The country will also strive to achieve growth of 7-7.5% next year to boost the economy by up to the 31s1-33rd place on a global ranking, up 1-3 places from now, he told a National Assembly session Monday morning.

Prime Minister Pham Minh Chinh speaks at a National Assembly session on Oct. 21, 2024.

The government plans to prioritize traditional growth drivers, such as investment, exports, and consumption, while fostering new drivers such as green and digital transformation and emerging industries like semiconductors and artificial intelligence.

It will focus on restructuring financial institutions, dealing with non-performing loans, and resolving issues with banks which are under special supervision.

Public investment will be accelerated, particularly for key national projects.

Chinh said that policies will be developed to boost the power sector, especially renewable energy and new energy sources like hydrogen.

"We must not allow any electricity shortage."

Next year the government plans to launch the new Terminal 3 at Tan Son Nhat International Airport in Ho Chi Minh City and Terminal 2 at Noi Bai International Airport in Hanoi.

It will complete the main components at Long Thanh International Airport in the southern province of Dong Nai.

It plans to begin construction of the Lao Cai-Hanoi-Hai Phong railway project and to complete more than 3,000 km of highways, nearly 1,000 km more than this year.

The PM said that this year the government has allocated nearly VND700 trillion ($28.5 billion) on wage increases, including the highest-ever regional minimum wage hike of 6% for workers.

Breakthroughs in infrastructure were evident, particularly in transportation and energy, with 2,021 km of highways completed.

But macroeconomic risks remain, particularly external factors like inflation and exchange rate fluctuations. Credit growth has been modest, and debt repayment pressures are mounting.

Businesses continue to face with challenges, with 163,800 companies shutting down in the first nine months of 2024, a 21.5% increase year-on-year.

Domestic demand has shown signs of slowing, while trade surplus remains heavily reliant on the foreign direct investment sector, he said.

Non-performing loans are on the rise, hitting 4.7% by the end of August.

Vu Hong Thanh, chairman of the National Assembly’s Economic Committee, expressed concerns about high non-performing loans and the slow acquisition of weak banks.

He added that there are signs of recovery in the property market, but difficulties persist. The imbalance in product structure has driven up apartment prices in both primary and secondary markets, making it hard for genuine homebuyers to afford housing.

Land prices in urban and suburban areas of Hanoi have begun rising again, especially in outskirt districts, he said.

Meanwhile, the practice of abandoning bids after winning land auctions has caused disruptions in the housing market, he added.

"Speculation and manipulation in the land market have pushed prices up, making it difficult for ordinary citizens and businesses to afford land."

Thanh was also worried about delays in public investment disbursement, with only 47.3% of the allocated budget disbursed in the first nine months of 2024, compared to 51.4% the previous year.

He urged the government to address the issue.

PM Chinh, in response, affirmed the government’s commitment to achieving a minimum public investment disbursement rate of 95% by year-end and resolving issues related to land clearance.

The government will review policies to prevent corruption and negativity in key national projects, he said, emphasizing improvements in institutional and administrative procedures to create a favorable business environment for companies and citizens, he added.

The economic committee also called for fast and sustainable economic growth, focusing on enhancing internal capacity, maintaining macroeconomic stability, and controlling inflation and exchange rates.

It urged the government to support businesses in regions affected by Typhoon Yagi, enhance analytical and forecasting capabilities, and address land issues to prevent a downturn in the property market.

Chairman Thanh also recommended boosting domestic consumption and diversifying export markets to integrate more deeply into regional and global supply chains.