Fiscal-monetary synergy boosts growth

Vietnam's economy has reached the halfway point of the year, with GDP growth in the first six months reaching 7.52%. This is a fairly high growth rate, but the pressure to achieve the annual growth target of over 8% is not small.

Therefore, the responsibility of promoting growth is partly placed on the shoulders of two fiscal and monetary policies, which are currently being managed in a flexible, open and effective manner.

That is probably one of the grounds for the Prime Minister to recently issue Official Dispatch No. 104/CD-TTg on enhancing the effectiveness of monetary and fiscal policy management. Accordingly, the Prime Minister directed that monetary policy must be implemented proactively, flexibly, promptly, effectively, and appropriately; and fiscal policy must be expanded reasonably, with focus and key points. Both policies must be closely coordinated, harmoniously, and effectively with each other and with other macroeconomic policies to promote economic growth.

It should be reiterated that, over the years, the two fiscal and monetary policies have been operated in a harmonious and rhythmic manner, sometimes tightening, sometimes loosening, very flexibly and effectively.

Thereby, it has contributed significantly to the economy achieving positive results and positive growth, even during the difficult period due to the Covid-19 pandemic.

This year, as the Government is determined to achieve a growth target of over 8%, the synergy of these two policies is needed more than ever. Currently, both monetary and fiscal policies are being implemented in a looser direction to boost growth.

The figures were recently announced. As of June 30, economic credit reached over VND17.2 million billion, up 9.9% compared to the end of 2024 and up 19.4% compared to the same period in 2024. This is the highest growth rate since 2022.

Meanwhile, fiscal policy is also being strongly promoted, even playing the role of a growth pillar. Positive economic growth in recent years and high budget revenue are some of the fundamental factors for Vietnam to have more resources for expansionary fiscal policy.

In the first 6 months of this year alone, budget revenue reached 1,302,100 billion VND, equal to 66.2% of the estimate, up 25.4% over the same period in 2024. High revenue, so expenditure also increased when in 6 months, total budget expenditure was about 1,075,200 billion VND, equal to 42.2% of the estimate, up 35.1% over the same period in 2024.

Along with increased spending, many policies on tax, fee, charge, land rent exemption, reduction, etc. have also been implemented, creating favorable conditions for people and businesses, thereby promoting production and business, stimulating consumption, and creating momentum for economic growth.

These results are positive, but to achieve a growth rate of 8.4-8.5% in the last 6 months of the year and to achieve a growth rate of over 8% for the whole year, both fiscal and monetary policies need to be implemented more effectively. In particular, fiscal policy plays an important role. This is clearly stated in the Prime Minister 's dispatch.

Not only continuing to implement measures to exempt, defer, and reduce taxes, fees, etc., but also needing to strengthen budget collection management, striving for the state budget collection in 2025 to increase by at least 20% compared to the estimate; thoroughly saving for regularity, fully and promptly arranging funding sources to pay for policies and regimes according to Decree No. 178/2024/ND-CP, Decree No. 67/2025/ND-CP of the Government and tasks serving the arrangement of administrative units, implementing 2-level local government, etc.

To promote growth, it is also necessary to build an effective mechanism to selectively attract foreign investment, focusing on promoting and attracting large-scale, high-tech, environmentally clean foreign investment projects... And certainly, it is necessary to accelerate the disbursement of public investment capital, aiming to reach 100% by December 31, 2025. This is one of the important fiscal policies, playing a key role in driving the economy's growth this year, while creating a foundation for growth and development in the following period.

Never before have public investment resources been allocated as large as this year, when the total resources could reach nearly 1 quadrillion VND. Not to mention, there is a huge resource, up to 235 billion USD of 2,887 backlogged and prolonged projects. When this resource is released, the economy will have more momentum to accelerate development.

The Prime Minister has also clearly directed that it is necessary to urgently handle and resolve backlogged and long-standing projects within its authority to free up resources for development and combat waste; and strive to mobilize total social investment capital to grow by 11-12% compared to 2024. Therefore, the role of fiscal policy in promoting growth in 2025 is very important.

The current context requires a closer and more harmonious coordination of fiscal and monetary policies to help the economy achieve the growth target of over 8% this year. Of course, along with high growth, we cannot forget the important task of “macroeconomic stability”. That is also the reason why it is necessary to operate these two policies flexibly and effectively.

Source: https://baodautu.vn/hop-luc-tai-khoa---tien-te-thuc-tang-truong-d327955.html