Decision 1119/QD-TTg: Amendments to the National Financial Strategy to 2030
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Based on:1119/QD-TTg - Government Official Gazette
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On June 23, 2026, the Prime Minister issued Decision 1119/QD-TTg amending and supplementing the National Financial Strategy to 2030 (originally issued under Decision 368/QD-TTg dated March 21, 2022). The amendment updates national fiscal targets to align with the newly adopted «double-digit growth» goal (GDP growth of 10% per year or more) for 2026-2030, tying the strategy to recent National Assembly and Politburo resolutions on socio-economic development, national finance, and the private sector. The decision revises a wide range of targets: the state budget revenue mobilization ratio rises to about 18% of GDP for 2026-2030 (with tax and fee revenue around 14-15% of GDP); budget spending is restructured to raise the development-investment expenditure share to about 40% while cutting recurrent spending to 51-52%; the budget deficit ceiling is widened to about 5% of GDP by 2030, while the public debt ceiling remains capped at 60% of GDP. The decision also adds a new set of solutions on institutional reform and removing barriers to investment and business, targeting a top-3 ASEAN investment environment ranking by 2028, alongside restructuring state-owned enterprises and reforming the financing mechanism for public service units. For businesses and foreign investors, the notable signal is a shift in FDI attraction policy away from tax-based incentives toward other incentive forms, applying a «post-incentive, results-based incentive» approach, together with a commitment to build a modern, transparent tax system and a ban on local tax incentives that exceed current tax law. This is a macro-level strategic policy document that does not itself create immediate compliance obligations for businesses, but it is an important policy signal that SME owners, accountants, and foreign investors should track, since it will be translated into concrete tax and investment legislation going forward. The decision takes effect from its signing date (June 23, 2026).
Decision 1119/QD-TTg
On June 23, 2026, the Deputy Prime Minister (signing on behalf of the Prime Minister) issued Decision No. 1119/QD-TTg amending and supplementing a number of articles of Decision No. 368/QD-TTg dated March 21, 2022, which promulgated the National Financial Strategy to 2030. The decision is grounded in National Assembly Resolutions No. 25, 26, and 27/2026/QH16 on the 2026-2030 socio-economic development plan, national financial plan, and medium-term public investment plan, together with Government Resolution No. 109/NQ-CP, all tied to the «double-digit growth» target.
Updated fiscal and budget targets
- Budget revenue mobilization: the state budget revenue ratio averaged no less than 16% of GDP for 2021-2025, rising to 18% of GDP for 2026-2030; tax and fee revenue specifically reaches about 14-15% of GDP for 2026-2030. The share of domestic revenue in total budget revenue averages about 87-88% for 2026-2030.
- Expenditure structure: for 2026-2030, development investment spending averages about 40% of total state budget expenditure, while recurrent spending averages about 51-52% (down sharply from 60-63% in the prior period).
- Deficit and public debt: the budget deficit reaches about 5% of GDP by 2030 (central budget deficit about 4.4% of GDP, local budget deficit averaging about 0.6% of GDP). The public debt ceiling by 2030 remains capped at 60% of GDP, with government debt capped at 50% of GDP and national foreign debt capped at 50% of GDP.
- Public service units: for 2026-2030, direct state budget funding for public service units is cut by an average of 15% compared with 2021-2025, alongside stronger socialization of public services.
- State-owned enterprises: by 2030, the target is 50 state-owned enterprises ranked among Southeast Asia's 500 largest companies and 1-3 among the world's 500 largest; 100% of state-owned enterprises apply modern, digital-platform governance; and 100% of state economic groups and corporations apply OECD governance principles.
New solutions added to reach «double-digit growth»
The decision adds two new groups of solutions to Section III of the Strategy:
- Institutional reform and removing investment/business barriers: accelerating administrative procedure reform and full digitization of procedures, with a target of ranking Vietnam's investment environment among ASEAN's top 3 and the world's top 30 by 2028. For foreign investment, FDI attraction policy will shift focus away from tax incentives toward other incentive forms, applying a «post-incentive, results-based incentive» principle, while promoting technology transfer and linkages between the FDI sector and domestic enterprises. Private sector support continues under Resolution No. 198/2025/QH15, Resolution No. 138/NQ-CP, and Resolution No. 139/NQ-CP on private economic development.
- Securing the foundations for double-digit growth: closely coordinating fiscal and monetary policy to control inflation; building a modern, transparent tax system that supports growth while safeguarding budget revenue; prohibiting localities from issuing tax incentives or exemptions that exceed current tax law; managing public debt under the Law on Public Debt Management with the aim of improving Vietnam's sovereign credit rating; developing a carbon credit market and expanding foreign ownership limits in sectors that do not affect national security; and strengthening measures against origin fraud and transfer pricing.
Renumbering of the Strategy's solution groups
The decision renumbers the Strategy's 11 implementation solution groups (from the former Section 1 to the new Section 3), covering: financial resource mobilization policy and budget revenue management; allocation and use of financial resources; deficit and public debt management; financing reform for public service units; state-owned enterprise restructuring; financial market development; price management; international financial cooperation; financial supervision, inspection, and anti-waste measures; IT application and digital finance; and workforce quality in the finance sector.
Responsibility of the Ministry of Finance
The decision amends Point dd, Clause 1, Article 2, assigning the Ministry of Finance to take the lead, in coordination with relevant ministries and agencies, in balancing and allocating the annual state budget under the Law on the State Budget to implement the Strategy.
Effective date
The decision takes effect from its signing date (June 23, 2026). Ministers, heads of ministerial-level agencies, and chairpersons of provincial and municipal People's Committees are responsible for its implementation.