GDP expands 5% in 2023: Deputy PM

The government initially forecasted a 5% GDP growth in October, with Prime Minister Pham Minh Chinh informing the National Assembly about challenges facing the economy.

To support the economy, the government implemented several measures, including a 2% reduction in value-added tax and a 50% decrease in the environmental protection tax on gasoline and oil.

Additionally, there was a 10-50% reduction in 36 types of fees and charges for the last six months of the year, leading to a revenue shortfall of VND700 billion ($28.81 million).

In total, the amount of tax, fee, and land rent relief provided to businesses and individuals amounted to VND193.4 trillion.

State revenues surpassed estimates by 4.5%, reaching VND1.69 quadrillion as of Dec. 25, buoyed by a 44.6% increase in crude oil revenue due to this year’s high oil prices.

However, a downturn in trade tax revenues led to a 4.2% year-on-year decrease in total state revenues.

The state budget deficit is projected at 4% of GDP for the year, slightly below the Ministry of Finance’s forecast of 4.42%.

The government issued bonds totaling VND296.7 trillion, which is 25.8% below the planned target.

Since 2022, loans have been subject to higher interest rates, a change reflecting lenders’ policies in response to Vietnam’s classification as a lower-middle-income country.

The government has fully repaid state loans on schedule. Public debt is expected to reach 37% of GDP by year’s end, with government debt at 34%, both figures remaining below the caps set by the National Assembly.

For the upcoming year, the government has directed the Ministry of Finance to develop new legislation aimed at increasing revenue streams, including implementing taxes on e-commerce activities.

The government acknowledges the continued necessity of incentive policies to bolster businesses and support the population.