Contrary to projection of a deficit, Vietnam’s state budget landscape in 2022 has witnessed a major surplus, with enterprises in general gradually weathering difficulties to ensure their performance.

Total State budget collection was estimated at over 1,803 trillion VND (76.6 billion USD) in 2022, equivalent to 127.8% of the estimate, up 15% year on year, reported the Ministry of Finance (MoF) on January 3.

Vietnam’s state budget performance is expected to see a deficit of billions of US dollars this year, with such a landscape fixed for next year – with warnings sounded about punishing violations in budget management and usage.

From now to 2025, about 400 cadres will be sent to training courses abroad each year. From 2026 to 2030, the figure will be 500.

Vietnam ranks 68th out of 120 countries globally in the Open Budget Survey (OBS) 2021 of the International Budget Partnership (IBP), up 9 notches compared to 2019 and a leap of 23 notches against 2017.

The Vietnamese Government will implement solutions to ensure the efficient management and use of the funds.

The State budget overspending in 2020 stood at over 216.4 trillion VND (9.3 million USD), equivalent to 3.44 percent of GDP, statistics showed.

Despite impairments in the economy and business revenues, Vietnam has decided to increase its budget deficit this year and next year in order to ensure state budget spending for the country.

The state budget revenue has increased sharply, even as people and businesses remain depressed due to the ongoing Covid-19 pandemic. 

Vietnam may not be able to increase its budget deficit next year in order to ensure state budget spending, with the economy still sabotaged and business revenues still dented.

State budget allocation should prioritise poor localities with a high number of migrant workers, said Dr Nguyen Duc Thanh, director of the Vietnam Centre for Economic and Strategic Studies (VESS) at a seminar.

Finance Minister Ho Duc Phoc has affirmed that the State budget is enough for expenditures planned by the National Assembly (NA) and the Prime Minister.

The Ministry of Finance (MoF) is concerned the COVID-19 pandemic would continue to affect State budget revenue in the coming months.

The total state’s spending in 2021-2025 is predicted to reach VND10.26 quadrillion, of which 28 percent would be spent for investment and development.

According to the Government's report, Vietnam’s GDP in 2020 reached $271.2 billion, 1.4 times higher than that of 2015. GDP per capita in 2020 was $2,779, 1.3 times higher than 2015.

The registration fees collected for the state budget increased from VND11,816 billion in 2012 to VND40,194 billion in 2019, up by 240% or VND28,378 billion.

The Prime Minister has decided to allocate over 1.55 trillion VND (nearly 67.5 million USD) from the State budget this year to the Ministry of National Defence to combat COVID-19.

According to the public investment plan in the period 2021-2025, the total state budget capital allocated for this period is VND2.87 quadrillion, not VND2,750 trillion as being reported to the 10th session of the 14th National Assembly.

Vietnam posted a State budget surplus in the first half of 2021 as revenue outpaced spending despite Covid-19 raging in many parts of the nation, according to the Ministry of Finance.