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Gov't must prioritise administrative restructuring,keo nha cai 5.net economic growth: PM

March 06, 2025 - 07:00 Your browser does not support the audio element. The Government’s reports showed that despite the positive results, the external challenges affecting economic growth are increasing.

Prime Minister Phạm Minh Chính chairs the regular Government meeting in Hà Nội on Wednesday. — VNA/VNS Photo Dương Giang

HÀ NỘI — Administrative restructuring is one of the Government’s priorities in the near future, in addition to ensuring macroeconomic stability and responding to trade conflicts, said Prime Minister Phạm Minh Chính as he chaired a regular Government meeting on Wednesday.

Government reports presented at the meeting showed that for February and the first two months of 2025 recorded positive socio-economic growth, with macroeconomic stability and controlled inflation.

The Consumer Price Index (CPI) in January-February increased by 3.27 per cent compared to the same period last year. State budget revenue reached 25.4 per cent of the estimate (up 25.7 per cent year-on-year).

The import-export turnover increased by 12 per cent, with a trade surplus estimated at US$1.47 billion. Registered FDI (foreign direct investment) capital exceeded $6.9 billion, up 35.5 per cent compared to the same period last year.

By the end of February, VNĐ748.3 trillion ($29.3 billion) of public investment funding was allocated, reaching 90.6 per cent of the plan, of which VNĐ60.4 trillion ($2.4 billion) was disbursed (7.32 per cent of the plan).

Approximately VNĐ20 trillion ($783 million) has been allocated to national target programmes on new-style rural area development, socio-economic growth in ethnic minority and mountainous regions, and sustainable poverty reduction. The current disbursement is estimated at VNĐ4.4 trillion ($172.3 million).

The Government’s reports also assessed that despite the positive results, the external challenges affecting economic growth are increasing, while growth drivers have not shown substantial progress.

Ministries, sectors and localities are recommended to innovate their operations to realise growth plans and prepare flexible measures for external policy changes, particularly tariffs and import-export policies.

They must also accelerate local apparatus streamlining while ensuring uninterrupted operation, and taking comprehensive measures to reach the growth target of 8 per cent in 2025.

Accordingly, several provincial-level administrative units are planned to be merged, while the district-level administrative units will be removed. Merger plans of commune-level administrative units will be submitted to the Government’s Party Committee before reporting to the Politburo.

In regard to economic growth, PM Chính stressed proactive, flexible, effective and comprehensive monetary policies, alongside reasonable fiscal policies.

Efforts should focus on reducing interest rate levels, increasing revenue and reducing spending, reducing taxes, fees, and charges, and ensuring credit funds for production and business, he said while also underscoring the need for a sufficient energy supply.

The Government will soon hold another meeting to discuss emerging issues in global trade conflicts.

Supervision will be strengthened for public investment disbursement, especially for key national projects.

PM Chính also urged the full allocation plan for investment projects using the State budget. In case this plan is not completed in time, the Government will distribute unallocated funding to projects that need to accelerate progress.

Other areas of focus include promoting large-scale FDI and high-tech projects, especially in industries such as processing and manufacturing, electronics, semiconductors and hydrogen.

The PM also ordered proactive planning to ensure balanced and sustainable trade with the US, China and other key partners, in addition to the effective implementation of the 17 approved free trade agreements (FTAs).

Việt Nam will also continue the negotiations for new FTAs to break into new and potential markets, apart from taking measures to stimulate consumer demands, boost e-commerce, develop the tourism sector, and promote cashless payments and local-made products.

In line with the Politburo’s Resolution No 57 on national digital transformation, State departments must review the related policies and mechanisms to promote breakthroughs in science, technology and innovation.

The goal is to create substantial changes in developing green growth models, knowledge economy, circular economy, sharing economy and emerging industries such as semiconductors and artificial intelligence.

Legal documents promoting private sector growth and international and regional financial centres in Việt Nam are also expected to be developed.

PM Chính also noted that ministries, sectors and localities must address long-delayed projects, especially in real estate, and promptly report to the higher level authorities if needed.

The Government leader also emphasised focusing on social, cultural and environmental issues, disaster prevention, climate change response, national defence and security, anti-corruption, diplomacy and public mobilisation to consolidate the national unity, thereby creating favourable conditions to achieve the set socio-economic growth targets. — VNS