Pulling force from fiscal policy

Đặng Chung |

There is no high growth if we only rely on the natural rebound of the economy. To achieve a large goal, the State must create a strong enough pulling force.

At a gas station, technology drivers save tens of thousands of VND each time they refuel. In a production workshop, businesses further reduce input costs. At supermarkets, consumers continue to enjoy a reduced value-added tax rate from 10% to 8% for many groups of goods and services.

These changes seem small, but when combined on a scale of millions of people and hundreds of thousands of businesses, they are extremely large. It also shows the strength when a tax and fee reduction policy is issued, which will directly impact millions of people, helping to maintain market purchasing power, boost businesses and create more momentum for the economy.

That is the value of a fiscal policy that is implemented at the right time.

Vietnam's GDP growth rate in the first 6 months of the year reached 8.18% - the highest level since 2011 - showing that the economy is regaining growth momentum. To realize the growth target of about 10% in 2026 and the following years, fiscal policy must further promote its role as a direct driving force to promote investment, consumption and mobilize resources for development.

This role is clearly shown in public investment. When budget capital is effectively disbursed into strategic infrastructure, it not only creates jobs, increases aggregate demand but also reduces logistics costs, expands development space and promotes private investment.

In parallel with public investment are tax and fee policies. In the first 6 months of 2026, policies on tax and fee exemption, reduction, and extension with a total value of about 89,000 billion VND have contributed to supporting businesses and strengthening market confidence.

Policies such as reducing import taxes on some gasoline and oil items to 0%, reducing 2% VAT at the import stage can be mentioned, all aimed at the common goal of reducing production costs, stimulating consumption and promoting growth.

It is true that immediate tax exemption and reduction policies may reduce part of the budget revenue. But reducing revenue today to nurture tomorrow's revenue. This is a necessary choice. When businesses recover, production expands, and consumption grows, budget revenue will also be sustainable.

The 10% growth target is difficult but feasible if fiscal policy is managed flexibly, closely coordinated with monetary policy. The focus is on accelerating disbursement of public investment, prioritizing strategic infrastructure, supporting the right people, nurturing revenue sources and maintaining budget discipline.

When each budget dollar is used effectively, it will create confidence for businesses to boldly invest, people to feel secure in consuming, and the private sector to be ready to accompany the State on the path of growth.

Đặng Chung
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