Formulation of a 5-Year Financial Plan for Hanoi, Vietnam for the Period 2026 - 2030

Formulation of a 5-Year Financial Plan for Hanoi, Vietnam for the Period 2026 - 2030 (Internet image)

Formulation of a 5-Year Financial Plan for Hanoi, Vietnam for the Period 2026 - 2030

To actualize the goals of the national 10-Year Socio-Economic Development Strategy for 2021 – 2030 and the orientations and tasks for developing Hanoi until 2030, with a vision to 2045 under Resolution 15-NQ/TW dated May 05, 2022 of the Politburo, Hanoi People's Committee issued Directive 08/CT-UBND dated June 24, 2024, regarding the construction of a 5-year financial plan for Hanoi City for the period 2026 - 2030.

The Chairman of Hanoi People's Committee requests the Department of Finance to take the lead, in cooperation with the Department of Planning and Investment and other relevant local agencies, in developing the 5-year financial plan for Hanoi City as follows:

(1) Forecast the economic and financial situation, key socio-economic indicators of the City (Gross Regional Domestic Product growth - GRDP), consumer price index, growth of production sectors, industries, and prices of key products and goods) affecting the ability to mobilize and the demand for the use of financial resources - local budgets over the 5-year period from 2026 - 2030.

(2) Determine the general objectives of the 5-year financial plan of the City; objectives and orientations for mobilizing and distributing the City's resources during the 5-year plan period.

(3) Identify specific, primary objectives; the balance framework for the financial-budget of the City based on current policies and policies; including:

- Revenue and budget structure in the area appropriate to the projections for direction, economic-social development goals of the City for the same period; City's share of budget revenues according to decentralization (detailed by land levy revenue, lottery revenue, post-tax dividend and profit revenue); factors affecting state budget revenue in the area, and policy and management solutions to mobilize state budget revenue, especially from major revenue-generating enterprises and sectors.

Forecast the capital recovery Clauses of the City's budget invested in economic organizations within the 5-year management scope from 2026 - 2030.

- Local budget expenditure of the City, including: Total expenditure and budget structure based on 2025 mechanisms and policies, detailed by development investment expenditure (highlight the development investment expenditure structure by nature of centralized basic construction sources, land use sources, lottery sources, City's budget deficit sources), regular expenditure, debt interest payment, and total City's salary fund expenditure; factors affecting the City's budget expenditure; policy and management solutions to ensure a reasonable, sustainable expenditure structure, enhancing the efficiency of City's budget expenditure;

Projected sources of implementation for the Capital Law (amended), new policies as stipulated, and sources of revenue increase, expenditure savings, sources from reorganizing the apparatus, and staffing reduction (if any).

- Local budget balance of the City: Local budget deficit or surplus; total borrowing by the local budget, including borrowing to cover the deficit and borrowing to repay the principal of the local budget.

(4) Debt management indicators of the City, including: Borrowing limit, local government borrowing balance; projected borrowing, debt repayment.

(5) Forecasts of risks impacting the local budget balance framework and debt management indicators of the local government of the City.

(6) Other financial solutions to implement the 5-year financial plan for Hanoi City, Vietnam.

The full content of the Directive can be found here.

Tran Trong Tin

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