VietNamNet spoke with Duong Tien Dung, Deputy Director of the State Budget Department, Ministry of Finance (MOF), about fiscal measures to achieve the 8 percent growth target in 2025.

Dung said implementing the Party and National Assembly resolutions, fiscal policy is being effectively managed by the Government in a reasonably expansionary manner, with clear focus and priorities to promote economic growth, especially after Covid-19. In 2025, this approach will continue to be maintained to achieve a GDP growth target of 8 percent or higher.

Many legal mechanisms and policies have been reviewed, adjusted, and issued to address bottlenecks, unlock resources, and allocate and use resources efficiently for development. 

In state budget management, for example, Law No 56/2024/QH15, amending and supplementing some provisions of the State Budget Law, has resolved constraints in public procurement, recurrent expenditure, and accelerated public investment disbursement.

The amended State Budget Law, recently passed by the National Assembly, emphasizes greater decentralization and delegation of authority, granting more autonomy to local budgets and budget-using units. It also addresses bottlenecks, prioritizing resources for investment, science and technology development, digital transformation, and implementing key policies.

Some provisions of the new law will take effect from July 1, 2025, including those related to budget decentralization for two-tier government structures and promoting science, technology, innovation, and national digital transformation.

Additionally, MOF has proposed amendments to several decrees and issued circulars to facilitate production and business activities. These adjustments reflect the Government’s commitment to using fiscal policy as a key driver to promote growth, improve the investment environment, and unlock development resources.

How have the policies on tax reduction and deferral been implemented to stimulate domestic investment and consumption, a critical pillar for economic growth?

In 2025, the Government continues to implement policies to reduce and defer taxes, fees, and other budget collection items to ease difficulties for businesses and individuals, control inflation, stabilize the macroeconomy, and promote economic growth.

Several policies proposed by MOF were set up in 2024 and remain effective this year. Most recently, a resolution was submitted to the NA to continue reducing VAT rate as a measure to support businesses in recovering and adapting to production and business challenges, including impacts from US trade policies.

Preliminary estimates indicate that the scale of fiscal support policies currently exceeds VND230 trillion, a significant increase from approximately VND200 trillion in 2024, reflecting a trend of continued fiscal policy expansion on the revenue side to support economic recovery and growth.

In addition to extending VAT reductions until the end of 2026, other policies are being implemented to reduce costs for businesses and individuals. These include reducing environmental protection tax rates on petroleum, registration fees for battery-electric vehicles, import-export tariffs, and deferring payment deadlines for VAT, corporate income tax, personal income tax, special consumption tax for domestically produced or assembled vehicles, and land rent.

Spending on development, investment as priority

How will the 2025 budget expenditure be carried out to support growth and streamline the state apparatus?

In 2025, the Government will regulate fiscal policy in a reasonably expansionary manner with clear focus and priorities to achieve a GDP growth target of 8 percent or higher. Development investment expenditure remains a key priority. The National Assembly has also allowed flexibility in managing the budget deficit, up to 4-4.5 percent of GDP if necessary, higher than the planned 3.8 percent.

State budget expenditure is managed tightly and efficiently within the National Assembly’s approved estimates, with strict savings on recurrent expenditure to increase resources for development investment. 

In 2025, additional expenditures have been reported to implement major Party and State policies to achieve a GDP growth target of 8 percent or higher in 2025 and double-digit growth in 2026-2030, streamline the state apparatus, promote breakthroughs in science, technology, innovation, and national digital transformation, and provide free tuition for public preschool to high school students.

MOF has advised the Government to propose to the National Assembly supplementary budget allocations to cover policies and benefits for officials, public employees, and workers during the reorganization of the state apparatus as stipulated in Government Decrees No178/2024/ND-CP and No67/2025/ND-CP.

It allows the transfer of funds to implement the tuition-free policy, address tasks arising from organizational restructuring, and allocate 3 percent of total 2025 state budget expenditure for science, technology, innovation, and national digital transformation, as required by Resolution No 57-NQ/TW.

Tu Giang