total number in the first 7 months reached nearly 10 million, up 51% over the same period in 2023 and up 1.9% over the same period in 2019 before the COVID-19 pandemic.

Sixth, development investment continued to achieve positive results, creating momentum to promote growth. Disbursement of public investment capital in the first 7 months reached 34.68% of the plan. FDI attraction reached 18 billion USD, up 10.9%; realized FDI capital reached 12.55 billion USD, up 8.4%, the highest in the past 5 years.

Seventh, business development continues to be positive. In July, 14,700 new businesses were registered, up 7.3% year-on-year; in the first 7 months, 139,500 businesses were newly established and re-entered the market, up 5.9% year-on-year (higher than the number of businesses withdrawing from the market).

Eighth, cultural and social fields are focused on; social security is ensured. Organize well the activities to celebrate the 77th anniversary of War Invalids and Martyrs Day. Implement correctly, fully and promptly the pension regimes and policies, social insurance benefits, preferential subsidies for people with meritorious services, and social subsidies according to the new salary from July 1, 2024. The total budget for subsidies and preferential allowances for people with meritorious services to the revolution increased by more than VND 5,300 billion. In July, 95.8% of households assessed that their income was stable or higher than the same period.

Ninth, implement salary policy reform from July 2024, receiving consensus from the entire political system and people nationwide.

Tenth, focus on building and basically completing the promulgation of decrees guiding the Land Law (amended), Housing Law (amended), Real Estate Business Law (amended), and Law on Credit Institutions (amended).

Eleventh, administrative reform, especially cutting and simplifying administrative procedures, digital transformation, Project 06 and anti-corruption and negativity were promoted, contributing to strengthening people's trust.

Twelve, political and social stability; national defense and security are strengthened; social order and safety are maintained. Comrade To Lam's election as General Secretary by the Central Committee with 100% of the votes has affirmed the high solidarity and unity. Foreign affairs and international integration are promoted; the country's prestige and position are enhanced; many international organizations and experts continue to highly appreciate the results and prospects of the Vietnamese economy.

Thirteen, promptly overcome the consequences of natural disasters and floods, especially supporting families whose loved ones have died, whose houses have been swept away or damaged...

The results of the following month are higher than the previous month and compared to the same period last year.

In his concluding remarks, Prime Minister Pham Minh Chinh basically agreed with the reports and opinions at the meeting, emphasizing some additional contents on the direction and management work and the results achieved in July and the first 7 months of the year.

In July, the Government coordinated with relevant agencies to organize the State Funeral of General Secretary Nguyen Phu Trong in a thoughtful and safe manner, expressing the deep affection and gratitude of our entire Party, people and army towards him.

The Prime Minister assessed that since the beginning of the year, all levels, sectors and localities have focused on proactively, drastically and flexibly implementing tasks and solutions according to resolutions and conclusions of the Central Committee, Politburo, Secretariat, National Assembly, Government and direction of the Prime Minister.

In particular, we have closely monitored and grasped the situation, flexibly, promptly and effectively handled short-term issues, ensuring harmony with medium- and long-term tasks and solutions. Ministers, heads of sectors, and Chairmen of People's Committees of provinces and cities have proactively and actively implemented tasks according to their functions, tasks and powers.

In July, 23 decrees, 20 resolutions of the Government and 3 decisions, 8 telegrams, 4 directives of the Prime Minister were issued; in total, 104 decrees, 153 resolutions, 812 decisions, 24 directives, 71 telegrams were issued in 7 months.

The Prime Minister has issued many telegrams and directives on promoting growth, controlling inflation, stabilizing the macro-economy; overcoming the consequences of floods, preventing and combating natural disasters and epidemics; organizing national conferences on promoting public investment, urging the progress of key infrastructure projects, 500 kV line 3, etc.

Regarding the socio-economic results in July and the first 7 months of 2024, the Prime Minister summarized that the situation continued to trend positively, with the results in July generally higher than in June and the overall 7 months better than the same period in 2023 in most areas.

On behalf of the Government, the Prime Minister acknowledged, thanked, commended and highly appreciated the efforts and endeavors of the members of the Government, leaders of ministries, branches, agencies, Chairmen of People's Committees of provinces and cities, and the close, synchronous and effective coordination of agencies in the political system, contributing to the common achievements of the whole country.

Besides the achieved results, the Prime Minister pointed out that the socio-economic situation still has difficulties and challenges.

Inflationary pressure remains high, especially due to strong fluctuations in crude oil and food prices; the global financial, monetary and real estate markets are still risky; global growth, trade and investment are forecast to recover but still contain many risks. Production and business in some sectors are still difficult. Access to credit capital is still difficult. The real estate market has initially stabilized, but difficulties and problems are still slow to be resolved. The implementation of the 140,000 billion VND credit package for social housing is very slow; there is still 26,500 billion VND of unallocated public investment capital.

The lives of a part of the population are difficult, especially in remote, border and island areas. The damage caused by natural disasters in the first 7 months was 2,123 billion VND, 2.3 times higher than the same period in 2023. The crime situation, especially cybercrime, is still complicated; there have been a number of serious labor accidents and fires...

After analyzing the causes of the achieved results, limitations and shortcomings, the Prime Minister basically agreed with the lessons learned stated in the report, the opinions expressed at the meeting and emphasized the experiences.

Accordingly, it is necessary to strengthen solidarity and unity within agencies and units, within the entire political system and the entire population; grasp the practical situation, respond to policies promptly, flexibly and effectively; strengthen discipline, order and responsibility of leaders; promote decentralization, increase proactiveness, flexibility, creativity, self-reliance, and self-reliance, associated with resource allocation, improve the implementation capacity of subordinates and strengthen inspection, supervision and control of power; pay more attention to information and communication work, especially policy communication, contributing to strengthening trust, creating excitement, promoting the will to be self-reliant, self-reliant, determined and striving to rise up.

In the coming time, the Prime Minister forecasts that the world situation will continue to evolve rapidly, complicatedly, and unpredictably; opportunities, advantages, difficulties, and challenges will intertwine, but difficulties and challenges will be greater.

The Prime Minister clearly stated the goal of continuing to maintain macroeconomic stability, control inflation; at the same time, promote stronger growth, ensure major balances and have higher surpluses, well control public debt, government debt, foreign debt, budget deficit; maintain political stability, social order and safety, and national border sovereignty. The general guiding viewpoint is that the following month will achieve higher results than the previous month, the following quarter will be better than the previous quarter, and the results in 2024 will be greater, more comprehensive, and more comprehensive than in 2023.

Regarding the tasks and solutions for the coming time, the Prime Minister basically agreed with the reports and opinions and emphasized 12 key contents.

Firstly, Ministers, heads of sectors, Chairmen of People's Committees of localities, according to their functions, tasks and authority, closely follow the situation, organize and implement synchronously, drastically and effectively the resolutions of the Party, conclusions and directions of the Central Committee, the Politburo, the Secretariat, key leaders, resolutions of the National Assembly, directions and administration of the Government and the Prime Minister, work with focus and key points, complete each task thoroughly; assign "clearly to people, clear tasks, clear responsibilities, clear deadlines, clear products, clear effectiveness", strengthen supervision, inspection, implement emulation and rewards, and promptly handle violations.

Second, continue to prioritize promoting growth associated with maintaining macroeconomic stability, controlling inflation, and ensuring major economic balances.

Continue to operate monetary policy proactively, flexibly, promptly and effectively; coordinate synchronously, harmoniously and closely with a reasonable, focused, key expansionary fiscal policy and other macroeconomic policies.

Regarding monetary policy, the State Bank focuses on stabilizing exchange rates and the foreign exchange market; increasing access to credit capital, focusing on priority sectors, striving for annual credit growth of about 15%; continuing to reduce lending interest rates. Regarding fiscal policy, the Ministry of Finance strives to increase revenue, save expenditure, drastically implement digital transformation, apply electronic invoices in revenue management; thoroughly save regular expenditure. Effectively implement policies to extend, exempt, and reduce taxes, fees, and charges.

Synchronously implementing inflation control solutions according to the set targets, the Ministries of Finance, Industry and Trade, Agriculture and Rural Development, Education and Training, Health and relevant agencies focus on ensuring market stability and prices of essential goods. Prepare carefully, assess the impact, and have a roadmap to adjust prices appropriately for services managed by the State (education, health). Resolutely not to let shortages occur, ensure adequate supply of electricity and gasoline, meeting production and consumption requirements in all situations.

At the same time, the Ministries of Planning and Investment and Finance proactively develop the Socio-Economic Development Plan, the National Five-Year Financial Plan, and the Medium-Term Public Investment Plan for the 2026-2030 period. In particular, it is important to note that central budget investment expenditures should be focused on important, key national projects, projects with inter-regional and international connections.

Third, focus on renewing traditional growth drivers and strongly promoting new growth drivers. Regarding investment, the Ministry of Planning and Investment will take the lead in accelerating the implementation of public investment projects and three national target programs, promoting private investment; enhancing public-private partnership; and selectively attracting FDI.

Regarding exports, consolidate large, traditional markets; expand new markets (UAE, Halal, Latin America); support businesses in preparing conditions, meeting new standards, green standards, promoting, promoting trade, accessing potential markets and investigating anti-dumping on Vietnamese goods...

Regarding consumption, promote market development, stimulate domestic consumption, the campaign "Vietnamese people prioritize using Vietnamese goods", e-commerce, cashless payment (associated with electronic invoices, tax collection).

There are effective mechanisms and policies to strongly promote new growth drivers (especially in terms of institutions, mechanisms, policies; regional economic development, regional and urban linkages; digital transformation, green transformation, circular economy, sharing economy, knowledge economy, value-added industries and fields, technologies such as semiconductor chips, AI...).

The Ministry of Planning and Investment shall preside over reviewing and proposing mechanisms and policies to create breakthroughs in these areas; in which, attention shall be paid to building and perfecting the legal framework for green economic development (green credit market, green transformation, circular economic development, etc.); researching policy packages with a large enough scale, suitable and feasible to support businesses, promote new growth drivers such as semiconductor chips, AI, etc. The Ministry of Finance shall preside over urgently completing the Project on developing the carbon market in Vietnam.

Fourth, resolutely promote further disbursement of public investment capital and three national target programs. Continue to promote the activities of the five working groups of the Prime Minister and 26 working groups of Government members.

The Ministries of Transport, Industry and Trade, Planning and Investment, and Construction, according to their functions, tasks, and authority, shall accelerate the construction progress of important and key national infrastructure projects and works (especially the 500KV project of circuit 3 Quang Trach - Pho Noi, which will be inaugurated on the occasion of the 79th anniversary of the August Revolution and National Day September 2); the expressway system (striving to put about 3,000 km into operation by 2025).

Urgently allocate the remaining VND 26,500 billion of public investment capital. The Ministry of Planning and Investment resolutely transfers capital to tasks and projects with quick disbursement and need for additional capital before August 15, 2024.

Fifth, promote the improvement of institutions and laws, reform administrative procedures, and promote national digital transformation.

Focus on reviewing and proposing solutions to handle mechanisms, policies, and legal regulations that are contradictory, overlapping, inadequate, and not suitable for practice for amendment and supplementation; report to the Steering Committee to review and handle problems in the system of legal documents.

Urgently submit for promulgation the Decree on the use of regular expenditure funds for investment expenditures (to repair and upgrade works under 15 billion VND) (Ministry of Finance presides) and the Decree on self-produced and self-consumed rooftop solar power (Ministry of Industry and Trade presides).

Research and amend the Law on Public Investment, the Law on Investment, the Law on Bidding, the Law on Investment under the public-private partnership model, the Law on Enterprises and other legal provisions that are no longer suitable in the form of one law amending many laws (Ministry of Justice presides).

Resolutely cut and simplify administrative procedures; promote digital transformation, Project 06, build a National Data Center. Urgently issue a Plan to implement issued plans, especially regional and provincial plans.

Sixth, continue to focus on thoroughly handling outstanding and long-standing issues.

Seventh, focus on cultural, social and environmental fields; ensure social security and people's lives.

The Ministries of Agriculture and Rural Development, Natural Resources and Environment, and localities closely monitor the developments of natural disasters, storms and floods, respond promptly and effectively, and minimize damage; do not leave anyone homeless, do not let anyone go hungry or cold. Do a good job of supporting people to overcome the consequences of natural disasters; ensure timely rice distribution and timely support, do not let anyone go hungry.

Ministries, sectors and localities have stepped up their mobilization and support for the National Fund to join hands in eliminating temporary and dilapidated houses for poor and near-poor households. The Ministry of Health has focused on handling issues and implementing projects at Viet Duc Hospital and Bach Mai Hospital, Branch 2. The Ministry of Education and Training has prepared well for the new school year, not increasing textbook prices at this time; ensuring hygiene and safety in schools; preventing drowning in children. The Ministry of Labor, War Invalids and Social Affairs has strengthened its grasp of the situation; proactively taken measures to ensure a balance between labor supply and demand, especially in industrial zones.

Eighth, promote administrative procedure reform, improve the investment and business environment; promote national digital transformation; request ministries, branches and localities to develop a digital transformation project connected with Project 06 in August 2024.

Ninth, strengthen national defense and security; promote the fight against corruption and negativity.

Tenth, improve the effectiveness of foreign affairs and international integration. Organize foreign affairs activities of senior leaders well; proactively implement high-level agreements and prepare well for upcoming visits. Effectively exploit signed free trade agreements (FTAs) and promote negotiations of new FTAs.

Eleventh, strengthen information and communication work, especially communication of policies, good models, and good practices, contributing to creating social consensus and an enthusiastic atmosphere, striving to improve the whole society.

Twelve, actively carry out the tasks of the Socio-Economic Subcommittee serving the 14th National Party Congress, carefully prepare for Party Congresses at all levels, towards the 14th National Party Congress; well prepare the Projects to report to the Politburo, the Secretariat and documents serving the Central Conference and the 8th Session of the 15th National Assembly, ensuring progress and quality.