Strengthening Local Governance and Economic Growth in Vietnam

General Secretary To Lam highlighted the importance of reforming governance structures to promote equality between central and local authorities. He emphasized that local governments should have the authority to seek guidance and solutions from the central government to tackle challenges and enhance regional development.

During the wrap-up of the 13th Central Committee Conference on January 24, To Lam shared that plans for socio-economic development in 2025 were approved, aiming for a minimum growth rate of 8%. The committee set an ambitious goal for 2026 to 2030 to maintain double-digit annual growth.

“Achieving these goals is crucial for Vietnam to move beyond the middle-income level and transition into a modern industrialized nation with upper-middle-income status by 2030, advancing to a high-income developed country by 2045,” he articulated.

The Central Committee urged all government tiers, the Fatherland Front, political groups, and party members to implement targeted actions to utilize resources effectively, seize opportunities, and realize Vietnam’s potential for rapid yet sustainable growth.

Critical reforms in institutions were labeled as the “breakthrough of breakthroughs.”

For immediate action in 2025, the committee plans to revise laws surrounding land use, public investments, and business management to alleviate existing challenges. They aim to adopt a “results-oriented management” system that moves away from pre-approval processes to post-monitoring with better oversight of authority.

The Central Committee also emphasized the need for policies that tackle inefficiencies, such as dormant land, unfinished projects, and unresolved issues. The focus will be on easing constraints in the real estate and capital markets, particularly concerning corporate bonds, to quickly enhance supply.

Public investment will be optimized, private investment promoted, and targeted foreign direct investment (FDI) encouraged.

Fiscal policy will be adaptable, targeting credit growth toward production, employment, and priority sectors. Initiatives to stimulate domestic consumption, tourism, and overall economic activity will involve tax measures aimed at increasing purchasing power and enhancing living standards, particularly for lower-income citizens.

The completion of strategic infrastructure, including transportation, energy, and digital technology, remains a top priority. Projects focusing on offshore wind energy and nuclear power, along with Vietnam’s Power Plan 8, will ensure sufficient energy supply to support double-digit growth.

Emphasis will be placed on science, technology, innovation, and digital transformation in line with the Politburo’s Resolution 57. This will include fostering emerging industries, space exploration, and low-Earth orbit satellite communications, while advancing 5G commercialization and initiating 6G research as well as enhancing workforce capabilities.

Efforts will also aim to attract Vietnamese scientists abroad and international experts to spur innovation and technological progress in Vietnam.

The General Secretary reiterated the need for institutional reforms to build a culture of equality between central and local governments. Local authorities should have the opportunity to not only follow directives but also propose methods and solutions for their development.

The central government is tasked with promptly addressing local proposals in a clear and responsible manner, moving away from vague responses or delegating responsibilities. The commonplace approach of stating, “Implement in accordance with the law,” needs to be replaced with decisive actions for efficient governance.

Accountability was emphasized as a fundamental principle, with leaders required to actively engage in follow-up, oversight, and responsibility for their assigned duties. The outcomes of performance will be critical for assessing individuals and units.

In closing, the General Secretary stressed the necessity for Vietnam’s political framework to function cohesively from the central to local levels under the guiding principle that prioritizes completing essential work.