According to the Government’s proposal presented by Finance Minister Ngo Van Tuan, the plan would create one comprehensive national target program by integrating four existing programs covering cultural development; education and training; new-style rural development, poverty reduction and development in ethnic minority and mountainous areas; and healthcare, population and development.

 

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Finance Minister Ngo Van Tuan presents the Government’s proposal. Photo: National Assembly

The Government has proposed naming the integrated initiative the National Target Program on Cultural and Social Development, Rural Areas, Ethnic Minorities and Mountainous Regions for 2026-2035.

The program would comprise seven groups of key tasks. Total resources required for implementation during 2026-2030 are estimated at VND808.558 trillion ($30.7 billion), including VND345 trillion ($13.1 billion) from the central government budget.

The Government has asked the National Assembly to authorize it to review and restructure individual funding sources, eliminate overlapping components and routine annual tasks, and aim for a state-budget structure of about 75% public investment capital and 25% recurrent expenditure. The goal is to ensure that state resources are allocated to key priorities while remaining consistent with actual disbursement capacity.

Under the proposal, the Ministry of Agriculture and Environment would serve as the overall coordinating agency and support the Central Steering Committee.

Sectoral ministries would be responsible for objectives, targets, policies, standards, outputs and performance assessments in their respective fields, without acting as an intermediary layer in the allocation, assignment or settlement of funds for localities.

The Ministry of Finance would consolidate resources, allocate, adjust and transfer funding, and compile implementation results.

Local authorities would have the autonomy to select project portfolios and priorities, make detailed allocations, adjust funding and determine implementation methods. They would also bear full responsibility for beneficiaries, prices, volumes, quality, schedules, effectiveness and post-investment operations.

Avoiding a mechanical merger

Presenting a preliminary assessment of the Government’s proposal, Nationalities Council Chairman Lam Van Man said the council’s Standing Committee agreed on the need to integrate the four programs to streamline administrative focal points, address overlaps and accelerate funding allocation and disbursement.

However, he stressed that the integration must properly follow the Politburo’s direction to create a genuinely comprehensive program rather than merely combining administrative structures or placing four separate programs under a common umbrella.

At the same time, the merger must not dilute objectives, benefits or priority levels for individual sectors, geographical areas and beneficiary groups, particularly specific policies for ethnic minority and mountainous communities.

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Nationalities Council Chairman Lam Van Man presents the preliminary assessment. Photo: National Assembly

Regarding the proposed VND808.558 trillion ($30.7 billion) in resources for 2026-2030, the reviewing agency requested a clearer explanation of how the figure was calculated and an assessment of potential savings from streamlining administrative structures.

It also called for a plan to handle VND17.2418 trillion ($654 million) in funding carried over into 2026, of which only about 23% had been disbursed as of July 31.

The Nationalities Council Standing Committee supported reducing administrative expenses and directing more resources toward investment. However, it cautioned against mechanically applying the proposed 75% public investment and 25% recurrent expenditure ratio if doing so would reduce support for livelihoods, production, education, healthcare, culture and specific policies.

For localities where central government transfers account for more than 70% of their budget balance, the council proposed limiting counterpart funding requirements to no more than 10%.

It also called for the highest level of priority to continue being given to disadvantaged and particularly disadvantaged areas, former revolutionary bases, border regions and islands.

On implementation, the council said there should be a single coordinating agency without creating additional intermediary layers. It suggested considering the Ministry of Finance as the main agency responsible for overall coordination, while sectoral ministries would provide professional and technical guidance.

The reviewing agency also supported the principle that “localities decide, localities implement and localities take responsibility,” provided decisions remain within prescribed objectives, beneficiaries, priority principles and available resources, while being tied to data transparency, accountability and measurable outcomes.

Speaking at the meeting, National Assembly Chairman Tran Thanh Man said the integration of the four programs was intended to address fragmentation and overlaps, reduce administrative compliance costs and strengthen decentralization in the management of state-budget funds.

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National Assembly Chairman Tran Thanh Man speaks at the meeting. Photo: National Assembly

According to Man, the previous system involved too many guidance documents issued by different ministries, agencies and local authorities, resulting in cumbersome procedures and slow disbursement.

The proposed solution is to move away from detailed project-by-project allocations toward block funding. The central government would establish output objectives, criteria and budget norms, while local authorities would be empowered to reallocate funding among component projects.

On program management, Man warned against a “mechanical merger” at the central level while multiple separate management boards continued operating underneath. He suggested establishing a single central coordinating office to serve as a “one-stop shop” for local authorities.

He also called for a digital monitoring and data system, with risk-based management and real-time supervision replacing periodic paper-based reporting.

Disbursement results, progress toward targets and output indicators should be continuously updated, allowing funding to be promptly transferred from poorly performing localities to those delivering stronger results.

“Once funding is allocated, every locality must strive to accelerate disbursement. Otherwise, after a quarter or six months, the central government will reallocate funding from underperforming localities to those performing well,” the National Assembly chairman said.

The proposal to integrate the four national target programs into a single program is expected to be submitted to the National Assembly for consideration during the second phase of an extraordinary session.

Tran Thuong