Vietnam’s budget revenue in the first ten months of 2022 was estimated at VND1,460 trillion (US$58.7 billion), representing an increase of 16.2% year on year and surpassing the year’s target by 3.7%, according to the Ministry of Finance (MoF).

A client pays tax at a tax office in Hanoi. File photo

The MoF attributed the solid performance to Vietnam’s speedy economic recovery, which translated into a high GDP growth of 8.83% during the nine months, the highest since 2011.

Meanwhile, high petrol prices in the global market have also contributed to an upbeat collection, with revenue from crude oil exports during the 10-month at VND65.5 trillion ($2.63 billion), up 95% year on year and exceeding the year’s estimate by 32.4%.

The ministry noted that efforts to tighten tax management and e-invoices have been essential in preventing tax evasion and ensuring greater efficiency in tax collection from e-commerce activities and real estate transactions.

While the budget revenue remains positive, the MoF noted a declining trend in domestic revenue.

According to the MoF, the average domestic revenue per month in the first five months of 2022 reached VND130.8 trillion ($5.25 billion) but dropped to nearly VND100 trillion ($4 billion) in the subsequent six months, to VND71.2 trillion ($2.86 billion) in the ninth months and VND70 trillion ($2.8 billion) in the tenth months.

In contrast, state budget spending in the ten months was VND1,220 trillion ($49 billion), 68.3% of the forecast. Of the total, capital expenditure was VND297.8 trillion ($12 billion), interest payment VND78.3 trillion ($3.1 billion), and recurrent expenditure VND841.3 trillion ($33.8 billion).

This resulted in a budget surplus of VND240 trillion ($9.64 billion) for January-October.

Hanoi is among the top five budget contributors

Total budget revenue in Hanoi in the first ten months of 2022 stood at VND294.8 trillion ($11.85 billion), equivalent to 94.6% of the estimate and up 12% year on year.

This made the city the second largest contributor to the state budget, behind only Ho Chi Minh City, with VND392.7 trillion ($15.6 billion).

The other three provinces/cities in the top 5 included Ba Ria – Vung Tau (VND94 trillion or $3.7 billion), Haiphong (VND87 trillion or $3.5 billion), and Binh Duong (VND55.2 trillion or $2.2 billion).

According to the Hanoi Department of Statistics, the private sector led the components in terms of tax collection, with VND62.1 trillion ($2.5 billion), followed by the state sector, with VND51.8 trillion ($2 billion), and the foreign-invested sector, with VND19.8 trillion ($796 million).

In a recent meeting, the Vice Chairman of the Hanoi People’s Committee, Ha Minh Hai, said the city aims to exceed the budget revenue target for 2022 by 5%.