The directive comes as Vietnam seeks to enhance fiscal sustainability while maintaining strong economic growth.

Prime Minister Pham Minh Chinh has directed the Ministry of Planning and Investment to submit a report on adjusting growth targets, fiscal deficit, and public debt while ensuring that recurrent expenditures account for less than 60% of total budget spending.

This directive was among the key conclusions made by the Prime Minister during the regular government meeting on February 5.

Emphasizing self-reliance and perseverance, he urged officials to act decisively, balancing communication with tangible actions. He stressed that national goals can only be achieved if each government agency fulfills its responsibilities on a monthly and quarterly basis.

Among the primary tasks and solutions, the Prime Minister prioritized the effective implementation of resolutions from the Central Committee, the Politburo, the National Assembly, and the government.

He specifically highlighted the need to enforce Central Committee Conclusion No. 123 on economic and social development plans for 2025, which set a target growth rate of 8% or higher.

Currently, nearly 70% of the state budget is allocated for salaries and recurrent expenditures, leaving limited funds for development investments.

General Secretary To Lam has repeatedly emphasized the need to restructure spending to ensure sustainable growth.

The Prime Minister instructed thorough preparation for the upcoming ninth extraordinary session of the 15th National Assembly. He also tasked the Ministry of Planning and Investment with leading efforts to adjust growth targets, fiscal deficit limits, and public debt management while ensuring that recurrent expenditures fall below 60% of total budget spending.

Another critical priority is institutional reform, which the prime minister described as the "breakthrough of breakthroughs." He called for streamlining government agencies, improving operational efficiency, accelerating administrative reforms, and advancing digital transformation.

He further emphasized the need to drive economic growth by revitalizing traditional economic drivers while fostering new growth engines.

Key infrastructure projects must also be completed, including at least 3,000 km of expressways and over 1,000 km of coastal roads by the end of this year.

He called for increased efforts to attract large-scale, high-tech foreign direct investment (FDI) projects, particularly in the processing, manufacturing, electronics, semiconductor, and hydrogen industries.

An additional 10% cut in recurrent expenditures

The Prime Minister underscored the importance of maintaining macroeconomic stability, controlling inflation, and ensuring the country's major economic balances. He set an electricity growth target of 12.5% to 13%.

He called for robust measures to expand credit growth to at least 16%, directing funds toward production, business activities, and key growth sectors while tightening control over high-risk lending areas. Additionally, he urged efforts to lower interest rates.

Ministries and local governments were also instructed to reduce recurrent expenditures by an additional 10% in 2025 compared to the 2024 budget, with the savings allocated to the development of the Lao Cai – Hanoi – Hai Phong railway.

The Prime Minister urged further research and proposals for tax and fee reductions to support citizens and businesses. In particular, he requested the completion of a draft resolution for the National Assembly on agricultural land tax exemptions, which must be submitted to the government in the first quarter of 2025.

Additionally, he directed the Ministry of Health to promptly review government members' feedback and finalize a resolution to resolve difficulties faced by Viet Duc and Bach Mai hospitals at their second facilities.

He also emphasized strict enforcement of Decree 168 on administrative penalties for violations of traffic order and safety while strengthening anti-corruption, anti-waste, and anti-misconduct efforts.

Thu Hang