Deputy Prime Minister Nguyen Van Thang has signed Directive No. 26 issued by the Prime Minister on the formulation of Vietnam's 2027 socio-economic development plan and state budget estimates.

The directive states that 2027 will be a pivotal year for strengthening the foundations needed to achieve the country's double-digit growth ambitions. Global conditions are expected to present more challenges than opportunities, while Vietnam must simultaneously address internal economic issues, implement breakthrough initiatives and adapt effectively to a changing global landscape.

The Prime Minister requested that the 2027 plan be developed on the basis of a realistic assessment of the implementation of the 2026 plan, along with forecasts of domestic and international developments. The plan should incorporate proactive, synchronized and targeted solutions aimed at achieving rapid, sustainable and inclusive growth that benefits both citizens and businesses.

The directive also stresses the need for forward-looking and innovative thinking to capitalize on opportunities, overcome challenges and address existing shortcomings.

Double-digit growth linked to macroeconomic stability

The development strategy should focus on achieving double-digit growth while maintaining macroeconomic stability, controlling inflation and safeguarding major economic balances. It also calls for the establishment of a new growth model driven primarily by science and technology, innovation and digital transformation, while improving productivity and national competitiveness and advancing strategic breakthroughs.

Sectoral and industry-specific targets must be drawn from the national statistical indicator system, ensuring that data can be collected, monitored continuously and evaluated regularly. Specialized and overly complex indicators intended mainly for research purposes should not be proposed, and all indicators must remain comparable with historical data.

The targets must also be closely linked to the implementation of key tasks and solutions and align with Vietnam's 2026-2030 five-year socio-economic development framework.

Regarding the 2027 state budget, the directive specifies that revenue estimates must be prepared in accordance with current policies and regulations, ensuring comprehensive, accurate and timely collection of all state revenues.

Reduce unnecessary conferences and business trips

The government aims for nationwide domestic revenue estimates in 2027 to rise by an average of 13-15% compared with estimated 2026 performance. Growth targets for individual localities should correspond to economic expansion and locally generated revenue sources.

Revenue from import-export activities is projected to increase by an average of 5-7% compared with estimated 2026 results.

State budget expenditure estimates for 2027 must be based on solid political, legal and practical foundations, with clear calculations, implementation roadmaps and expected outcomes to ensure feasibility and efficiency. Budget planning must also be closely aligned with sectoral and industry development strategies.

The Prime Minister called for strict savings measures and reductions in unnecessary expenditures, particularly spending on conferences, seminars and overseas business trips. Direct state budget support should also be gradually reduced for public service units with strong revenue-generating capacity.

The government leader instructed agencies to continue restructuring state budget expenditures by reducing the share of recurrent spending and increasing investment in development projects. Priority should be given to breakthrough objectives, major political tasks approved by the Party and the State, national target programs, social welfare policies and national defense and security needs.

In addition, the Prime Minister emphasized the need to reserve resources consistent with the state's fiscal capacity to support adjustments to public sector salaries, pensions funded by the state budget, preferential policies for people with meritorious service and social assistance programs.

For new policies, programs, projects and initiatives currently under consideration by competent authorities, agencies must strictly adhere to the principle that they should only be issued after careful review of their necessity, effectiveness and efficiency. Such initiatives must avoid duplication, have clear implementation roadmaps, specify expected outcomes and remain within budget resources that have already been balanced and approved by financial authorities.

Vietnam increased the statutory base salary from VND 1.8 million (USD 69) to VND 2.34 million (USD 90) per month on July 1, 2024. Beginning July 1, 2026, the base salary will rise further to VND 2.53 million (USD 97) per month, resulting in corresponding adjustments to pensions and social benefits.

Tran Thuong