Vietnam Finance Minister: Key Results & Future Plans for Economic Growth & Stability

Vietnam’s financial sector has demonstrated resilience and achieved key objectives over the past five years, despite a backdrop of global and domestic economic uncertainties. According to recent statements from Minister of Finance Nguyen Van Thang, proactive management and coordinated efforts across government branches have resulted in stable macroeconomic conditions and significant progress in socio-economic development.

Strengthening Economic Foundations

The Vietnamese government has prioritized maintaining economic stability while fostering growth. The average state budget deficit for the period 2021-2025 remained between 3.1% and 3.2% of GDP, and public debt was managed at approximately 35-36% of GDP. These figures have contributed to strengthening the country’s credit rating.

Did You Know? Between 2021 and 2025, the Ministry of Finance submitted 32 laws and resolutions, 168 decrees, and 436 circulars to the National Assembly to streamline regulations and promote economic development.

Legal and Regulatory Improvements

Significant improvements have been made to the legal framework governing public finances and the state budget. From 2021 to 2025, the Ministry of Finance proposed 32 laws and resolutions, alongside 168 decrees and 436 circulars, aimed at removing obstacles, decentralizing power, and simplifying administrative procedures.

Revenue Management and Fiscal Support

The government has focused on strengthening revenue management and ensuring the sustainability of the state budget. The average budget mobilization rate reached approximately 18.3% of GDP over the last five years. Tax exemptions, reductions, and extensions totaling approximately 1.1 trillion VND were implemented to support individuals and businesses impacted by the pandemic and to stimulate economic recovery.

Expert Insight: The Vietnamese government’s proactive fiscal policies, including tax relief measures, demonstrate a commitment to supporting both economic recovery and long-term sustainable growth. This approach balances immediate needs with the importance of maintaining fiscal responsibility.

Investment and Capital Markets

Investment in development projects has increased, representing around 32% of the state budget’s total expenditure. This targeted allocation supports strategic infrastructure projects with significant economic benefits. The business and investment climate continues to improve, with over one million active enterprises as of 2024, a rise of more than 46% since 2020. Total social investment is projected to reach approximately 32.2% of GDP for the 2021-2025 period, with the private and state sectors accounting for over 65% of this amount.

Vietnam remains an attractive destination for foreign direct investment (FDI), ranking among the top 15 developing countries globally. FDI accounts for roughly 16% of total social investment. The country’s capital markets are also developing, with the bond market reaching approximately 3,930 trillion VND (30.7% of GDP) and the stock market capitalization nearing 10,000 trillion VND (77.9% of GDP) by the end of 2025. The Vietnamese stock market is expected to transition from frontier to emerging market status by 2025.

Future Outlook

Looking ahead, the Ministry of Finance will prioritize a proactive, ambitious, and targeted budgetary policy, coordinating closely with monetary policy to maintain macroeconomic stability and pursue rapid, sustainable growth. Efforts will focus on improving budget management efficiency, ensuring accurate and timely revenue collection, and developing sustainable revenue sources. The government aims to maintain the average budget mobilization rate around 18% of GDP through 2030 and increase development investment expenditure to approximately 40% of total budget expenditure.

Further improvements to the institutional and legal framework for public finances are planned, alongside accelerated digital transformation and administrative reforms. The financial sector will also focus on enhancing the efficiency of the public economy, promoting the development of the private sector, and expanding capital markets. Attracting selective FDI, prioritizing large-scale, high-tech, and environmentally friendly projects, will remain a key objective.

Frequently Asked Questions

What was the average state budget deficit between 2021-2025?

The average state budget deficit for the period 2021-2025 was between 3.1 and 3.2% of GDP.

How many laws and resolutions did the Ministry of Finance submit to the National Assembly between 2021 and 2025?

The Ministry of Finance submitted 32 laws and resolutions to the National Assembly between 2021 and 2025.

What percentage of total social investment does FDI represent in Vietnam?

Foreign direct investment (FDI) represents approximately 16% of total social investment in Vietnam.

As Vietnam continues to navigate a complex global economic landscape, how might its commitment to fiscal responsibility and strategic investment shape its future economic trajectory?