Economy maintains recovery and growth momentum, revenue in 2022 exceeds VND1.8 million billion

	Mr. Phan Huu Thang, President of the International Investment Research Institute (ISC):Encourage responsible business ventures
	National action plan to be built to implement circular economy
	Mr. Phan Huu Thang, President of the International Investment Research Institute (ISC): Encourage responsible business ventures

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10 revenues exceeded estimate

Accordingly, the total state budget revenue in 2022 reached VND1,803.6 trillion, exceeding 27.8% of the estimate, up 15% year-on-year.

Of which, domestic revenue exceeded 21.8% of the estimate, up 9.9%; revenue from crude oil exceeded 176% of the estimate (the average oil price was about US$105 per barrel, up 45 USD/barrel compared to the estimate), up 74.3%; revenue from import and export activities exceeded 43.9% of the estimate, up 32.7% over the same period in 2021.

According to the Ministry of Finance, the above results are mainly due to the positive economic recovery and growth (GDP rose by 8.02%); total retail sales are rising by 19.8%; index of industrial production (IIP) by 7.8%; exports rising by 10.6%; imports rising by 8.4%, and trade surplus rising by US$11.2 billion.

In addition, the high price of oil and several commodities and input materials contributed to the increase in revenue from crude oil and import and export activities.

Some revenues exceeded the estimate, such as personal income tax exceeding 38.5%, mainly thanks to the stock market, strong growth in real estate in 2021, tax finalization in 2021 from the transfer of the real estate, securities made in the first quarter of 2022; revenues from houses and land exceeding 54.5% because the real estate market maintained its growth momentum from the end of 2021, localities have stepped up the implementation of site clearance, land auctions, urged payment of land use fees and settlement of outstanding debts of projects that have received a land allotment.

In addition, capital collection, dividends, profit, after-tax profit, and the difference in revenue and expenditure of the State Bank rose 17%, mainly due to the recovery of production and business situation of enterprises in 2022 and dividend profit sharing in 2020 made in 2022 of Vietcombank and VietinBank of VND5.8 trillion, contributing to increasing budget revenue for this sector.

Further, Tax and Customs authorities strengthened tax management, built a big database from e-invoices to track fraud, and reviewed potential revenues but still failed to collect to include managing, preventing revenue loss, and increasing revenue from e-commerce and from real estate transfer activities.

So far, 42 foreign suppliers have made tax declarations and payments of VND3.44 trillion. As a result, it is estimated that the country will collect VND41 trillion from real estate transfers for the whole year, up about 97% compared to 2021 (more than VND20 trillion), helping increase budget revenue in the year.

As a result, 10 revenues exceeded the estimate, including revenue from houses and land exceeding 54.5%; revenue from lottery activities 18.2% and direct revenues from production and business activities of the state sector 14.3% of the estimate, up 7.4% year-on-year; of the FDI sector 17.6% of the estimate, up 11.5% year-on-year; revenue from the non-state economic sector 21.5% estimates, an increase of 5.9 % year-on-year.

The other two revenues failing to meet the estimate were the revenue from environmental protection tax (reaching 72% of the estimate, equaling 73.3% over the same period) due to the reduction of environmental protection tax rates for gasoline, oil, grease according to the Resolutions No. 18/2022/UBTVQH15 and No. 20/2022/UBTVQH15; and the reduction in the State budget from equitization and capital divestment in enterprises due to the slow equitization and capital divestment progress.

Budget spending recorded VND 1.56 million billion

Regarding budget expenditure, the country spent VND1,562.3 trillion in 12 months, or 87.5% of the estimate, up 8.1% year-on-year, reported by the Ministry of Finance.

Development investment expenditure reached 82.8% of the estimate decided by the National Assembly and 75.1% of the plan assigned by the Prime Minister; interest payment reached 94% of the estimate; and recurrent expenditure reached 92.4% of the estimate.

The 12-month state budget spending tasks have complied with the estimate and met the needs of socio-economic development, national defense, security, state management and payment of due debts, overcoming of consequences of natural disasters, epidemics and social welfare, payment for beneficiaries of salaries, pensions and social allowances from the state budget.

In addition, several spending tasks will be finished at the end of January 31, 2023, or transferred to 2023 following the laws on State Budget and Public Investment regulations.

The central budget spent from budget reserve about VND6.33 trillion, of which VND2.28 was funded for ministries and central agencies and more than VND4 trillion supported to localities for pandemic prevention and Covid-19 pandemic-hit people; and providing plant varieties, livestock and aquatic breeds to restore production in areas damaged by natural disasters and epidemics.

In addition, temporarily granting more than VND4.36 trillion to 32 localities to implement the policy of housing rental support for employees according to Decision 08/2022/QD-TTg dated March 28, 2022, of the Prime Minister.

In addition, the country provided 30,370 tons of rice for the national reserve to overcome the consequences of natural disasters and the pandemic and hunger relief for the people during the Lunar New Year and the early year 2023.

As for development investment spending, the disbursement in 12 months is estimated at 75.1% of the plan assigned by the Prime Minister. On the other hand, the disbursement of foreign capital only reached 22.65% of the plan.

12 ministries, central agencies and 17 local agencies recorded a disbursement rate of over 80% of the plan, while there are still 17 ministries, central agencies and seven localities with a disbursement rate below 50% of the plan.

The Ministry of Finance said that in 2022, the balance of the central and local budgets will be ensured. In 2022, VND214.7 trillion of Government bonds with an average term of 12.67 years and an average interest rate of 3.48%/year were issued.

Economic growth seen from two major economic "locomotives"

By the end of 2022, the outstanding debt of the country is estimated at 38% of GDP, the outstanding debt of the Government is estimated at 34.7% of GDP, the foreign loans are estimated at 36.8% of GDP, Government’s debt liability is estimated at 16.3% of total state budget revenue, within the scope allowed by the National Assembly.