Minister of Finance Nguyen Van Thang.
Accordingly, the Minister emphasized that the finance sector will focus on implementing proactive fiscal policies, expanding them appropriately and strategically; and closely coordinating with monetary policy to maintain macroeconomic stability and promote rapid and sustainable growth.
Reporter: Minister, how do you assess the results of implementing state finance and budget tasks, as well as the improvement of institutions, mechanisms, policies, and laws in the fields of finance, investment, and state budget in the recent period?
Minister Nguyen Van Thang: The tasks of state finance and budget over the past five years have been carried out in the context of many unpredictable changes in the world and domestic situations, posing numerous difficulties and challenges. However, thanks to the efforts of the entire political system under the leadership of the Party, the National Assembly, and the Government; the synchronized involvement of ministries, sectors, and localities; and the proactive, flexible, timely, and effective direction and management of the finance sector, state finance and budget management has achieved many outstanding and comprehensive results, completing all key targets for the 2021-2025 period. State financial and budget resources have been managed, mobilized, and used increasingly effectively, making an important contribution to achieving socio-economic development goals. Specifically:
Firstly, the Finance sector has promptly advised on and implemented plans, mechanisms, policies, and solutions for socio-economic development; promoting growth while maintaining macroeconomic stability. The average state budget deficit for the period 2021–2025 is approximately 3.1–3.2% of GDP; public debt is estimated at around 35–36% of GDP, which is well controlled, contributing to strengthening the national credit rating.
Secondly, the legal system regarding state finance and budget has been comprehensively improved. During the 2021-2025 period, the Ministry of Finance submitted 32 laws and resolutions of the National Assembly and the Standing Committee of the National Assembly for promulgation; 168 decrees; and issued 436 circulars within its authority, focusing on removing bottlenecks, promoting decentralization and delegation of power, reducing administrative procedures, and meeting the development requirements of the new period.
Thirdly, revenue management has been strengthened, and the structure of state budget revenue has been focused on sustainability; the average state budget mobilization rate over the past five years has reached approximately 18.3% of GDP, while still implementing tax and fee exemptions, reductions, and extensions totaling about 1.1 trillion VND to support people and businesses in overcoming difficulties and challenges caused by the pandemic and recovering production and business after the pandemic.
Fourth, the Finance sector has increased revenue and saved approximately 1.5 trillion VND in expenditures to supplement resources for development investment, national defense, security, science and technology, salary reform, social welfare, eliminating dilapidated housing, and building schools in border areas.
Fifth, the proportion of development investment expenditure nationwide increased to approximately 32% of total state budget expenditure, with focused and targeted allocation, ensuring resources for strategic infrastructure projects with significant spillover effects.
Sixth, the investment and business environment continues to improve, strongly encouraging the development of all economic sectors. To date, the country has over 1 million active businesses, an increase of over 46% compared to 2020; total social investment capital for the period 2021–2025 is expected to reach approximately 32.2% of GDP, with the private sector and state-owned enterprises accounting for over 65%.
Secondly, Vietnam continues to be a bright spot in attracting foreign investment, ranking among the top 15 developing countries attracting the most FDI in the world; FDI contributes approximately 16% of total social investment.
Eighth, capital markets will develop in a safe, sustainable, and integrated direction, gradually becoming an important channel for mobilizing capital for the economy. By the end of 2025, the size of the bond market will reach approximately VND 3.93 trillion, equivalent to 30.7% of GDP; the market capitalization of the stock market will reach nearly VND 10 trillion, equivalent to 77.9% of GDP. By 2025, the Vietnamese stock market will have fully met the criteria and been upgraded from a frontier market to an emerging market.
Finally, the financial sector actively promotes regional economic development, new industries, sectors, and economic models; participates in building international financial centers and free trade zones; and effectively coordinates in social welfare, ensuring economic growth is linked to social progress and equity.
Reporter: Minister, what tasks and solutions will the Ministry of Finance focus on in the coming period to stabilize the macroeconomic situation and promote rapid and sustainable growth?
Minister Nguyen Van Thang: In the coming period, in response to new demands and tasks, the finance sector will focus on implementing a comprehensive set of key tasks and solutions, proactively and rationally expanding fiscal policy with a focus on key areas; consolidating the leading role of the central budget, while promoting the initiative and creativity of ministries, sectors, and localities. Close coordination with monetary policy is essential to maintaining macroeconomic stability, contributing to double-digit growth, and transforming the development model.
We will enhance the effectiveness and efficiency of state budget revenue and expenditure management; ensure accurate, complete, and timely revenue collection, while nurturing and developing sustainable revenue sources. We strive to ensure an average state budget mobilization rate of approximately 18% of GDP during the 2026-2030 period; increase development investment spending to approximately 40% of total state budget expenditure; and strictly manage budget deficits and public debt in line with the economy's borrowing and repayment capacity, contributing to improving the national credit rating.
Reporter: Minister, could you elaborate on the major directions for market and business development and investment attraction in the coming period?
Minister Nguyen Van Thang: The finance sector will continue to improve the institutional framework and legal system regarding state finance and budget; accelerate digital transformation, reform administrative procedures, and enhance the capacity and efficiency of management and supervision.
Simultaneously, enhance the operational efficiency of the state-owned economy, truly promoting its leading and pioneering role in key, essential, and strategic sectors and fields. Alongside this, vigorously develop the private sector in accordance with Resolution No. 68-NQ/TW; striving to have approximately 2 million operating businesses in Vietnam by 2030; with technological levels, innovation, and digital transformation ranking among the leading groups in ASEAN and Asia.
Furthermore, the financial sector is developing capital markets, with the stock market becoming an important channel for mobilizing medium and long-term capital; effectively exploiting opportunities from upgrading the stock market; and perfecting the legal framework for new trends such as digital assets, green transformation, and digital transformation.
In particular, attract FDI selectively, prioritizing large-scale, high-tech, and environmentally friendly projects; strengthen linkages between domestic and FDI enterprises, and participate more deeply in global value chains and supply chains.
Reporter: Thank you very much, Minister!
Source: https://vimc.co/dai-hoi-xiv-cua-dang-bo-truong-bo-tai-chinh-chu-dong-chinh-sach-tai-khoa-tao-nen-tang-cho-tang-truong-nhanh-va-ben-vung/
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