WORDS ON THE STREET 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
08:08, 2024/10/05
Building Hanoi's smart city with smart banking
In Hanoi's smart city development strategy, smart payment and open banking ecosystems are critically important.
21:34, 2024/09/19
Vietnam stock market clears major legal hurdle to potential upgrade
Starting November 2, foreign investors will no longer be required to pre-fund 100% of their transactions, promising the removal of a major roadblock for Vietnam's market upgrade process.
17:29, 2024/09/01
Cashless parking in Hanoi: Good model fuels smart transport
Hanoi’s leaders believe that all that's left to do is act with the ultimate goal of serving people from smart transportation, armed with the mindset and solutions of a new global vision and thinking.
22:36, 2024/08/26
Banking sector dominates Vietnam’s corporate bond market
The increase in bank bond issuance is largely driven by the need to comply with the State Bank of Vietnam’s capital adequacy requirements.
17:41, 2024/08/06
Prime Minister expects lending to grow by 15% this year
Key challenges for the remainder of the year include lowering interest rates, providing low-cost credit, and adopting cost-cutting technologies.
17:37, 2024/08/06
Vietnam, Singapore strengthen partnership in stock exchange operations
The two sides will focus on cooperation in digital transformation, cybersecurity, tax management, and market operations.