Prime Minister: The target for 2027 is double-digit growth

The above content is stated in the Prime Minister’s Directive signed by Deputy Prime Minister Nguyen Van Thang on June 12 on the socio-economic development plan and state budget estimate for 2027.

According to the Directive, next year is the second pivotal year to achieve the double-digit growth target. Meanwhile, the international context is forecast to continue to be volatile, from geopolitical conflicts, inflationary pressures, climate change to challenges in energy and food security.

On that basis, the Prime Minister requested ministries, localities, corporations and state-owned corporations to realistically evaluate the results of implementing the 2026 plan and forecast for 2027 with a long-term vision, take advantage of opportunities and overcome bottlenecks.

The development orientation is determined to be double-digit growth associated with macroeconomic stability, controlling inflation and ensuring major balances of the economy. The Government also requires the establishment of a new growth model with science and technology, innovation and digital transformation as the main driving force, while promoting strategic breakthroughs, international integration and ensuring social security.

The Directive also requires that planning indicators must be capable of collecting information, continuously monitoring, periodically evaluating, and being able to compare with past data.

Regarding the 2027 budget estimate, the Government strives to increase domestic revenue (not including specific revenues such as land use fees, lottery or sale of state capital) by an average of 13-15% compared to this year’s estimate. Revenue from import and export activities is expected to increase by about 5-7%.

In terms of budget spending, the Prime Minister requested ministries and localities to thoroughly save and cut unnecessary expenses, especially spending on conferences, seminars and foreign trips. At the same time, agencies must continue to restructure budget expenditures in the direction of reducing the proportion of regular expenditures, increasing development investment, prioritizing resources for national target programs, breakthrough tasks and ensuring social security.

The Government also requires appropriate resources to adjust public sector salaries, pensions for the portion guaranteed by the state budget and preferential policies for people with meritorious services and social protection according to the ability to balance the budget.

For local budgets, 2027 will be the first year to fully implement the decentralization of revenue sources and expenditure tasks according to the new State Budget Law. Localities are required to develop principles and criteria for budget allocation, and determine the ratio of revenue division between provincial and commune-level budgets. At the same time, localities must prioritize allocating resources for science and technology, innovation and digital transformation, according to the directive.