Vietnam PM requests swift completion of draft Politburo resolution on foreign economic sector development

Prime Minister Pham Minh Chinh has ordered quick completion of a draft resolution on developing the foreign economic sector for submission to the Politburo, the country's highest decision-making body.

In the prime ministerial directive on measures to support the country’s 2026 growth target issued on Saturday, relevant agencies were required to coordinate with the Party Central Committee Office to rapidly finalize the draft.

Chinh also underscored the need to strengthen institutional frameworks to attract foreign direct investment (FDI) and requested intensified investment promotion to lure large-scale, high-technology projects.

Authorities were instructed to attract and support multinational groups and strategic investors, prioritizing projects in semiconductors, artificial intelligence, and digital technologies.

In May 2025, the Politburo issued Resolution 68 on domestic private sector development. The resolution outlined measures to strengthen linkages among domestic private firms and between domestic private firms and state-owned enterprises/foreign-invested companies.

The state pledged to support advisory and trade promotion services to connect FDI firms with domestic private companies in industrial parks, key economic zones, and free trade zones.

It also asked for the application of appropriate localization ratios over time in priority industries, and for large FDI projects to include plans to use domestic supply chains from the project approval stage.

The resolution further proposed supporting start-ups by managers and engineers with experience at FDI firms, leveraging their expertise, management models, and business networks to integrate into global supply chains.

Vietnam recorded $27.62 billion in implemented FDI capital for 2025, up 9% year-on-year and marking the highest level in five years. Of this, the manufacturing and processing sector received $22.88 billion, accounting for 82.8% of the total, followed by real estate with $1.93 billion (7%), the General Statistics Office (GSO) reported.

Registered FDI capital, which includes registered capital comprises capital for newly-registered projects, additional capital for existing projects, and capital for stake acquisitions, reached $38.42 billion, up 0.5% from a year earlier.

Foreign-invested firms accounted for more than 73% of Vietnam’s total exports and over 69% of total imports in the year.

The proposed resolution on developing the foreign sector is seen as a move to complete the policy framework covering Vietnam’s three key economic sectors, as the country adjusts its integration and development strategy for a new phase. The Politburo early this month introduced Resolution 79 on state economic sector development.

The planned resolution signals that Vietnam continues to view FDI as a key growth driver, with policies aimed not only at attracting new projects but also at retaining and bolstering existing investors.

The government hopes this approach will help the country move deeper into global value chains, reduce reliance on low-value assembly work, and enhance its position in regional and global production networks.

SOEs must achieve growth rate of 10% or more

In the same directive, Prime Minister Chinh has requested state-owned economic groups and corporations to play a locomotive role in driving the economy.

He asked them to strive for output or revenue growth of at least 10% in 2026 while accelerating key infrastructure projects and proposing new investment plans.

According to the dispatch, 2026 holds special significance as the first year of the country’s 2026-2030 socio-economic development plan, marking the start of a new development phase.

For state-owned groups and corporations, Chinh stressed the need to improve governance and business efficiency, and to act as growth leaders with spillover effects across the broader economy, as Vietnam sets a high growth target for 2026.

Macro policy aimed at double-digit growth

The dispatch outlined a macroeconomic management approach based on proactive, flexible and closely coordinated fiscal and monetary policies to support growth, maintain macroeconomic stability, and keep inflation under control.

On the fiscal side, the government will continue a targeted and selective expansionary stance, aiming to raise state budget revenues by at least 10% in 2026 compared with the estimated 2025 outturn. Tax and fee cuts and extensions, as well as land rent reductions, will remain in place to support businesses and households.

The Prime Minister ordered effective use of public debt and budget deficit headroom within safe limits to mobilize resources for development investment, including issuing government bonds for key infrastructure, science-technology and innovation, and digital transformation projects.

Vietnam’s stock market and corporate bond market should be developed in a stable and safe manner to become effective channels for medium- and long-term capital mobilization, the dispatch said.

On monetary policy, the State Bank of Vietnam was tasked with managing interest rates and the exchange rate in line with macroeconomic conditions to stabilize the dong, while directing credit towards production and business activities, priority sectors, and key growth drivers.

The central bank was asked to urgently study and propose the establishment of a national gold trading exchange, with a report due in January 2026.

The government aimed to disburse 100% of the 2026 public investment plan, viewing it as a critical growth driver. Bottlenecks related to land clearance, construction materials, and investment procedures must be addressed promptly, with capital flexibly reallocated from slow-moving projects to those with stronger implementation capacity.

Over the longer term, the dispatch highlighted the need to create breakthroughs in new growth engines, including science-technology, innovation, digital transformation, and the green economy, as well as strategic infrastructure such as railways, seaports, aviation and the International Financial Center.

Vietnam’s economy grew 8.02% in 2025, its second-fastest pace in the past 15 years, driven mainly by services and industrial production, data from the National Statistics Office shows.

The country’s growth of 8.02% in 2025 stood out as a bright spot amid continued global volatility, including trade tensions and U.S. reciprocal tariff policies, and world's economic slowdown.

The National Assembly, Vietnam's legislature, on November 12 approved a resolution setting an economic expansion target of at least 10% for 2026, per capita GDP at $5,400-5,500, and inflation controlled at around 4.5%.