Prime Minister: No tolerance for overheating growth and macro instability

Prime Minister Le Minh Hung said Vietnam must pursue growth alongside macroeconomic stability and the control of major balances across supply and demand for goods and services, public finances, monetary policy, and international payments. He stressed that Vietnam will not accept “overheating” growth at the expense of macro stability, warning that the medium- and long-term cost to the economy would be very large.

Growth target linked to macro stability

Speaking at a staged discussion on socio-economic development held by the National Assembly on the morning of April 10, the Prime Minister said that during this term Vietnam aims for two-digit growth. He called for unified awareness, thinking, and action across all levels and sectors to strive for the target.

He reiterated that growth must be accompanied by stability and the management of large macro balances, including fiscal and monetary balance and international payments. “If we build a house, the foundation must be solid. If we want to continue developing, we must reinforce the foundation,” he said.

Capital pressure and the need for a clear legal framework

The Prime Minister said Vietnam still relies on traditional drivers—such as exports, construction industries, and services—before fully benefiting from science and technology. He also highlighted that capital pressure will be very large as total social investment by 2030 must reach 40% of GDP, equivalent to 38.5 quadrillion VND.

Of this amount, public investment accounts for only 20% (over 8 quadrillion VND). The remaining 80% must be mobilized from domestic enterprises and foreign direct investment. The Prime Minister said these resources cannot be mobilized without a transparent and clear legal framework.

Coordinated policy response to external impacts

He noted that the Government has been directing ministries and agencies—especially the Ministry of Finance, the Ministry of Industry and Trade, and the State Bank of Vietnam—to coordinate solutions related to the gasoline market and monetary policy to withstand external impacts. The aim is to proactively moderate and reduce strong effects on the domestic market.

2026 as a foundation year

The Prime Minister said 2026 is a pivotal year to lay the foundation for the next growth stage. To achieve growth targets, he emphasized institutional breakthroughs and described them as “a path to create an open corridor for Vietnam’s economy to develop.”

He added that even before the Central Resolution on reforming the growth model is in place, the economy could still achieve higher growth if institutions are aligned, upgraded, and improved in quality. He said this year requires fully resolving a series of institutional issues.

Institutional and administrative reforms

The Prime Minister said ministries and agencies will conduct comprehensive reviews and build a systematized legal framework for the new era. Obstacles in the operation of local governments at two levels will be resolved in Q2.

On project impediments, the Government will submit to the National Assembly amendments to some contents of Resolution 170 to address stalled land projects. The Prime Minister said the operator is determined to finalize the remediation plan in Q2.

“Huge resources are tied up in thousands of projects. If these can be unlocked, they will be an enormous resource contributing to growth,” he said.

He also mentioned renewable energy projects under the Ministry of Industry and Trade that may soon be handed to EVN to help unlock them.

Alongside institutional reform, the Government will continue administrative procedure reform. On April 15, the Ministry of Justice is expected to present a plan to reduce business conditions and procedures to support the business community.

Energy strategy adjustments

On energy, the Prime Minister said Vietnam must adjust its energy strategy in a timely manner given changes in the international and regional landscape. “We must discuss continuing to build some base-load power plants, alongside sustainable renewable energy development,” he said.

He added that Electricity Plan VIII will be adjusted and supplemented to fit reality.