return icon

Deputy Finance Minister explains state budget shortage

 VietNamNet Bridge – The Ministry of Finance on Monday held a press conference to explain causes on state budget balance that the public currently raise concerns about.

VietNamNet Bridge – The Ministry of Finance on Monday (Oct 26) held a press conference to explain causes on state budget balance that the public currently raise concerns about.

Deputy Minister Do Hoang Anh Tuan said that the ministry would focus on collecting tax debts, fighting against transfer pricing and inspecting businesses over their financial obligations, aiming to deal with difficulties in budget revenue next year.

Anti-transfer pricing measures are an important way to prevent tax collection failure, he said. The ministry has established five units in charge of this work and expected to build a database of 11,500 foreign direct investment enterprises in Vietnam by the end of this year.

Explaining what causes budget shortage, Mr. Anh Tuan said that the ministry had put in an estimate for crude oil price at US$100 a barrel, but in reality crude oil is sold at US$ 54-55 a barrel, resulting in tax bill reduction.

In addition, Vietnam has conducted economic integration commitments in the ASEAN region to cut taxes. For instance, import tariff on mazut and diesel has been lowered to 10 percent this year and will continue sliding to 0 and 5 percent respectively early next year. It is double or triple for products outside ASEAN.

Meanwhile, tax debts reach VND76 trillion (US$3.41 billion) now, he said.

Besides uncollectable amount due to irresistible reasons, VND34 trillion is collectable from enterprises who are affordable for but have yet to make the payment, he said, adding that if 50 percent of this source is claimed, the budget would have VND17 trillion.

Despite of the central government collection failure, according to the Government’s report to the National Assembly, the state budget revenue will exceed predicted number, to reach VND17.4 trillion (US$780.06 billion) this year, the deputy minister said.

Of these, local budget revenue has been on the rise because good economic growth, expected at 6.5 percent for the whole year, and low consumer price index, about 1.5-2 percent, have facilitated enterprises’ trading activities and business income tax payment is predicted higher than last year.

The Government has proposed the National Assembly to permit the use of VND10 trillion (US$448.31 million) from selling state capital at businesses to make up the budget deficit. On the other hand, the Prime Minister has instructed the Finance Ministry to collect taxes fully and rightly to balance budget and gradually reduce the use of that fund.

The second solution is inspecting 506,000 businesses that have made tax declaration and payment themselves.

According to the Tax Management Law and requirements by the National Assembly’s supervisory delegation, tax agencies must inspect 15-20 percent of these firms.

Inspections in September found that an addition of VND8 trillion should have been submitted to the state budget, VND5 trillion of this has been claimed so far and collection of the remaining fund is possible.

Moreover, Vietnam will concentrate on recovering VND86 million that it should be enjoyed in the Vietnam-Russia Oil and Gas Joint Venture.

Answering reporters’ question on the issue of US$3 billion international bonds, Mr. Tuan said that it aims to restructure short-term debts. Therefore, total debts will not change but creditors, interest rate and payment time.

The use of the fund from the bond issue will depend on demand not be at the same moment because the US$3 billion is the ceiling level for the phase of 2015-2016, he added.    



Ngoc Linh ginseng helps Central Highlands locals out of poverty

Growers in the Central Highlands provinces dreamed of escaping poverty when they planted Ngoc Linh ginseng which has made an economic contribution to improving local farmers’ living conditions.

Soc Trang’s Khmer pagoda features giant Buddha statue

With the long-standing bonds of the Kinh, Khmer, and Hoa ethnic groups, Soc Trang boasts a special cultural identity that makes it an outstanding spiritual destination for tourists and Buddhist followers from far and wide.

Smart-homes getting cheaper in Vietnam

In Vietnam, a smart-home installation package costs VND14-25 million.

Vietnamese nationals account largest proportion of Japan’s foreign worker population

Vietnamese nationals account for 25.4% of the total 1.82 million foreign workers who were working in Japan as of the end of October last year, according to the Japanese Ministry of Health, Labour and Welfare (MHLW).

Mekong Delta develops more OCOP products

The Cuu Long (Mekong) Delta’s 12 provinces and the city of Can Tho are developing more products under the country’s “One Commune-One Product” programme.

Major Vietnamese paintings worth millions of dollars at global auctions

2022 represented a successful year for the Vietnamese painting market as three more pieces were auctioned at more than US$1 million each, bringing the total number of valuable paintings to 19. Let’s take a closer look at some of them.

Vietnamese American singer brings Tet Holiday joy to disadvantaged children

In hope to bring the children who lost their parents because of Covid-19 a warm spring holiday, Vietnamese American singer Ha Phuong spent a day to enjoy Tet with them.

How will the economy fare in 2023?

Vietnam’s economy had a prosperous year in 2022 with GDP growth rate of 8.02 percent, a one-decade high.

Female Vietnamese badminton star Thuy Linh placed 50th in world rankings

Vietnamese badminton star Nguyen Thuy Linh has risen to 50th position in the world’s latest singles women rankings, according to the Badminton World Federation (BWF).

Phin Ho ‘shan tuyet’ tea –specialty of Ha Giang

Apart from stilt houses and seemingly endless terraced paddy fields, “shan tuyet” tea, a famous specialty of Phin Ho village, is one of the special things visitors cannot forget once setting foot in Tay Con Linh Mountain in Ha Giang.

Discovering art of making vegetarian dishes in Tay Ninh

Religions and beliefs have made considerable contributions to the culinary culture of Tay Ninh.

Hoi An, HCM City among world's top 25 trending destinations in 2023: TripAdvisor

Germany’s famous travel site has run an article highlighting the world’s top 25 trending destinations for 2023, including Vietnam’s Hoi An ancient city and Ho Chi Minh City, recently voted by readers of TripAdvisor.

Make-in-Vietnam sleeping machine developed by professor

FRENZ Brainband helps users have faster, tighter and deeper sleep. It can also be used for relaxing and enhancing concentration when working.

Paris Agreement: Lessons on independence, self-reliance, int’l solidarity

The signing of the Paris Agreement on ending the war and restoring peace in Vietnam on January 27, 1973, was a resounding victory of Vietnam’s revolutionary diplomacy in the Ho Chi Minh era.

PM: Lunar New Year comes with new energy

Prime Minister Pham Minh Chinh chaired a meeting of permanent Cabinet members in Hanoi on January 27, speaking of new energy of the nation following Tet (Lunar New Year), the biggest festival in Vietnam.