70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Vietnam faces potential state budget loss of US$1.82 billion on Covid-19
Nguyen Tung 13:54, 2020/02/17
In case the epidemic persists for around four to five months, or even longer, manufacturing sectors with high dependence on input materials from China would be in trouble.

Vietnam would face a potential loss of VND42.3 billion (US$1.82 billion) in state budget revenue due to the impact of the Covid-19 epidemic, according to the Ministry of Planning and Investment (MPI).

 Illustrative photo.

The MPI has said in a report that the outbreak could lead to a decline in revenue from the domestic taxes, trading activities and crude oil, local media reported.

In case the Covid-19 epidemic is contained in the coming two or three months, industries such as tourism, transportation, commerce, agricultural export – import, among others, are predicted to be the most vulnerable.

Other business activities with high flexibility would face a decline in growth, while only a handful can maintain normal operations, suggested the MPI.

However, in case the epidemic persists for around four to five months, or even longer, manufacturing sectors such as textile and garment, footwear, electronics, consumption goods with high dependence on input materials from China and even multinationals such as Apple, Samsung or LG would struggle.

The MPI said the implementation progress of projects using Chinese capital, labor and input materials would slow down and affect growth of related fields and sectors.

Additionally, a stagnation in Vietnamese exports to China due to the outbreak would cause negative impacts on domestic production.

The MPI has drawn up two scenarios. In the first scenario, the state budget revenue would reach VND1,494 trillion (US$64.30 billion), down VND18.1 trillion (US$779 million) or 1.2% compared to the initial estimate, if the outbreak is contained right in the first quarter.

In another scenario where Covid-19 is put under control in the second quarter, the budget revenue is estimated at VND1,470 trillion (US$63.26 billion), down VND42.3 trillion (US$1.82 billion) or 1.6% of the initial estimate.

RELATED NEWS
TAG: Vietnam Samsung LG China state budget covid-19 coronavirus nCoV MPI
Other news
15:07, 2024/06/08
Number of securities accounts in Vietnam reaches new high
On average, about 4,265 new retail and institutional accounts were added to the market each day.
21:52, 2024/05/27
C.bank not considering dropping credit growth quota for fear of rising bad debts
Given the unique economic conditions of Vietnam, if banks increase credit growth without control measures, the system could return to the hot credit growth period seen before 2011.
18:20, 2024/05/09
Vietnam's non-cash payments reach US$9.8 trillion, 23 times GDP
Many of the banking industry's digital transformation goals for 2025 are on track to be met or exceeded.
21:53, 2024/05/04
PM urges Central bank to ensure positive growth in 2024
Local lenders are encouraged to provide incentives and attract individuals to take out consumer loans.
17:07, 2024/05/03
Vietnamese Gov't to continue VAT cut for second half of 2024
If the VAT reduction policy is continued for the last six months of the year, the total revenue loss for 2024 is projected to be approximately VND47.5 trillion (US$1.87 billion).
21:54, 2024/04/23
3,400 taels of gold purchased at the first-in-11-year auction
Gold trading firm SJC and lender ACB are the two successful bidders at the auction held today.