Hanoi (VNA) – Vietnam’s economy has begunto gather steam again since the start of the third quarter of this year, helping consolidateconfidence of businesses and investors, experts have said.

The country’s index of industrial production (IIP) inJuly expanded 3.9% from the previous month and 3.7% against the same periodlast year, statistics show.

In the first seven months of this year, Vietnamenjoyed a trade surplus of more than 16.5 billion USD, and foreign investmentattraction were recovering after a decline for six consecutive months.

Deputy Minister of Planning and Investment Tran QuocPhuong attributed the results to the Government’s efforts in removingobstacles, especially those facing the real estate and corporate bond markets as well as investment projects.

However, he said, fulfilling the yearly growth targetof 6.5% is a hard nut to crack that requires breakthrough mechanisms and policies.

According to the official, the Ministry of Planningand Investment has proposed the Government to assign other ministries, agencies,and localities to review and perfect relevant mechanisms, policies and legalregulations to untangle the knots in production and business.

The ministry also stressed the need to furtherstreamline administrative procedures, carry forward the role of growth driverslike consumption, investment and export, maintain macro-economic stability and control inflation, and ensure major economic balances, he said.

Associate Prof. Dr. Tran Dinh Thien, former Directorof the Vietnam Institute of Economics, also pointed out that since late 2022,the number of businesses that declared bankruptcy and temporarily suspendedoperation, especially small- and medium-sized ones, has been on the rise.

The workforce index in major industrial hubs likeBinh Duong, Dong Nai, Thai Nguyen, and Bac Ninh is falling, posing challenges tothe domestic industrial sector, he said, adding that foreign investmentattraction has yet to fully recover after the COVID-19 pandemic.   

Given such obstacles, it is a must to re-identifythe economic structure and employ special solutions matching the current situation,Thien said.

“To achieve the yearly target, it requires greatefforts and strong determination of all agencies,” he stressed.

Sharing Thien’s views, Associate Prof. Dr. NguyenDuc Trung, Rector of Ho Chi Minh City University of Banking, suggestedunlocking resources and promoting private investment in important spheres.

The national economy grew only 3.72% in the firsttwo quarters of this year, lower than the scenario set by the Government, while revenue to the State coffer dropped 7.8% in the first seven months./.