Prime Minister vows to replace underperforming officials to bolster governance and growth

Prime Minister Lê Minh Hưng said 2026 is the year to raise the quality of grassroots cadres, with a focus on professional qualifications and the ability to perform public duties. He also highlighted that the government faces a major challenge in achieving a two-digit economic growth target.

Macroeconomic performance and early 2026 outlook

The Prime Minister said that from the start of the year to date, Vietnam’s macroeconomy has remained broadly stable, inflation has been controlled, and key economic balances have been preserved. GDP growth in Q1 2026 is estimated at 7.83%, with four provinces recording growth above 10%. The consumer price index (CPI) rose by an average of 3.51%. All three economic sectors posted solid growth, while agricultural production remained stable.

Key government priorities and implementation progress

The government will prioritize allocating resources and accelerating the implementation of Resolution No. 57 of the Politburo. The Prime Minister said construction of Vietnam’s first semiconductor chip manufacturing plant should begin. He also noted that Plan 06 has produced substantive results, bringing more applications and conveniences for people and businesses, including progress in e-commerce, cashless payments, tax management, and electronic invoicing.

Challenges to the two-digit growth target

Despite achievements, the Prime Minister said macroeconomic conditions are affected by adverse external factors, and the two-digit growth target remains a major challenge. He pointed to difficulties in production and business in some sectors, noting that traditional growth drivers are below potential and domestic demand remains weak. Exports continue to rely heavily on the FDI sector, while new growth drivers are still at an early stage and require time to deliver results. He also said the real estate market is slow to recover and carries risks.

He further cited ongoing administrative bottlenecks, noting that some procedures remain cumbersome and online public services are not yet fully convenient for people and businesses. Decentralization and delegation, as well as the capacity of local cadres in some areas, remain limited, and facilities and equipment in some places have not been allocated, utilized, or exploited effectively. Public security and order challenges are also increasing, including drug crimes, high-tech crimes, online fraud, smuggling, and intellectual property violations, alongside food safety concerns.

Remaining months: mobilizing resources and stabilizing the economy

For the remaining months of 2026, the Prime Minister stressed the need to unify thinking, perception, aspiration, and action to achieve the two-digit growth target. The government will promote growth while maintaining macroeconomic stability and mobilize and use all resources efficiently for development.

He emphasized priorities including energy security in both the short and long term, especially ensuring supply of crude oil and gas. The government will also ensure stable and healthy markets, particularly the real estate market, corporate bond market, and currency. In addition, it will strengthen supply-demand and price management for essential goods to prevent hoarding and price gouging.

Investment mobilization and disbursement

The Prime Minister said efficient resource mobilization is a particularly important solution to achieve the two-digit growth target. He noted that investments from state-owned corporations and groups will be increased, private investment will be attracted, and FDI will be encouraged to reinvest in Vietnam using funds, revenue, and profits not remitted home. He also called for accelerating disbursement of public investment in line with project efficiency, and for public investment to lead social investment.

Banking system modernization and credit direction

The government will modernize and restructure the banking system toward sustainability, addressing bad debts, weak banks, and cross-ownership. A plan to continue modernizing banks, address weak credit institutions, and improve enterprises’ access to capital—especially small and medium-sized enterprises—should be completed in Q2 2026. Credit will be directed to production and business in prioritized sectors, while credit in high-risk sectors will be strictly controlled.

Administrative reform and planning alignment

The Prime Minister said the government will focus on completing institutional development and decisively reforming administrative procedures to improve the investment and business environment. In 2026, it will complete the review, adjustment, approval, and implementation of planning within the national planning system, ensuring alignment with the growth target.

He set specific reform targets for administrative procedures and compliance costs, including:

• 50% reduction in the time required to resolve administrative procedures
• 50% reduction in compliance costs
• At least 30% reduction in the number of regulated conditional sectors
• Ensure 100% of business conditions that are not necessary are removed

Raising the quality of grassroots cadres

Finally, the Prime Minister reiterated that 2026 is the year to improve the quality of grassroots cadres, focusing on professional qualifications, the ability to execute public duties, and responsibility and service attitude. He said the government will implement evaluation of civil servants based on job performance, resolutely replace weak officials who shirk responsibility or fail to complete tasks, and reward, promote, and appoint officials who dare to think and take responsibility for the common good.