The Prime Minister Calls for Swift Action on State Investment Fund Allocation

Prime Minister Pham Minh Chinh has instructed ministries, agencies, and localities to finalize the allocation of the 2025 state investment plan, setting a firm deadline of March 15. In a clear message to ensure timely action, he warned that any funds remaining unallocated after this date would be redirected to high-priority projects elsewhere. This directive underscores the government's commitment to efficient resource allocation and ensuring that critical initiatives receive the necessary financial support.

Administrator

18 March, 2025

Illustrative image (Source: Internet)

At the Government’s February meeting, PM Chinh emphasized the urgency of expediting fund distribution to accelerate project progress, as reported by Minister-Chairman of the Government Office Tran Van Son at a press conference on March 5.

Son highlighted Vietnam’s socio-economic progress in the initial two months of 2025, marked by macroeconomic stability, controlled inflation, and balanced key economic indicators. Vietnam’s consumer price index (CPI) rose by 3.27% compared to 2024, while state budget revenue reached 25.4% of the annual estimate, a 25.7% increase. The country also witnessed a 12% surge in export-import turnover, resulting in a trade surplus of 1.47 billion USD. Foreign direct investment (FDI) inflows exceeded 6.9 billion USD, reflecting a 35.5% increase, while FDI disbursement neared 3 billion USD, up by 5.4%.

The country’s industrial production thrived, evidenced by a 16.7% jump in the index of industrial production (IIP) in February and a 7% increase over the two-month period.

Minister-Chairman Tran Van Son at the press conference. (Photo: VNA)

Public investment disbursement reached 60.4 trillion VND, on par with the same period in 2024, accounting for 7.32% of the planned allocation. Vietnam also successfully hosted the ASEAN Future Forum 2025 and other prestigious diplomatic events, bolstering its international reputation. Global institutions maintain a positive outlook on Vietnam’s economic trajectory for 2025.

Navigating Challenges: Key Priorities

Despite these achievements, PM Chinh and the Government members acknowledged challenges, including volatile global dynamics impacting Vietnam’s economy. They identified institutional and legal bottlenecks as significant hurdles to economic growth. Accessing capital, resources, and credit remains difficult, coupled with sluggish domestic demand recovery.

The Government leader outlined critical tasks and immediate priorities, underscoring the goal of attaining a minimum 8% GDP growth rate in 2025. He emphasized the need for an active, flexible, timely, and effective monetary policy, complemented by an expansionary fiscal policy.

To achieve these objectives, the PM urged the acceleration of public investment and the refinement of government bond issuance plans to secure additional capital for national key projects. He also advocated for revenue enhancement, expense reduction, and tax cuts.

Ensuring an adequate electricity supply for production, business, and consumption was highlighted as a crucial priority.

Additionally, the Government leader emphasized revitalizing traditional growth drivers, fostering new ones, and promoting science-technology innovation and digital transformation.

Agencies were instructed to expand the “Vietnamese people prioritize using Vietnamese goods” campaign with innovative approaches and develop visa policies tailored for key international partners, including visa exemptions for global billionaires.

Deputy Prime Minister Tran Hong Ha was tasked with engaging Mekong Delta provinces on rice production and exports, infrastructure development, and saline intrusion mitigation.

The PM instructed localities to address long-standing issues while advancing critical initiatives, such as constructing 1 million affordable housing units for individuals under 35 and eliminating substandard housing.