Deputy Prime Minister Le Thanh Long: Public Debt Significantly Below Regulatory Limits; Development Investment to Account for 40%

On the afternoon of October 30, at the National Assembly Hall, Deputy Prime Minister Le Thanh Long delivered a speech as assigned by the Prime Minister. His address followed discussions by delegates on government reports concerning finance, state budget, and public investment. The Deputy Prime Minister clarified three key issues of national interest regarding state budget collection and expenditure, as well as public investment disbursement.

Expressing gratitude for the delegates’ input, Deputy Prime Minister Le Thanh Long stated that he would report to the Prime Minister, instructing the Ministry of Finance and relevant agencies to seriously consider and address these opinions. He emphasized the importance of implementing feasible solutions to enhance state budget management, public investment, and public debt repayment.

Budget Revenue Increases 1.36 Times, Public Debt Well Below Limit

Deputy Prime Minister Le Thanh Long highlighted that despite significant challenges, Vietnam has demonstrated strong determination in achieving its budget revenue and expenditure targets. The country has surpassed all 12 key indicators for the term. State budget revenue is estimated at VND 9.6 quadrillion, 1.36 times higher than the previous term and exceeding the VND 8.3 quadrillion target. This achievement is notable given the VND 1.1 quadrillion in tax reductions, exemptions, and extensions, along with VND 1.57 quadrillion in revenue increases and expenditure savings.

The government has implemented an expansionary fiscal policy, focusing on key areas and ensuring efficiency. This policy has been coordinated with a proactive, flexible, and effective monetary policy to promote growth. Public debt, government debt, foreign debt, and budget deficits are well-controlled, remaining significantly below the mandated limits. Public debt has decreased from 44.3% of GDP in 2020 to approximately 35-36% in 2025 (with a limit of 60% of GDP). The average budget deficit has also decreased from 3.53% of GDP in 2016-2020 to 3.1-3.2% of GDP in the current term.

Domestic Revenue from Production and Business Activities Increases by Approximately 11.1% – the Highest Target Ever

According to Deputy Prime Minister Le Thanh Long, amidst global volatility and numerous challenges, Vietnam has approached state budget revenue estimation with caution, ensuring national financial security. This includes maintaining budget deficits, public debt, government debt, and foreign debt within safe limits. The budget is allocated to meet development investment needs, social welfare, national defense, and urgent tasks such as disaster relief.

The government has rigorously managed revenue collection, ensuring timely and accurate collection. Efforts include promoting digital transformation, expanding e-invoice usage, and combating tax evasion in e-commerce and service sectors (e.g., restaurants and hotels).

E-commerce revenue in 2025 reached approximately VND 172 trillion, a 67% increase compared to 2024. New tax measures for business households resulted in VND 25.1 trillion in revenue in the first nine months of 2025 (a 29.6% increase year-on-year), with an estimated full-year total of over VND 33 trillion. Total additional revenue for the 2021-2025 term is VND 1.57 quadrillion, allocated to development investment, social welfare (including salary increases), national defense, and other critical tasks.

In the 2021-2025 budget structure, revenue from production and business activities accounts for 62.5%, land use fees for 13%, and import-export taxes for 13.2% (compared to 61.7%, 10.1%, and 14.1% in the previous term, respectively). Budget expenditure is allocated as follows: 32-33% for development investment and 57-58% for regular expenditures (compared to 28% and 63.2% in the previous term). For 2026-2030, development investment is planned to increase to 40%, with regular expenditures at approximately 50.7%.

“The 2026 state budget revenue estimate aligns with Party and National Assembly resolutions. Domestic revenue from production and business activities is targeted to increase by approximately 11.1%, the highest ever, surpassing the 10% economic growth target. This estimate considers factors affecting import-export, land, and resource revenues,” Deputy Prime Minister Le Thanh Long stated.

Moving forward, the government will direct the Ministry of Finance and relevant agencies to enhance information technology application and digital transformation, focusing on analysis and forecasting to improve budget revenue estimation and management.

Public Investment Disbursement Slow at the Beginning of the Year, Accelerating Towards the End

Deputy Prime Minister Le Thanh Long reported that public investment disbursement from the beginning of the year to October 23, 2025, was VND 465 trillion, achieving 51.7% of the Prime Minister’s plan. This disbursement rate is similar to the same period in 2024 (51.5%), but the absolute amount is VND 115.658 trillion higher (compared to VND 349.170 trillion in 2024).

Generally, public investment disbursement is slower at the beginning of the year and accelerates towards the end. This pattern is due to contractors needing time to execute projects, accumulate sufficient volume for acceptance, and process payments by year-end. Over the term, disbursement in the first nine months typically reaches 49-51%, while year-end disbursement consistently achieves 91-95%.

Since the beginning of the term, the government and the Prime Minister have prioritized public investment disbursement, holding four online conferences with ministries, agencies, and localities. Eight directives and numerous documents have been issued to accelerate disbursement. The Prime Minister, Deputy Prime Ministers, and government members have conducted on-site inspections, addressed bottlenecks, and monitored progress.

The government has proposed legal amendments to the National Assembly to resolve public investment issues, including separating land clearance into independent projects. Twelve areas of authority have been decentralized to ministries and localities, shifting investment management from ex-ante to ex-post control. These areas include investment plan adjustments, investment decision-making, and disbursement timeline extensions. Efforts are also underway to address challenges identified in Resolution No. 206/2025/QH15.

Despite these efforts, public investment disbursement remains slow in some areas due to various objective and subjective reasons. The 2025 public investment scale is approximately VND 900 trillion, a 33% increase from 2024 (VND 678 trillion). Some agencies and localities lack capacity, proactiveness, and accountability. While the Public Investment Law allows separate land clearance projects, implementation challenges persist, including delays in land handover and land origin determination.

In response to National Assembly delegates’ feedback, the government is committed to addressing these issues and achieving 100% of the Prime Minister’s 2025 disbursement target (5-6% higher than previous years). Measures include legal improvements, task force activation, expedited land clearance, and enhanced project preparation and implementation. Strict adherence to the amended Public Investment Law will be enforced, with penalties for delays and accountability for leaders.

“In addition to the above, the government will continue to direct ministries, agencies, and localities to thoroughly address delegates’ concerns, ensuring the successful implementation of socio-economic development goals and financial tasks in the new phase,” Deputy Prime Minister Le Thanh Long concluded.