State budget revenue up 10.2% in Q1

State budget revenue up 10.2% in Q1

Global geopolitical tensions have also had a notable impact. The conflict in the Middle East since late February has disrupted global energy supply, driving up fuel prices, increasing production costs, and affecting business performance.

A factory of Pou Phong Vietnam in Đồng Nai Province. — VNA/VNS Photo

Total state budget revenue in the first quarter of 2026 is estimated at VNĐ820 trillion (US$31.1 billion), equivalent to 32.4 per cent of the annual target and up 10.2 per cent year-on-year, the Ministry of Finance reported.

Domestic revenue, estimated at VNĐ738.6 trillion, represented 33.6 per cent of this year's target and rose 12.2 per cent compared to the same period in 2025, which saw growth of 37 per cent.

According to the ministry, the slower growth mainly reflects internal challenges in the economy. Domestic consumption in the first two months of 2026 posted the weakest increase in four years. Total retail sales of goods and consumer service revenue picked up by an estimated 7.9 per cent, lower than during 2023-25.

Many businesses, particularly small ones, continued to face difficulties in cash flow and access to capital for production and business activities.

Global geopolitical tensions have also had a notable impact. The conflict in the Middle East since late February has disrupted global energy supply, driving up fuel prices, increasing production costs, and affecting business performance.

In response, the Politburo, the Government, and the Prime Minister have directed the implementation of a range of fiscal support measures, including cutting the most-favoured-nation (MFN) import tariff, environmental protection tax, value-added tax, excise tax, and some fees. These policies have helped stabilise the market and support businesses although they are expected to reduce budget revenue in the coming period, the ministry said.

Over the last quarter, total tax, fee, and charge exemptions and reductions aimed to assist businesses and citizens were estimated at VNĐ43.6 trillion.

Meanwhile, total state budget expenditure stood at around VNĐ529.8 trillion, equivalent to 16.8 per cent of the annual plan and up 23.1 per cent year-on-year, statistics show.

In the coming period, the finance sector will continue strengthening revenue management, combating revenue loss, and expanding the tax base.

The application of digital technologies to tax administration, along with tighter control of e-commerce and digital economy, is seen as a crucial solution to ensuring accurate and sufficient state budget collection while enhancing transparency and promoting a fair business environment, according to the Ministry of Finance.

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