Disbursement of 100% public investment capital
During the question-and-answer session with Minister of Finance Nguyen Van Thang on June 19, many issues related to the 8% economic growth target were raised.
Delegate Tran Kim Yen (HCMC delegation) mentioned the world context of unpredictable fluctuations, especially new tariff policies as well as geopolitical instability. International organizations have lowered their global growth forecasts from 0.5% to 1%.
Vietnam aims for a growth rate of 8% or more - this is a huge challenge, requiring high determination and new thinking. One of the solutions is to boost public investment, disbursement reaching 100%. However, in recent times, despite great efforts, the rate of public investment disbursement is still very low, people complain that they have money but cannot use it.
Regarding this issue, Minister of Finance Nguyen Van Thang said that in the past 5 months, the Government has made efforts to accelerate the disbursement of public investment capital. And the results are not low, compared to the same period last year, the results are higher. Accordingly, the disbursed capital reached 200,000 billion VND, the disbursement rate was more than 24.1% of the plan, higher than the same period in 2024 (reaching approximately 22%). All key projects have met or exceeded the schedule.
"Currently, we set a target of disbursing 100% of public investment capital to contribute to economic growth with a growth target of 8%," the Minister emphasized.
He said the Government has identified the reasons for the disbursement of public investment capital such as the multi-stage public investment process, poor project preparation, the lack of legal system, overlap, the supply of raw materials, the implementation capacity of some related parties, especially localities and project management boards, has not met requirements.
The solution proposed by the head of the Ministry of Finance is to focus on removing legal obstacles in public investment in land, construction, and administrative procedures. He said it is also necessary to determine the disbursement results as an important basis when evaluating the level of task completion in 2025 for groups and individuals. In addition, the Government will continue to promote organizations and working groups to remove obstacles, especially key projects.
Sharing the burden with Minister Nguyen Van Thang in the early afternoon of June 19, Deputy Prime Minister Ho Duc Phoc also mentioned bright spots to promote public investment disbursement. He said that the reasons for slow public investment disbursement have been amended by the National Assembly in the State Budget Law, Bidding Law, and Public Investment Law. In the near future, these issues will be fully resolved.
Deputy Prime Minister Ho Duc Phoc (Photo: Pham Thang).
Promote domestic consumption
Domestic consumption is an important driving force for economic growth. It is estimated that consumption contributes about 70% of GDP. However, delegate Trieu The Hung (Hai Duong delegation) is concerned that recently, domestic consumption growth has slowed down due to decreased purchasing power and consumer confidence being affected by trade fraud, counterfeit goods, and poor quality goods.
The Minister of Finance also said that domestic consumption is a very important driving force and needs to be strongly promoted in the last months of the year and in the 2026-2030 period to contribute to the country's economic growth together with other driving forces.
Currently, the consumption growth rate is equivalent to the months before the epidemic, the first 5 months of the year, the consumption growth was 9.7%. Compared to the requirements, it is not achieved, the scenario set out must be 12% or more. To promote consumption, he said that it is necessary to implement and comprehensively combine fiscal and monetary policies,
Regarding solutions, the Minister emphasized the need to strengthen consumer confidence. The fight against counterfeit and poor quality goods is to strengthen consumer confidence.
Second, it is necessary to stabilize the macro economy, control inflation and exchange rates so that people limit hoarding. He emphasized that Vietnam must increase the stability of domestic goods, especially during the holiday and tourist seasons. Cheap prices mean more demand. Strengthen the fight against counterfeit goods, smuggling, and origin fraud, and strictly handle violations of intellectual property rights and food safety and hygiene.
Another solution is to increase income, implement good social security policies, and subsidies so that people can spend with peace of mind... Adjust personal income tax to reduce the burden on people with low and middle incomes.
In addition, the Government needs to promote business models on e-commerce and digital platforms, encourage online spending, and promote low-interest consumer loans.
The Minister also mentioned increasing domestic consumption by stimulating domestic tourism, attracting foreign middle and high-end tourists associated with services in night-time economic zones, developing rural consumer markets, expanding areas far from the center. Improving transport and logistics infrastructure to bring good goods at reasonable prices to remote and rural areas.
Mobilizing resources for growth
Currently, the resources for economic growth in 2025 and the 2026-2030 period are very large while the State budget is limited. The Minister emphasized that to serve the 8% growth target, it is impossible to rely solely on the State budget, especially in the 2026-2030 period.
“We must use all resources, the State budget is the seed capital, from there stimulating capital sources from society, we promote capital mobilization tools from bond issuance, investment funds, from the stock market to ensure, together with other capital sources, sufficient resources to serve the economy,” Minister Nguyen Van Thang proposed a solution.
Recently, the Government has also been very determined to develop transport infrastructure nationwide. For example, since the Government directed the National Assembly to build 3,000 km of highways, the budget has been difficult, but currently the Government is controlling public debt very well.
Projects are balanced in implementation, including projects that specifically balance which projects use the State budget, how much percentage is used, which projects borrow... and balance efficiency, economic-social safety and financial efficiency. The Minister said that for loan projects, where to borrow is also considered, whether to borrow ODA or issue bonds.
Minister of Finance Nguyen Van Thang (Photo: Pham Thang).
He said that increasing resources will be considered carefully and the most important thing is that the project operates effectively. Accordingly, if the loan is effective, the project will still have "food and savings" and contribute to society.
“Delegate, please rest assured about the issue of national debt and state debt. If we want to develop, we must use leverage, increase socialization, increase borrowing from the people, ODA, and borrowing from international financial organizations. If we do not borrow, we will never have high growth, especially when we set a double-digit growth target. The important thing is to create wealth and a budget to both increase the budget and pay off debt,” the Minister emphasized.
Deputy Prime Minister Ho Duc Phoc also stated that in addition to the State budget, to achieve the growth target of 8% or more, it is necessary to mobilize from FDI, PPP, ODA and other investment sources. He said that the Government is trying to control the debt ceiling so that it does not exceed the allowed level. The current public debt ratio is only 34.7%.
Therefore, fiscal and monetary policies must be operated reasonably with a spirit of savings to serve development investment, in turn to increase budget revenue, thereby returning to develop the country's economy and serve social security.
For example, with FDI capital, in the context of strategic competition between economies, Vietnam is shaping its own competitive strategy to attract FDI and develop sustainably. Regarding FDI attraction, Vietnam has shifted its focus from tax incentives to improving the quality of the investment environment and support services, focusing on infrastructure development, ensuring power sources, ensuring clean land funds, high-quality human resources, and shortening administrative procedures.
Vietnam takes advantage of the 17 signed FTAs to expand its market, thereby attracting FDI enterprises, and making efforts to diversify its export markets. It continues to expand strategic partnerships and comprehensive partnerships with leading countries in the world. Vietnam also participates in dialogue initiatives with investors. Through dialogue and multilateral cooperation, it seeks technical assistance and capital while promoting the image of Vietnam as an investor-friendly country.
Enhance investment efficiency, scientific and technological breakthroughs
Delegate Doan Thi Thanh Mai (Hung Yen delegation) raised the issue of investment efficiency. According to the target for the long-term development period, the growth rate is high, but the growth index in 2024 will only reach 7.5%.
Minister Nguyen Van Thang said that according to the forecast, the scenario for the period 2026-2030, the demand for development investment is very large, accounting for 40% of GDP with an annual growth rate of 17-20% - a very high level compared to the current economic growth rate. Currently, investment accounts for only 33% of GDP.
According to him, if a country sets a growth rate of 10% or more, total social investment must be approximately 40% of GDP, while increasing investment efficiency with an ICOR index of 6-7 and striving to reduce it to 4-5.
Some of the main solutions proposed by Minister Nguyen Van Thang include striving to allocate the maximum budget for development investment, having breakthrough and diverse solutions for private enterprises, state-owned enterprises, FDI, capital from the people... budget capital is only "seed" capital to activate other capital. Any project that enterprises can participate in will be prioritized, with the State participating in support (except for projects of national security and defense nature).
In addition, it is necessary to strongly develop capital mobilization channels from the capital market, actively remove difficulties to put backlogged projects nationwide into operation. Currently, large backlogged projects, calculated in terms of total investment, must be over 5 million billion VND.
The Minister also emphasized the promotion of green economy, digital economy, circular economy, increasing labor productivity, not spreading investment but the State focusing on essential projects, and strengthening research and development.
The Politburo issued Resolution 57 on breakthroughs in science, technology, innovation and national digital transformation. The resolution contributed to creating the potential for double-digit growth after many years of the country lacking capital.
The Minister affirmed that the current regulations on institutions to promote science and technology and digital transformation according to Resolution 57 have been promoted and amended. Resources and institutions have been fully opened, there is only one more content as I have reported related to submitting to the Government to issue a Decree on PPP for science, technology and innovation.
Institutions promoting science and technology and digital transformation according to Resolution 57 have been promoted and revised (Photo: IT).
“All the mechanisms related to Resolution 57 have been met. This year's budget has also met them,” he said.
The resources for science, technology and innovation for the 2026-2030 period are huge, accounting for 2% of GDP and can even increase to 5% under the direction of the General Secretary.
Promoting the role of state-owned enterprises
National Assembly deputies also questioned the Minister of Finance about the role of state-owned enterprises in contributing to the 8% GDP growth target.
The Minister said that as the owner of 18 enterprises and State-owned corporations, the Ministry of Finance has recently issued growth targets. First, the Ministry has required enterprises, corporations and general corporations to adjust their business plans to set a minimum growth target of 8% or more.
Second, the Ministry of Finance should promote reforms and strongly amend institutions associated with enterprises. At the same time, enterprises must proactively change their management thinking.
Currently, the State has created the best conditions, only managing the capital contribution, not managing the enterprise. Therefore, enterprises must proactively make the most of resources, especially capital, to do business most effectively, focusing on focused investment.
Third, the State, through its representative, monitors enterprises and provides timely support to overcome difficulties in the process of implementing set goals and plans.
The Minister of Finance said that this agency has requested that when the State has opened up the mechanism, enterprises are almost as proactive as private enterprises. Therefore, setting the target of 8% increase is for enterprises to accompany the Party, the State, and the people.
The businesses that the Ministry of Finance is managing are all doing relatively well. The Minister said that the Ministry of Finance has reviewed and found that it is entirely possible to successfully implement the 8% growth business plan. At the same time, businesses must also cut costs and pay more attention to business plans.
In terms of governance, the Minister said that state-owned enterprises need to have a unified understanding of corporate governance and must improve responsibility and professionalism in performing the function of representing equity capital at enterprises.
In addition, enterprises must also enhance the initiative of the board of directors, board of members, chairman, etc. and need to be transparent and public with information, expand international cooperation and take advantage of scientific and technological advances, innovation, digital transformation in management and administration, associated with innovation in recruitment, training and development of staff.
Source: https://dantri.com.vn/kinh-doanh/phac-hoa-buc-tranh-tong-quat-de-nen-kinh-te-tang-truong-8-20250619170409761.htm
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