Joining Forces to Tackle the National Development Challenge

Paying close attention to the merger and streamlining of the apparatus, National Assembly Deputy Tran Hoang Ngan (Ho Chi Minh City) raised the issue that prior to the merger, the Ministry of Finance and the Ministry of Planning and Investment, due to differing functions and duties, often had divergent views and objectives.

Specifically, according to the Deputy, the Ministry of Planning and Investment always sought to prioritize high growth, implement numerous projects, and pursue large-scale investment. The Ministry of Finance, meanwhile, prioritized controlling public debt, ensuring fiscal balance, and exercising cautious expenditure control. The Ministry of Planning and Investment favored tax incentives, investment attraction, tax reductions, and demand stimulation. The Ministry of Finance, on the other hand, focused on combating tax losses, increasing budget revenues, and reducing budget expenditures.

In his capacity as Minister after the merger, the Deputy requested that the Minister propose solutions to achieve high growth while still ensuring sustainable development.

Responding to this question, Minister of Finance Nguyen Van Thang stated that the Party, the State, and competent authorities’ decision to establish both the Ministry of Planning and Investment and the Ministry of Finance was derived from practical requirements. From such practical needs arose the functions, duties, and powers of each State organ, including the Ministry of Finance and the Ministry of Planning and Investment.

According to the Minister, because of different priorities, in the process of seeking solutions to achieve growth targets, negotiation and compromise were inevitable. From that process emerged the most effective, swiftest, and most accurate approaches to solving the national development equation.

“All is aimed at successfully implementing the orientations, viewpoints, and development objectives set forth by the Party, the National Assembly, and the Government, to ensure rapid and sustainable national development, maintain macroeconomic stability, and secure the major balances of the economy.” Stressing this goal, the Minister also affirmed that at any stage, this has always been the highest and overarching objective of both ministries previously, and now of the Ministry of Finance.

“The clearest evidence is that public debt safety indicators have always been tightly controlled; by the end of 2024, public debt stood at about 34.7% of GDP, and government debt was around 32.2% of GDP—both significantly below the ceilings authorized by the National Assembly.” From this typical example, the Minister noted that even when the two ministries operated independently, there was effective coordination to uphold fiscal discipline and safeguard national financial security.

Affirming that “only by maintaining macroeconomic stability can we achieve growth; only by strictly controlling public debt and investing in key projects can we continue to advance public investment,” the Minister emphasized that the functions of the Ministry of Finance and the Ministry of Planning and Investment previously complemented each other.

Fiscal Discipline as a Firm Foundation for Development

“The merger of the two ministries ensures a streamlined apparatus, with enhanced effectiveness and efficiency, while reducing intermediary layers. If previously the balance between investment and fiscal safety required coordination between two agencies, now that equation is resolved within a unified entity, thereby delivering ‘synergy and efficiency,’” Minister Nguyen Van Thang emphasized.

Specifically, according to the Minister, the Ministry of Finance after the merger has a more comprehensive and integrated vision. The formulation of socio-economic development strategies, budget management, and resource allocation advice for investment is now carried out in a unified and consistent manner, enabling decisions to be made promptly, accurately, and without delay.

The Ministry of Finance also has the conditions to optimize the use of national resources. The issue is not merely how much to spend, but more importantly, where to spend to generate the greatest efficiency and to direct public investment capital in a focused, prioritized manner.

The consolidation also enables the Ministry of Finance to be more proactive in mobilizing resources for development. When investment strategies and financial planning are unified, the Government can proactively and flexibly design borrowing and debt repayment plans, thereby both meeting capital needs for projects and ensuring long-term public debt safety.

“It is evident that this consolidation is for ‘synergy,’ creating a new, more effective governance mindset: rapid growth must be sustainable, investment must be effective, and fiscal discipline must serve as the solid foundation for prosperity,” Minister Nguyen Van Thang underscored.