Finance industry: Consolidating the macro foundation, creating room for rapid and sustainable growth

Minister, how do you assess the results of implementing state financial and budgetary tasks as well as the completion of institutions, mechanisms, policies, and laws in the fields of finance, investment, and state budget in the past period?

- Minister of Finance Nguyen Van Thang: The financial and budgetary tasks of the state in the past 5 years have been implemented in the context of the world and domestic situation having many unpredictable fluctuations, posing many difficulties and challenges.

However, thanks to the efforts of the entire political system under the leadership of the Party, National Assembly, and Government; the synchronous involvement of ministries, branches, and localities; along with the proactive, flexible, timely and effective direction and administration of the Finance sector, the work of financial and state budget management has achieved many outstanding and comprehensive results, completing all key targets for the period 2021-2025. State financial and budget resources are managed, mobilized and used more and more effectively, making an important contribution to the implementation of socio-economic development goals.

Specifically:

First, the Finance sector has promptly advised and implemented plans, mechanisms, policies and solutions for socio-economic development; promoted growth associated with maintaining macroeconomic stability. The average state budget deficit for the period 2021 - 2025 is about 3.1 - 3.2% of GDP; official debt is estimated at about 35 - 36% of GDP, well controlled, contributing to consolidating the national credit rating.

Second, the legal system on finance - state budget is focused on completion. In the period 2021 - 2025, the Ministry of Finance submitted and promulgated 32 laws and resolutions of the National Assembly and the National Assembly Standing Committee; 168 decrees and promulgated 436 circulars under its authority, focusing on removing bottlenecks, promoting decentralization and delegation of power, reducing administrative procedures, meeting development requirements in the new period.

Third, revenue management has been strengthened, the state budget revenue structure has been focused on sustainability; the average state budget mobilization rate for 5 years reached about 18.3% of GDP, while still implementing exemptions, reductions, and extensions of taxes and fees of about 1.1 million billion VND to support people and businesses to overcome difficulties and challenges caused by epidemics and restore production and business after the pandemic.

Fourth, the Finance sector has increased revenue and saved about 1.5 million billion VND to supplement resources for development investment, defense, security, science and technology, salary reform, social security, eradicating dilapidated houses and building schools in border areas.

Fifth, the proportion of development investment expenditure of the whole country increased to about 32% of the total state budget expenditure, which is arranged with focus and key points, ensuring resources for strategic infrastructure projects with great spillover effects.

Sixth, the investment and business environment continues to improve, strongly encouraging economic sectors to develop. To date, the whole country has over 1 million operating businesses, an increase of over 46% compared to 2020; total social investment capital in the period 2021-2025 reached about 32.2% of GDP, of which the private sector and state-owned enterprises accounted for over 65%.

Seventh, Vietnam continues to be a bright spot in attracting foreign investment, belonging to the group of 15 developing countries attracting the largest FDI in the world; FDI capital contributes about 16% of total social investment capital.

Eighth, capital markets develop in a safe, sustainable and integrated direction, gradually becoming an important capital mobilization channel for the economy. By the end of 2025, the bond market size reached about 3.93 million billion VND, equivalent to 30.7% of GDP; the market capitalization of the stock market reached nearly 10 million billion VND, equivalent to 77.9% of GDP. In 2025, the Vietnamese stock market fully met the criteria and was upgraded from a frontier market to a emerging market.

And finally, the Finance sector actively promotes regional economic development, industries, fields and new economic models; participates in building international financial centers, free trade zones; and effectively coordinates in social security work, ensuring economic growth associated with progress and social justice.

In the coming time, what tasks and solutions will the Finance sector focus on to stabilize the macroeconomy and promote rapid and sustainable growth?

- Minister of Finance Nguyen Van Thang: In the coming time, before the new requirements and tasks set out, the Finance sector will focus on synchronously implementing key tasks and solutions.

In which, first of all, it is to implement proactive fiscal policy, reasonable expansion, with focus and key points; consolidate the leading role of the central budget, and at the same time promote the proactiveness and creativity of ministries, branches, and localities. Fiscal policy is closely coordinated with monetary policy to maintain macroeconomic stability, contribute to double-digit growth, and transform the development model.

In revenue and expenditure management, focus on improving the effectiveness and efficiency of state budget revenue and expenditure management; implementing correct and sufficient revenue collection in a timely manner, associated with nurturing and developing sustainable revenue sources. We strive to ensure the average state budget mobilization rate in the period 2026 - 2030 is about 18% of GDP; increase development investment expenditure to about 40% of total state budget expenditure; strictly manage budget deficit and public debt in accordance with the borrowing and debt repayment capacity of the economy, contributing to improving the national credit rating.

At the same time, continue to improve institutions and legal systems on state finance and budget; promote digital transformation, reform administrative procedures, and improve management and supervision capacity and efficiency.

Minister, please tell us more about solutions for the development of economic sectors as well as the development of capital markets and stock markets?

- Minister of Finance Nguyen Van Thang: The Finance sector will focus on improving the operational efficiency of the state economy, truly promoting the leading and pioneering role in key, essential, and strategic sectors and fields.

Along with that is to strongly develop the private economic sector in the spirit of Resolution No. 68-NQ/TW; striving to have about 2 million operating businesses by 2030; technological level, innovation and digital transformation belong to the leading group in ASEAN and Asia.

Develop capital markets and stock markets to become important medium and long-term capital mobilization channels; effectively exploit opportunities from upgrading the stock market; complete the legal corridor for new trends such as digital assets, green transformation, and digital transformation.

For the FDI sector, focus on selectively attracting FDI, prioritizing large-scale, high-tech, and environmentally friendly projects; strengthening links between domestic and FDI enterprises, and participating more deeply in the value chain and global supply chain.

Thank you very much, Minister!