Prime Minister Pham Minh Chinh has issued Directive No. 05, outlining key tasks and breakthrough measures to drive economic growth and accelerate public investment disbursement, aiming for Vietnam’s GDP growth to reach at least 8% in 2025.

The directive emphasizes that achieving this 8% growth target is challenging but essential for creating momentum for long-term economic expansion. It lays out comprehensive strategies to promote economic development, administrative reforms, and public sector efficiency.

Strengthening economic policies and business incentives

To support economic growth, the directive mandates the Ministry of Finance to propose tax reductions, exemptions, deferrals, and adjustments in fees and land lease payments. These policies aim to boost business activities, domestic consumption, tourism, and production.

The government also calls for the urgent development of a resolution on breakthrough policies for private sector growth, ensuring that Vietnam’s economic environment remains competitive and conducive to investment.

Vietnam’s 2025 state budget revenue is expected to reach its highest possible level under government directives. Meanwhile, non-essential public expenditures will be minimized, with 10% of increased recurrent spending in 2025 redirected toward funding the Lao Cai - Hanoi - Hai Phong railway project.

Government agencies at all levels are instructed to review and amend outdated, overlapping, or incomplete regulations, ensuring that any obstacles to economic activities are promptly addressed at the appropriate administrative level. The directive also emphasizes decentralization and delegation of authority, coupled with enhanced oversight and enforcement to ensure government efficiency and accountability.

Improving administrative procedures and business environment

Directive No. 05 highlights the need for administrative reform to reduce bureaucratic burdens on businesses and individuals. The government aims to:

Cut administrative processing times by at least 30% in 2025.
Reduce business operating costs by at least 30%.
Eliminate at least 30% of unnecessary business regulations.
Ensure all business-related procedures are fully digitized and seamlessly integrated, reducing paperwork and improving transparency.

To accelerate public investment, the directive sets a target for at least 95% of allocated public investment funds to be disbursed in 2025. The government views public investment as a catalyst for mobilizing broader private sector engagement in economic development.

Strict disciplinary measures will be imposed on individuals or organizations that deliberately delay public investment disbursement. Legal action will be taken against those who create bureaucratic hurdles, slow funding approvals, or engage in corruption in public investment management. Inefficient officials who avoid responsibility or delay decision-making will be promptly replaced.

Expanding investment and national infrastructure

The Ministry of Finance is tasked with attracting more foreign direct investment (FDI) through targeted investor engagement programs. Vietnam will also scale up its task force model to work directly with strategic foreign investors, particularly those in high-tech and large-scale projects.

Meanwhile, the Ministry of Construction will coordinate with relevant agencies to establish a National Housing Fund to support the development of affordable housing in major cities, social housing projects, and housing for young people under 35.

The directive also emphasizes national digital transformation, urging all ministries and local governments to integrate science, technology, data, and innovation into economic development. Vietnam aims to establish a robust digital economy while ensuring cybersecurity and data protection.

Technological innovation and environmental initiatives

The Ministry of Science and Technology has been assigned to:

Accelerate 5G commercialization and conduct research on 6G technology.
Develop satellite telecommunications infrastructure and upgrade the national broadband network.
Additionally, the Ministry of Agriculture and Rural Development and the Ministry of Natural Resources and Environment must review and implement strategies for the exploration and sustainable use of marine, underground, and space resources.

Public sector reform: Attracting top talent and removing inefficiency

The Ministry of Home Affairs will continue refining policies to attract top talent to government agencies, ensuring that skilled professionals and high-performing civil servants are recognized and rewarded.

Simultaneously, the ministry will introduce mechanisms to remove incompetent or unethical officials from the system. The government is determined to foster a culture that encourages bold decision-making and protects officials who take initiative in their roles.

Tran Thuong