Prime Minister demands 'highest determination' to meet 2026 growth target

Prime Minister demands 'highest determination' to meet 2026 growth target

PM Lê Minh Hưng warned of continued pressures on economic management, production and business activity, public investment disbursement, exports, financial markets and the livelihoods of parts of the population.

Prime Minister Lê Minh Hưng concluded the August Government meeting in Hà Nội on September 3. — VNA/VNS Photo

Prime Minister Lê Minh Hưng on Thursday called for an acceleration of economic reforms and investment as the Government seeks to meet its 2026 growth targets, with only a few months left.

"Now is the time to accelerate and make breakthroughs with the highest determination," Hưng said at a regular Government meeting in Hà Nội, highlighting strong trade, foreign investment and industrial production in the first eight months of the year.

Việt Nam's exports and imports totalled US$770.1 billion in the first eight months, up 28.7 per cent from a year earlier. Exports rose 22.4 per cent to an estimated $374.8 billion, the highest growth rate since 2021, while imports increased 35.3 per cent to $395.3 billion.

The country recorded a trade deficit of $120 million in August, sharply down from $3.6 billion in July, according to reports presented at the meeting.

Foreign investment also remained a major source of growth. Registered foreign investment reached a record $40.6 billion in the first eight months, up 55.4 per cent year-on-year, while disbursed FDI rose 12 per cent to $17.3 billion.

Industrial production expanded 14.4 per cent in August from a year earlier, while the industrial production index rose nearly 12 per cent in the first eight months. Manufacturing and processing increased an estimated 12.5 per cent.

International tourism also continued to grow, with Việt Nam receiving nearly 16 million foreign visitors in the first eight months, up 14.4 per cent from a year earlier.

State budget revenue reached VNĐ2.03 quadrillion during the January–August period, equivalent to 80 per cent of the annual estimate, while public investment disbursement stood at nearly VNĐ510 trillion, or 49.8 per cent of the year's plan.

The Government report said macro-economic stability had been maintained, with major economic balances broadly ensured. It also highlighted progress in clearing long-running projects and bottlenecks, saying 2,684 of 4,899 stalled projects had been fully addressed by the end of August, involving more than 102,000 hectares and total investment of more than VNĐ2 quadrillion.

The International Monetary Fund raised its forecast for Việt Nam's 2026 economic growth to 8.2 per cent in August, from 7.1 per cent in April, according to the Government report.

Focus on exports, investment and public spending

Despite the positive results, the PM warned of continued pressures on economic management, production and business activity, public investment disbursement, exports, financial markets and the livelihoods of parts of the population.

He called for monthly and quarterly updates to growth scenarios and said authorities must identify and remove bottlenecks, particularly in sectors and localities with strong growth potential. The Government is targeting double-digit growth while maintaining its objective of controlling inflation.

The Ministry of Finance was instructed to accelerate public investment disbursement with the goal of completing 100 per cent of the assigned plan, while developing capital markets, corporate bonds and the stock market to provide businesses with alternatives to bank credit.

Meanwhile, the State Bank of Vietnam was told to maintain flexible monetary policy, coordinate closely with fiscal policy, direct credit towards priority sectors and major projects, and seek to lower lending rates while keeping liquidity stable.

The Government also aims to boost exports while containing the trade deficit. The Ministry of Industry and Trade was instructed to identify export categories that have declined and products responsible for large trade deficits, while expanding trade promotion in Halal markets as well as in Latin America and Africa.

Export orders for products in high demand, including electronics, machinery and agricultural and aquatic products, should be a major area of focus.

The Government will also prioritise infrastructure, strategic technology, digital transformation and social housing. Authorities are currently carrying out 903 social housing projects nationwide comprising more than 856,000 apartments, of which more than 300 projects involving over 200,000 apartments have been completed.

Push for faster reforms

PM Hưng has placed particular emphasis on completing the legal framework needed to support growth.

The Government has submitted 15 laws and five legislative resolutions to the National Assembly, while 44 documents have been issued to implement laws and resolutions already in force. Only one document providing detailed implementation guidance remains outstanding.

Ministries were instructed to complete 27 decrees detailing 14 laws and one resolution approved during the National Assembly's recent extraordinary session. The PM also called for the preparation of legislation expected to be submitted at the National Assembly's second session.

He also ordered ministries and local authorities to accelerate strategic technology programmes, improve data connectivity and address bottlenecks in digital transformation.

With the end of the year approaching, PM Hưng urged Government members to act with responsibility, initiative, creativity and flexibility to achieve the targets set for 2026. 

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