The budget deficit in the first half of the year hit 82.9 trillion VND (3.7 billion USD) due to rising recurrent expenditures and the repayment of debts, the General Statistics Office reported.
Hanoi (VNA) - The budget deficit in the first half of the year hit 82.9 trillion VND (3𝓰.7 billion USD) due to rising recurrent expenditures and the repayment of debts, the General Statistics Office reported.
Total budget revenue in the period reached 425.6 trillion VND, equal to 42 percent of estimates. Of the total, domestic revenues (excluding oil revenues) contributed 342.8 trillion VND, oil revenues 17.7 trillion VND and revenue from export-import 63 trillion VND.
Budget spending, meanwhile, hit 508.5 trillion VND. The country spent 68 trillion VND on the repayment of debt and provision of aid. It also disbursed 74.5 trillion VND for development investment and 363.4 trillion VND for recurrent expenditures, including administrative governance and national defence.
Recurrent expenditures accounted for 65 percent of the country’s total spending, up from 50 percent last year, according to the Ministry of Planning and Investment.
Expenditures for development investment, meanwhile, dropped to 17 percent from last year’s 30 percent.
The Government planned to borrow 452 trillion VND this year through G-bonds and official development assistance (ODA), of which 254 trillion VND will be used to offset the deficit.
Under the plan, estimates for debt payment this year are also expected to rise to 273 trillion VND from 148.3 trillion VND in 2015.
The Ministry of Finance forecast the deficit would reach 4.95 percent of the GDP this year; however, international economic organisations have forecast a much higher rate.
HSBC predicts the budget deficit will rise to 6.6 percent of the GDP in 2016, raising the ratio of public debt to GDP to a 64.5 percent threshold due to the high public debt ratio and falling oil price.
The growing debt problem is aggravated by slowing inflation (affecting the nominal GDP) and Vietnam’s currency devaluation (increasing the value of foreign debt).
The ratio of public debt to GDP increased from 59.6 percent in 2014 to 63.3 percent in 2015, and the World Bank forecast the ratio would rise to 63.8, 64.4 and 64.7 percent in 2016, 2017 and 2018, respectively.
Experts have recommended that the Government stabilise recurrent spending and adopt tough measures to curtail spending and increase collection.-VNA
The State budget value for 2015 will rise above expectations by 17.4 trillion VND (790.9 million USD) while the budget deficit is estimated at 31 trillion VND (1.4 billion USD).
Vietnam has set goals for GDP to grow by 6.5-7 percent and inflation to be kept at around 5-7 percent in the next five years, the Ministry of Planning and Investment said.
The total State budget revenue topped 160 trillion VND (7.27 billion USD) in the first two months of this year, up 2.4 percent annually, according to the Finance Ministry.
Health activists say special consumption taxes imposed on alcohol, beer and tobacco should be increased to improve community health and tackle the national budget deficit.
The Prime Minister has asked ministries and agencies to initiate drastic and effective measures to ensure a balance in the State budget amid decreasing revenues and rising expenditure.
Vietnamese Ambassador to the US Nguyen Quoc Dung reviewed key milestones in the bilateral relationship, underscoring the essential and sustained contribution by businesses from both countries, from the time before the normalisation of bilateral ties in 1995 until today, when the two sides are comprehensive stategic partners of each other.
According to targets adopted at the fifth Party Congress of the Management Board of the Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA) on June 22, the zones aim for average capital attraction of 8–10 million USD per hectare, with a 70% disbursement rate of registered capital achieved on schedule.
This year’s event attracted more than 350 entries from cities and provinces across the country, reflecting growing interest in and commitment to the Fourth Industrial Revolution.
The new Government decree also simplifies loan procedures while expanding credit incentives to include organic and circular agriculture, allowing them to access preferential terms similar to those of high-tech and value-chain based agricultural production.
Developed with state-of-the-art infrastructure, the Da Nang FTZ is designed to become a leading regional economic centre and a strategic growth pole in Vietnam’s new development landscape.
The Binh Duong Association of Supporting Industries (BASI) is expected to promote the usage of domestically manufactured components while supporting businesses in accessing international markets, strengthening linkages, and promoting deeper integration into global supply chains.
PwC Vietnam forecasts a vibrant M&A market in Vietnam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. Pharmaceutical companies, private hospitals, and specialised medical facilities, particularly in ophthalmology and oncology, are predicted to be key targets for M&A.
The central province of Quang Nam is set to become a hub for the medicinal plant industry, with Ngoc Linh ginseng designated as the core crop, under the Prime Minister's decision issued earlier this year.
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
Illustrative image. (Photo: baodatviet.vn)
