Flexible fiscal policy helps drive economic growth

Flexible fiscal policy helps drive economic growth

Tax and fee relief measures have had a noticeable impact on businesses, particularly amid pressures from input costs, capital, markets, competition and the need to transform growth models.

An automobile assembly line of THACO Truong Hai Group. State budget revenue in the first eight months of 2026 was estimated at VNĐ2.02 quadrillion (US$77.7 billion), equivalent to 80 per cent of the annual estimate and up 16 per cent year-on-year. — VNA/VNS Photo Hải Âu

Việt Nam’s fiscal policy has been implemented in a targeted expansionary manner since early 2026, helping maintain macroeconomic stability and supporting the country’s goal of achieving double-digit economic growth.

According to the Ministry of Finance, State budget revenue in the first eight months of 2026 was estimated at VNĐ2.02 quadrillion (US$77.7 billion), equivalent to 80 per cent of the annual estimate and up 16 per cent year-on-year. Domestic revenue reached VNĐ1.75 quadrillion, accounting for 86.6 per cent of total revenue and rising 16.6 per cent. Meanwhile, crude oil revenue stood at VNĐ43.6 trillion, exceeding the annual estimate by 1.5 per cent, while revenue from import-export activities reached VNĐ223.9 trillion, up 7.9 per cent.

The stronger revenue base has provided room for State budget spending and continued fiscal support. State budget expenditure in the period was estimated at over VNĐ1.6 quadrillion, equivalent to 50.0 per cent of the  annual estimate and up 13.3 per cent year-on-year. Tax, fee and land-rent exemptions, reductions and extensions were estimated to amount to around VNĐ209 trillion.

Mạc Quốc Anh, Vice Chairman and Secretary General of the Hanoi Association of Small- and Medium-Sized Enterprises, said tax and fee relief measures have had a noticeable impact on businesses, particularly amid pressures from input costs, capital, markets, competition and the need to transform their growth models.

He noted that fiscal policy has shifted from temporary support to larger-scale, sustained and relatively comprehensive measures. The continued reduction of value-added tax (VAT) from 10 per cent to 8 per cent for many categories of goods and services through the end of 2026, for example, has helped reduce costs, stimulate consumption and support aggregate demand.

Under the National Assembly's Resolution No. 43/2026/QH16, businesses with annual revenue of no more than VNĐ10 billion are eligible for a 30 per cent reduction in corporate income tax payable for the 2026 and 2027 tax periods, while business individual owners meeting the corresponding revenue threshold are entitled to a 30 per cent reduction in personal income tax.

Nguyễn Văn Được, General Director of Trọng Tín Accounting and Tax Consulting Co., Ltd., said fiscal policy has shifted towards more targeted measures designed not only to ease immediate difficulties but also to create room for investment, production expansion and stronger competitiveness.

From a business perspective, An Phát JSC Director Nguyễn Văn Diệu said tax and fee relief, together with stronger public investment, could improve firms’ resilience, stimulate aggregate demand and expand business opportunities. He, however, stressed that policy effectiveness also depends on transparency, stability and accessibility, calling for simpler procedures and timely, comprehensive information on support programmes. 

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