Vietnam sets 2024 GDP growth target at 6-6.5%

With a nearly 90.5% approval rate, Vietnam’s legislative body on Thursday ordered the government to achieve the growth target even though the rate forecast is only 5%.

During discussions Thursday, lawmakers have voiced concerns that the target might be out of reach and proposed instead to keep it at 5-6%.

Chairman of the National Assembly’s Economic Committee Vu Hong Thanh, however, said that the higher target showed the determination of the government in continuing its effort to recover the economy.

The high target is based on current positive economic signals, such as strong recovery in investment, consumption, tourism and exports. Progress in many key infrastructure projects are being sped up, he said.

Lawmakers also set the targets for inflation at 4-4.5% and GDP per capita at $4,700-4,730 next year.

The ratio of manufacturing and processing in GDP has been lowered by 1.3-1.6 percentage points from this year to 24.1-24.2%.

The labor productivity growth target has been reduced by 0.2-0.7 percentage points to 4.8-5.3%.

Thanh explained that global economic challenges would remain next year and shortage of orders were expected.

This will create difficulties for the labor market as workers will have to switch to new sectors to find jobs and will need time to get used to them, he said.

The National Assembly ordered the government to ensure economic stability, keep inflation under control and achieve economic balances.

Interest rates should be lowered, and credit should be more accessible to prioritized sectors, it said.

Key markets such as corporate bonds, property and labor should be stabilized.

Lawmakers also want the issue of ailing banks, along with their bad debts, to be dealt with. They demanded public investment be sped up.