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.

Container trucks seen at Tan Vu Terminal in Hai Phong City, northern Vietnam.

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.

Vietnam’s GDP forecast to rank second in ASEAN

Vietnam’s GDP is projected to grow 5.8% this year, sharing the second position with Cambodia in the region, only after the Philippines, according to the International Monetary Fund (IMF).

Digital economy contributes 15% to GDP in H1

Vietnam’s digital economy has played an important role in the country’s socio-economic development in recent times, and accounted for nearly 15% of GDP in the first half of this year, according to the Ministry of Information and Communications.

Digital economy contributes 14.26% to GDP in 2022

The contribution of the digital economy to national GDP in 2022 accounted for about 14.26% of the total, with 7.18% contributed by the ICT digital economy.

Vietnam’s GDP expands by 8,02% in 2022

Vietnam’s GDP growth reaches 8.02% this year, a record high in the 2011-2022 period as the economy is recovering strongly, General Director of the General Statistics Office (GSO) Nguyen Thi Huong told a press conference in Hanoi on December 29.

Digital economy hoped to make up 20% of Vietnam’s GDP by 2025

Vietnam expects its digital economy to account for 20 percent of GDP by 2025.

Source: VnExpress