Economic recovery drives up state budget collection

Jun 02, 2021 / 11:03 AM

High budget revenue in the five-month period was thanks to economic recovery trend that has stated since late 2020.

Despite negative impacts of the Covid-19 pandemic on economic activities and public life, Vietnam’s state budget collection in May surged by 20% year-on-year to VND73 trillion (US$3.17 billion), according to the General Department of Taxation (GDT).

Strong economic performance helps boost state budget revenue. File photo

Upon breaking down, domestic revenue made up a lion’s share of VND69.5 trillion (US$3.02 billion), up 16.7% year-on-year, and that of crude oil stood at VND3.5 trillion (US$152.36 million).

“Such figures remain a positive note if considering the fact that the state had provided support to enterprises and business households in the form of tax and land rental fees deferral worth VND10.5 trillion (US$457 million) during the month,” stated the GDT.

Overall, state budget revenue in the January – May period rose by 12% year-on-year to VND562.36 trillion (US$24.47 billion), more than half of the year’s target set by the National Assembly.

The GDT attributed the high budget revenue to the economic recovery trend that has started since late 2020, especially in the fields of banking, securities, real estate, and automobile assembling.

The strong growth of the stock market in recent months, in particular, has been a major source of income for the state budget with daily market liquidity at VND22 trillion (US$958 million) per session in the past two months.

Data from the Vietnam Securities Depository noted new accounts opened by investors jumped by 90% year-on-year in the four-month period to nearly 370,000.

In total, Vietnam currently has 3.12 million individual securities account and 15,800 from organizations.

Credit supply for the stock market currently accounts for 0.6% of total outstanding loans, or VND450 trillion (US$19.58 billion).

At the Hanoi Stock Exchange (HNX), the number of shares that changed hands in the first four months was estimated at 12 billion worth VND193 trillion (US$8.4 billion), more than triple in terms of quantity and a 4.7-fold increase in value year-on-year.

In the January - May period, state budget collection in Hanoi rose by 6.5% year-on-year to VND110.6 trillion (US$4.81 billion), or 47% of the year’s estimate. Meanwhile, the city spent over VND23.7 trillion (US$1 billion) during the period.