Vietnam's Coffer Revenue to Reduce by US$781Mln in Remaining Months

The government of Vietnam will have to sacrifice its coffer revenue of about VND12.5 trillion (US$781.25 million) to rein in the inflation to stabilize its marco economy this year, Tien Phong Online reported.

 

The country’s state budget revenue will be witnessed after the Finance Ministry announced to axe half of imports duties of 18 categories of goods recently and may reduce that of other commodities.

 

However, Vietnam will be compensated with surplus payment balance and remittance from overseas Vietnamese and laborers.

 

Nguyen Dong Tien, vice governor of State Bank of Vietnam, the central bank said that Vietnam’s surplus payment balance reached US$6 billion in Jan-Jun, which helped double its foreign currencies reserve.

 

It is not easy to calculate the reduction of the state budget, however, if the imports duties are of 18 categories cut, the state coffer will be reduced by VND2.5-3 trillion, and VND12.5 trillion in the remaining months of this year. For forex earners with great exports revenue, the loss will be much bigger.

 

Domestic economists expressed their doubt about the Finance Ministry’s cutting imports tariffs because the Vietnam dong against US dollar ratio in the first six months of this year still kept soaring to VND16,170 from VND15,988. (VNE, vietstock.com.vn)