As the government pursues ambitious growth targets, officials are seeking to carefully manage regulated prices to avoid destabilizing the broader economy.
Vietnam's Ministry of Finance has recommended that any adjustments to electricity, education and healthcare prices in 2026 be carefully calculated to avoid creating a combined upward impact on overall price levels.
Speaking at the government's regular May meeting on June 3, Finance Minister Ngo Van Tuan presented an update on the country's socio-economic performance.
Avoid sudden price spikes
Finance Minister Ngo Van Tuan delivers a report at the government meeting. Photo: Nhat Bac.
Vietnam's industrial production index in May is estimated to have risen by more than 8.7% year-on-year. For the first five months of the year, the index increased by over 9%, marking the highest growth rate for the period since 2021. Manufacturing and processing activities expanded by nearly 9.5%.
Another bright spot in the economy was consumer spending. Total retail sales of goods and consumer service revenues rose by more than 11% during the first five months of the year, the strongest performance since 2024.
International tourist arrivals reached nearly 11 million, the highest figure on record, representing an increase of almost 15% compared with the same period last year. Agricultural production also maintained solid growth momentum.
However, the Finance Minister warned that El Nino conditions, extreme weather events, heatwaves, drought, salinity intrusion, flooding and persistently high prices for fertilizers and agricultural inputs continue to pose risks.
Regarding inflation and supplies of fuel and electricity, the consumer price index (CPI) increased by 0.3% in May compared with the previous month, the lowest monthly rise recorded over the past three months.
However, CPI was up 5.6% year-on-year in May, while average inflation for the first five months stood at 4.31%.
Domestic fuel prices have been managed at levels lower than those seen in many neighboring markets, helping stabilize prices. Fuel supplies through the end of May were generally sufficient to meet demand.
The Ministry of Finance therefore recommended that any adjustments to electricity prices, education fees and healthcare service charges be carefully assessed to prevent overlapping impacts on inflation.
The ministry also stressed the need to strengthen market and price management to avoid sudden increases during peak consumption periods and the storm season.
In addition, the ministry proposed that the Ministry of Industry and Trade work with major state-owned groups to review and increase production and extraction plans, while preparing electricity supply scenarios to ensure there are no power shortages that could affect manufacturing activity or the country's double-digit growth ambitions.
Registered foreign direct investment reached an estimated USD24 billion, up 33.4% year-on-year, while disbursed FDI totaled USD9.75 billion, an increase of 9.6%.
Several large-scale projects have been approved in provinces including Thai Nguyen, Nghe An and Tay Ninh. The Ministry of Finance urged local authorities to assist investors in accelerating administrative procedures and project implementation.
Social welfare, healthcare and education programs continued to receive attention. National defense and security remained stable, while new environmental protection measures were introduced and disaster preparedness efforts strengthened.
The restructuring and streamlining of government institutions, along with the rollout of the new two-tier local government model, also continued to advance.
Maintaining the goal of double-digit growth
Standing Deputy Prime Minister Pham Gia Tuc and Deputy Prime Ministers Pham Thi Thanh Tra, Ho Quoc Dung, Nguyen Van Thang and Le Tien Chau attend the meeting. Photo: Nhat Bac.
Ngo Van Tuan said the Ministry of Finance will submit a proposal to the government extending tax and land-rent payment deadlines to support businesses and citizens.
The ministry also recommended that ministries and local governments accelerate public investment disbursement while improving investment efficiency, particularly in the 12 ministries and localities where disbursement remains slow, as well as for major infrastructure projects.
On production, business activity and trade, ministries, local authorities, state-owned groups and enterprises were urged to closely follow growth scenarios and identify areas with untapped potential, especially in the 22 provinces where industrial output has fallen short of projections.
The Ministry of Industry and Trade was tasked with ensuring adequate fuel and electricity supplies to support growth, promoting trade by sector and market, and closely monitoring trade balances to address potential import surges.
The Ministry of Culture, Sports and Tourism was asked to introduce measures to attract more international visitors, particularly from Asian markets, while stimulating domestic tourism and consumer spending during the summer season.
Regarding price management, the Ministry of Industry and Trade and other ministries, agencies and local governments were instructed to coordinate efforts to regulate supply and demand, manage markets effectively, and take strict action against hoarding, profiteering and unjustified price increases.
The Ministry of Health, the Ministry of Education and Training, and the Ministry of Industry and Trade were directed to carefully evaluate any roadmap for increasing healthcare service fees, education charges and electricity prices in line with inflation management scenarios.
The Ministry of Finance also called on ministries and agencies to focus on key priorities, including resolving obstacles facing the new two-tier local government system, addressing delayed projects and surplus public assets, and further developing financial, credit and capital markets.
In areas such as social welfare, disaster prevention and response, the Ministry of Home Affairs, the Ministry of Ethnic and Religious Affairs, and local governments were instructed to monitor the impact of inflation on vulnerable groups, including low-income households, ethnic minority communities and policy beneficiaries, and provide timely support measures while stabilizing prices of essential goods.
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