Vietnam remains top magnet for FDI: Finance minister

THE HANOI TIMES — Minister of Finance Nguyen Van Thang spoke with the press about the sector’s achievements in the past term and its priorities for the coming period on the occasion of the 14th National Party Congress.

How do you assess the results of institutional and policy reform in finance, investment and the state budget in recent years?

Over the past five years, both global and domestic conditions have been highly volatile and challenging, however, Vietnam's state financial and budget management recorded comprehensive and notable results thanks to the efforts of the entire political system and proactive, flexible and effective leadership.

The finance sector fulfilled all key targets for the 2021-2025 period while state financial and budget resources were managed, mobilized and used more efficiently, making an important contribution to socio-economic development.

The investment and business environment continued to improve, strongly encouraging the development of all economic sectors. The country now has more than one million active enterprises, up more than 46% from 2020. Total social investment reached about 32.2% of GDP, of which the private sector and state-owned enterprises accounted for more than 65%.

Vietnam remains a bright spot in foreign investment attraction and ranks among the world’s top 15 developing economies for FDI inflows. FDI accounts for about 16% of total social investment.

Capital markets have gradually become important funding channels for the economy. By the end of 2025, the bond market reached about VND3.93 quadrillion (US$159.1 billion), equivalent to 30.7% of GDP. Market capitalization stood at nearly VND10 quadrillion ($404.4 billion), or 77.9% of GDP. In 2025, Vietnam met all criteria and was upgraded from a frontier market to an emerging market.

The average state budget deficit in 2021-2025 was about 3.1%-3.2% of GDP. Public debt was well controlled at around 35%-36% of GDP, helping strengthen the national credit rating.

The legal framework for state finance and the budget was improved. During this period, the Ministry of Finance submitted 32 laws and resolutions to the National Assembly and its Standing Committee, issued 168 decrees and promulgated 436 circulars. The ministry focused on removing bottlenecks, promoting decentralization and cutting administrative procedures to meet new development requirements.

The average budget mobilization rate over five years reached about 18.3% of GDP. At the same time, tax and fee exemptions, reductions and extensions totaling about VND1.1 quadrillion ($44.5 billion) were implemented to support people and businesses after the pandemic.

The sector increased revenue and saved expenditure by about VND1.5 quadrillion (US$60.7 billion) to strengthen resources for development investment, national defense, security, science and technology, wage reform and social security, as well as housing and school construction in border areas.

Development investment spending rose to about 32% of total state budget expenditure, focusing on strategic infrastructure projects with strong spillover effects.

Finally, the finance sector actively promoted regional economic development, new industries and new economic models, while participating in the development of an international financial center and free trade zones. We also coordinated closely in social security work to ensure that economic growth goes hand in hand with social progress and equity.

In the coming period, what priorities will the finance sector pursue to stabilize the macro economy and promote fast and sustainable growth?

Facing new requirements and tasks, the finance sector will implement a comprehensive set of key measures.

First, we will pursue a proactive and appropriately expansionary fiscal policy with clear priorities, strengthening the leading role of the central budget while promoting initiative and creativity among ministries and localities. Fiscal policy will be closely coordinated with monetary policy to maintain macroeconomic stability, support double-digit growth and transform the development model.

In revenue and expenditure management, we will improve effectiveness and efficiency, ensure full and timely collection and foster sustainable revenue sources. We aim for an average budget mobilization rate of about 18% of GDP in 2026-2030.

Development investment spending will rise to about 40% of total state budget expenditure. Budget deficits and public debt will be managed in line with repayment capacity to further improve the national credit rating.

At the same time, we will continue to improve institutions and the legal framework for state finance and the budget, accelerate digital transformation, reform administrative procedures and enhance management and supervision capacity.

What solutions will be applied to develop economic sectors and capital and stock markets?

We will focus on improving the efficiency of the state sector, so it truly plays a leading and pioneering role in key and strategic industries.

At the same time, the private sector will develop in line with Resolution 68 on the development of the private sector. By 2030, Vietnam aims to have about two million active enterprises, with technology, innovation and digital transformation among the leading levels in ASEAN and Asia.

Capital and stock markets will be further developed as important medium- and long-term funding channels. We will make full use of the stock market upgrade and complete the legal framework for new trends such as digital assets, green transition and digital transformation.

For the FDI sector, Vietnam will pursue selective attraction, prioritizing large-scale, high-tech and environmentally friendly projects. We will also strengthen linkages between domestic firms and FDI enterprises, so Vietnamese companies can participate more deeply in global value chains and supply chains.

Thank you for your time!