HCMC – Prime Minister Pham Minh Chinh has told the State Bank of Vietnam and the banking system to focus on
HCMC – The Government is working toward stabilizing macroeconomic conditions, curbing inflation and spurring growth this year, with a focus on restructuring the securities and real estate markets.
The prime minister issued Decree 01 on economic development plans, budget revenue estimates and improvement of business conditions in 2023.
Accordingly, Vietnam will continue to follow tight monetary and expansionary fiscal policies, stabilizing the financial and forex markets by helping the money, bond, stock and real estate markets grow in a sustainable way.
The new decree also urged handling six poor-performing banks and eight projects with tardy progress to prevent cross-ownership in the banking system.
It requires the authorities to closely monitor the prices of necessities such as electricity and petroleum products, develop electronic and digital government and enhance labor quality.
Besides, ministries are tasked with devising quarterly industry-related growth scenarios and tracking domestic and global developments to impose timely measures against adverse economic and business conditions.
This year, Vietnam aims for gross domestic product (GDP) growth of 6.5% and a consumer price index expansion of 4.5%, with industrial production accounting for about 25.4-25.8% of the country’s GDP.
The decree came out amid escalating economic tensions, the Ukraine-Russia military conflict and the prolonged repercussions of Covid-19.
Meanwhile, inflation, exchange rate volatility, interest rate rises and falls in new orders from trade partners have put a strain on Vietnam’s economy.