HCMC – The National Assembly (NA) Economic Committee has voiced concerns over the tough challenges which Vietnam’s economy will cope with in the months ahead.

Vu Hong Thanh, head of the NA Economic Committee, said it is unlikely that the country will see any breakthrough in gross domestic product growth by the second quarter of the year.

Thanh made the statement during the fifth plenary session of the 15th NA that opened this morning, May 22, in Hanoi. Legislators plan to take into consideration eight draft laws and three draft resolutions, in addition to looking into the national socioeconomic performance, according to the Vietnam News Agency.

Thanh stated that the low economic growth rate in quarter one was primarily attributed to a 4% decline in industry and construction between January and March.

In the year to April, Vietnam’s industrial production index had dipped by 1.8% year-on-year, while electricity consumption inched down by 0.4% over data reported in the same period in 2022.

The NA Economic Committee said that the health of Vietnam’s business community is deteriorating, citing an average of 19,200 businesses leaving the marketplace a month.

The committee proposed the Government direct the central bank to further cut interest rates to support local firms and provide momentum for recovery.

In addition, the Government should consider increasing personal income tax deductions for employees’ dependents, the committee said in a statement.