Decision 1119/QD-TTg 2026 amending Decision 368/QD-TTg on the Financial Strategy up to 2030

DECISION

Amending and supplementing a number of articles of the Prime Minister’s Decision No. 368/QD-TTg of March 21, 2022, promulgating the Financial Strategy up to 2030^[1]

THE PRIME MINISTER

Pursuant to the February 18, 2025 Law on Organisation of the Government;

Pursuant to the February 19, 2025 Law on Promulgation of Legal Documents; and the June 25, 2025 Law Amending and Supplementing a Number of Articles of the Law on Promulgation of Legal Documents;

Pursuant to the National Assembly’s Resolution No. 25/2026/QH16 of April 24, 2026, on the 2026-2030 five-year plan on socio-economic development;

Pursuant to the National Assembly’s Resolution No. 26/2026/QH16 of April 24, 2026, on the 2026-2030 five-year plan on national finances and public debt borrowing and repayment;

Pursuant to the National Assembly’s Resolution No. 27/2026/QH16 of April 24, 2026, on the plan on medium-term public investment for the 2026-2030 period;

Pursuant to the Government’s Resolution No. 109/NQ-CP of April 16, 2026, on updating and supplementing the Government’s Action Programme for implementing the Resolution of the 14^th National Party Congress and the Party Central Committee’s Conclusion No. 18-KL/TW of April 2, 2026, on the 2026-2030 five-year socio-economic development plan, and plan on national finances and public debt borrowing and repayment, associated with the objective of achieving the double-digit growth;

At the proposal of the Minister of Finance.

DECIDES:

Article 1. To amend and supplement a number of articles of the Prime Minister’s Decision No. 368/QD-TTg of March 21, 2022, promulgating the Financial Strategy up to 2030.

1. To amend and supplement Points a, b, c and dd, Clause 3, Section I, Article 1 as follows:

“3. Specific objectives and tasks

a/ Ensuring financial and budgetary resources for the realisation of objectives and tasks regarding socio-economic development and security and national defence

- The rate of the state budget revenues will be at least 16% of GDP on average during 2021-2025 and reach 18% of GDP during 2026-2030, of which, the rate of mobilisation from taxes and charges will be 13-14% of GDP and 14-15% of GDP during 2021-2025 and 2026-2030, respectively.

- The proportion of domestic revenues in the total state budget revenues will be 85-86% by 2025, and 87-88% on average during 2026-2030.

b/ Effectively managing state budget expenditures; continuing to restructure state budget expenditures towards sustainability; prioritising spending on development investment and ensuring resources for debt repayment, increasing state budget resources for national reserves, and increasing spending on human development investment and social security assurance

- In the 2021-2025 period, the proportion of recurrent expenditures and the proportion of development investment expenditures in the total state budget expenditures will be 62-63% and about 28% on average, respectively. To strive to increase the proportion of development investment expenditures to about 29% and reduce the proportion of recurrent expenditures to about 60% in reality. During 2026-2030, the proportion of recurrent expenditures and the proportion of development investment expenditures in the total state budget expenditures will be about 40% and 51-52% on average, respectively.

- In the 2021-2030 period, to prioritise allocation of state budget funds to strengthen the national reserves potential in conformity with the state budget’s capacity so as to be ready to quickly and effectively respond to unexpected and urgent circumstances and fulfill the tasks assigned by the Government and the Prime Minister.

c/ Gradually reducing the state budget deficit; strictly managing public debts, and ensuring public debt safety and national financial security

- To strive to increase revenues, save spending, and reduce the state budget deficit in order to reach the budget deficit target of around 3.7% of GDP on average as stated in the 2021-2025 five-year plan on national finances and public debt borrowing and repayment and of 5% of GDP by 2030 (of which central budget deficit will be about 4.4% of GDP, and local budget deficit, 0.6% of GDP on average). In case of occurrence of great fluctuations or risks, the Ministry of Finance shall promptly report thereon to the Government for submission to the National Assembly for consideration and decision.

In the 2021-2025 period, the annual public debt ceiling will not exceed 60% of GDP, government debt ceiling, 50% of GDP, and national foreign debt ceiling, 50% of GDP. By 2030, public debts will not exceed 60% of GDP, government debts, 50% of GDP, and national foreign debts, 50% of GDP.

dd/ Accelerating the renewal of the financial mechanism applicable to the public non-business sector; restructuring, and improving the operational efficiency of, state-owned enterprises

- To improve the institutions on renewal of the management mechanism and financial mechanism applicable to, and reorganisation of, the system of public non-business units; to finalise the roadmap for calculating prices of public non-business services in a number of basic fields. In the 2021-2025 period, direct spendings from the state budget for public non-business units will drop by an average of 10% compared to the 2016-2020’s figure. In the 2026-2030 period, direct spendings from the state budget for public non-business units will drop by 15% compared to the 2021-2025’s figure. To continue to strongly mobilise social resources in the provision of public services; and streamline the organisational structure, retaining only public service units that serve political tasks and state management work, and provide basic and essential public services.

- By 2025, to complete the restructuring of state enterprises. By 2030, to strive to have 50 state-owned enterprises ranked among the 500 largest enterprises in the Southeast Asia and 1-3 state enterprise(s) on the list of 500 largest enterprises in the world; to build a number of strong, large-scale, technologically advanced, and regionally and internationally competitive economic groups and state corporations that will play a pioneering role in leading domestic enterprises to participate deeply in a number of global production and supply chains, especially in key strategic sectors of the economy; to have all state enterprises implementing modern corporate governance on digital platforms, and all economic groups and state corporations applying OECD governance principles.”

2. To add Clauses 1 and 2 to Section III, Article 1, on solutions to achieve the average annual GDP growth rate of 10% or higher for the 2026-2030 period, as follows:

“III. SOLUTIONS FOR IMPLEMENTING THE FINANCIAL STRATEGY TO 2030

1. Improving the development institutions; removing barriers and bottlenecks to unlock productive capacity and all available resources; carrying out a revolution in improving the investment and business environment.

- To build and improve appropriate institutions and laws to establish a new growth model, restructure the economy, promote industrialisation and modernisation, with science, technology, innovation and digital transformation as the main driving forces. To improve the effectiveness of law enforcement to meet development requirements.

- To expeditiously and fundamentally remove barriers and bottlenecks regarding institutions, mechanisms and policies. To focus on reviewing, amending and improving the legal system related to the development of the digital economy (especially fintech, digital assets, artificial intelligence, e-commerce, new technological sectors, etc.), business investment, etc., contributing to removing difficulties and promoting production and business. To accelerate administrative procedure reform; to standardise and digitalise all procedure handling processes in the digital environment, ensuring interconnection and data sharing among agencies; to minimise the time and costs of compliance for citizens and enterprises. To strive to place Vietnam’s investment environment among the top 3 leading countries in ASEAN and the top 30 countries in the world by 2028.

- To study and propose specific mechanisms to handle public assets being abundant houses and land (when necessary), in order to prevent damage, deterioration and waste.

- To effectively develop the state economy to ensure that it truly plays a leading role in ensuring macroeconomic stability, maintaining major balances, making strategic orientations, and leading the economy. To implement the Government’s Resolution No. 29/NQ-CP of February 24, 2026, on the Government’s Action Programme to implement the Political Bureau’s Resolution No. 79-NQ/TW of January 6, 2026, on state economy development. To reform the state economy, focusing on the governance of state-owned enterprises according to international standards, enhancing the efficiency and leading role of state-owned enterprises in a number of important sectors; to continue to step up the equitisation and divestment of state capital at enterprises, ensuring efficiency and preventing losses and waste.

- To strongly develop the private economy; to implement in a synchronous, actual and effective manner the policies set forth in the National Assembly’s Resolution No. 198/2025/QH15 of May 17, 2025, on a number of special mechanisms and policies to develop the private economy; the Government’s Resolution No. 138/NQ-CP of May 16, 2025, on the Government’s Action Plan to implement the Political Bureau’s Resolution No. 68-NQ/TW of May 4, 2025, on private economy development; the Government’s Resolution No. 139/NQ-CP of May 17, 2025, promulgating the Government’s Plan to implement the National Assembly’s Resolution No. 198/2025/QH15 of May 17, 2025, on a number of special mechanisms and policies for the development of the private economy; and resolutions and action programmes on the development of the private economy and support for small- and medium-sized enterprises; focusing on promoting tasks and solutions to improve access to financial and credit resources for the private economy.

- To actively support and create a favourable environment for the cooperative economy, collective economy, foreign-invested economy, and other economic sectors.

To improve mechanisms and policies to support and attract resources, apply science and technology; to develop the circular economy, green economy and organic agriculture; to adapt to climate change; to carry out digital transformation; and to expand markets for the collective and cooperative economies.

To formulate and implement the action programme to implement the Resolution on development of the foreign-invested economy. To selectively attract foreign-invested projects; to innovate policies to attract foreign direct investment towards shifting from focusing on tax incentives to other incentive policies and applying outcome-based incentives; to attach importance to promoting technology transfer and connection between the foreign direct investment sector and the domestic sector; and to effectively carry out offshore investment.

- To expeditiously complete, promulgate and enforce the legal system on planning, taking planning as the main tool to effectively mobilise and allocate resources according to market signals. To develop and operate the national and local investment single windows on the basis of digitalising the whole investment procedures and providing end-to-end online public services.

- To review and expeditiously complete the legal framework, and develop new, breakthrough and superior mechanisms and policies to mobilise and effectively use resources for the development of new economic models; to develop dynamic regions, growth poles, economic corridors, special economic zones, special technology zones, free trade zones, the International Financial Centre, the National Data Centre, high-speed railways, urban railways in Hanoi and Ho Chi Minh City, nuclear power, solar power, offshore wind power, etc.

2. Ensuring the foundations for the double-digit growth for the 2026-2030 period and maintaining rapid and sustainable growth until 2045

- To closely, synchronously, uniformly, effectively and flexibly coordinate the fiscal policy, monetary policy and other macroeconomic policies to achieve the double-digit growth objective, associated with controlling inflation and maintaining macroeconomic stability; to proactively and effectively respond to external developments, resolutely preventing economic crises in all circumstances; to bring into the fullest play domestic resources, and stay closely aligned with the double-digit growth objective.

- To formulate a rational and focused expansionary fiscal policy to strongly support the double-digit growth objective in the coming period. To build a modern and transparent tax system that concurrently promotes growth and ensures revenues for the state budget. To effectively manage and use the after-tax profits of state-owned enterprises so as to achieve the goal of state economic development while minimising the impact on state budget revenues.

Regarding special financial and budgetary policies applicable to localities, to focus on tapping new revenue sources; to refrain from issuing special mechanisms, policies and regulations on tax exemption or reduction, or incentives beyond those prescribed by tax laws and other relevant laws on state budget revenues. To refrain from issuing regulations on the decentralisation of state budget revenue sources and retention of central budget revenue sources that are different from those prescribed in the Law on the State Budget and the Political Bureau’s Conclusion No. 93-KL/TW (except cases of compliance with competent authorities’ policies).

- To manage and operate the state budget effectively and efficiently, ensuring the leading role of the central budget, improving the quality of revenue sources, expanding revenue bases, and increasing the sustainability of the national financial system. To increase revenues, strengthen the management to fight revenue loss, transfer pricing and trade fraud. To strictly implement expenditure-saving measures to ensure resources for promoting economic growth drivers, prioritising the allocation of resources for development investment, important tasks related to security, national defence, social welfare, and the implementation of the Political Bureau’s strategic resolutions and the Party and State’s policies.

To allocate state budget expenditures for the effective implementation of national target programmes, ensuring feasibility and avoiding overlaps among national target programmes and between national target programmes with other programmes, projects, policies, regulations and expenditure tasks, in conformity with implementation progress, disbursement capacity, and the capacity to balance the state budget; to promote decentralisation and delegation of power so as to enhance the proactivity and flexibility of agencies and units in effectively achieving the objectives and tasks of each programme.

To make the fullest use of existing office buildings; to minimise the construction of new headquarters and administrative centres in provinces and cities; ministries, agencies, and localities shall be responsible for their decisions, ensuring the efficient use of state budget funds, preventing any impact on other important objectives and combating waste and corruption.

- To formulate the annual state budget deficit at a level within the objective set for the 2026-2030 period and in line with the needs and disbursement progress of development investment tasks; to conduct annual and mid-term assessments and promptly propose adjustments to the objective in the event of major fluctuations, ensuring feasibility and conformity with economic growth objectives. To implement contingency measures to ensure national financial security and safety within the state budget balancing capacity.

- To effectively implement the Law on Management of Public Debts, strengthen public debt risk management, enhance transparency in the mobilisation, use and reporting of public debt information, and strive for Vietnam to soon attain an investment-grade credit rating. To proactively and flexibly manage borrowing instruments, forms, maturities, timing, and volumes in a year, in association with treasury management, contributing to reducing costs and pressure on state budget mobilisation, meeting mobilisation and contingency needs under unfavourable market conditions, ensuring public debt safety and liquidity of the government bond market.

- To promptly implement solutions to manage and regulate production to ensure supply and demand stabalisation, to closely monitor and manage prices of commodity items, especially essential ones; and to proactively administer the prices of State-regulated goods in accordance with an appropriate roadmap so as to limit increases in inflation expectations.

- To improve statistical capacity and standardise the system of statistical indicators and data. To improve the effectiveness of analysing and forecasting domestic and international situations.

- To implement solutions to improve the national credit rating; to issue specific and superior mechanisms and policies to bring into play the effectiveness of the International Financial Centre and free trade zones in attracting indirect investment flows and international investment funds; to develop the carbon credit market and modern financial products and services in conformity with international practices; to adjust the bond issuance guarantee limit of social policy banks. To raise the foreign holding caps in sectors that do not affect national security.

- To improve the effectiveness of implementing trade agreements, free trade agreements, commitments, and cooperation agreements with international financial organisations and forums, and with the state financial management agencies of partner countries. To promote exports into new markets, especially in countries that have recently upgraded to strategic and comprehensive strategic partnerships with Vietnam. To strengthen the fight against fraudulent origin of goods to safeguard the reputation and position of Vietnamese goods in the international market.

- To take advantage of resources from remittances and investments from overseas Vietnamese, and from financial cooperation in order to connect the intellectual and financial capital of the overseas Vietnamese communities for national development.

- To mobilise to the utmost and effectively use international resources and preferential mechanisms to serve green transition and reduce greenhouse gas emissions, aiming for target of net-zero emissions by 2050.”

3. To amend the ordinal numbers of the solutions in the Financial Strategy through 2030 as follows:

“3. Completing policies on mobilisation of national financial resources, improving the effect and effectiveness of state budget revenue management

4. Improving the efficiency of allocation, management and use of financial resources in association with promoting the process of economic restructuring and sustainable development

5. Closely and effectively managing the state budget deficit and public debts; improving fiscal space, contributing to improving the resilience of the national financial system

6. Renewing the financial mechanism for the public non-business sector

7. Stepping up the restructuring and raising the operational efficiency of state-owned enterprises; renewing the management of state capital invested in enterprises

8. Developing the financial market and financial services in a synchronous, modern, transparent and sustainable manner

9. Consistently practicing price management and administration according to the market mechanism under the State’s regulation

10. Enhancing the effectiveness of financial cooperation and proactively carrying out international financial integration

11. Strengthening the capacity and effectiveness of financial management and supervision; stepping up inspection and examination; practicing thrift, fighting waste

12. Promoting the application of information technology, establishing digital financial platforms; carrying out administrative reform, and improving the effectiveness of state management

13. Improving the quality of human resources and consolidating the finance sector’s apparatus to be modern, streamlined, efficient and effective”.

4. To amend and supplement Point dd, Clause 1, Article 2 as follows:

“Article 2. Responsibilities for organisation and implementation of the Strategy

1. The Ministry of Finance shall:

dd/ Assume the prime responsibility for, and coordinate with related ministries and sectors in, balancing and allocating annual state budget funds in accordance with the Law on the State Budget and relevant legal documents so as to implement the Strategy.”

Article 2. This Decision takes effect on the date of its signing.

Article 3. Ministers, heads of ministerial-level agencies, and Chairpersons of provincial-level People’s Committees shall implement this Decision

For the Prime Minister
Deputy Prime Minister
NGUYEN VAN THANG