In the first eight months of 2026, Phu Tho’s total state budget revenue reached VND41.6 trillion (US$1.60 billion), up 12.8% year on year. Notably, domestic revenue reached VND37.4 trillion (US$1.44 billion), up 17.5%, with the foreign-invested and non-state industrial and commercial sectors continuing to post strong growth.
Phu Tho provincial leaders and delegates at the inauguration of Phase 1 infrastructure at Nam Binh Xuyen Green Park, developed by CNCTech in Phu Tho, August 18
Domestic Revenue Posts Strong Growth
In the first eight months of 2026, Phu Tho’s total state budget revenue reached VND41.6 trillion (US$1.60 billion), up 12.8%, while domestic revenue reached VND37.4 trillion (US$1.44 billion), up 17.5% from the same period in 2025. The difference in growth rates between the two indicators is noteworthy, showing that domestic revenue is growing faster than overall budget revenue.
Within this structure, foreign-invested enterprises contributed VND14.8 trillion (US$569.2 million) in the first eight months, up 63.7% year on year. This strong growth rate also made the sector a significant source of revenue within the province’s total domestic revenue.
Alongside the foreign-invested (FDI) sector, the non-state industrial and commercial sector contributed VND7.2 trillion (US$276.9 million), up 58.2%.
In terms of growth rates alone, the 63.7% increase in the FDI sector and the 58.2% increase in the non-state industrial and commercial sector were both considerably higher than the 17.5% increase in domestic revenue. This is worth considering when assessing Phu Tho’s budget revenue performance, as growth in these sectors has a direct impact on the amount of revenue generated by the economy.
From a budget management perspective, domestic revenue growing faster than total revenue provides an additional basis for Phu Tho to strengthen revenue sources linked to economic activity in the province. This is also an important factor in securing resources for economic and social development, development investment, and social welfare in 2026.
Administrative Reform to Sustain Revenue Growth
The budget revenue results also raise the question of how to maintain growth momentum in the remaining months of the year, as the ability to generate stable, long-term revenue depends considerably on the health of the production and business sector. The strong growth figures show that businesses have further potential that can be developed by creating favorable conditions for them to maintain and expand their operations.
Administrative reform can directly improve the business operating environment by reducing processing time, simplifying procedures, and improving access to public services. When time and procedural costs are reduced, businesses can focus more resources on production and business activities, thereby creating a foundation for expanding the revenue base.
Alongside administrative reform, supporting businesses and helping them resolve difficulties in their operations also contributes to revenue stability. Rather than focusing only on revenue collected at a particular point in time, creating conditions for businesses to maintain operations, improve efficiency, and expand their scale will help build a more sustainable revenue source for the budget.
This is particularly significant as the business sector is making a substantial contribution to Phu Tho’s domestic revenue. The eight-month results show that with the FDI sector growing by 63.7% and the non-state industrial and commercial sector by 58.2%, maintaining a favorable business environment will play an important role in sustaining revenue growth.
Conversely, increased budget revenue also gives the locality greater room to carry out development tasks. With total revenue of VND41.6 trillion (US$1.60 billion) after eight months, Phu Tho has additional resources for development investment, social welfare, and economic and social development tasks. The relationship between businesses and the budget is therefore two-way: a favorable environment helps businesses grow and generate revenue, while budget resources mobilized from the economy enable the locality to continue investing and developing.
Overall, the eight-month results for 2026 show that Phu Tho’s budget revenue is maintaining a positive trend. The figures show that revenue from production and business activities is making a significant contribution to the local budget, while giving Phu Tho room to further strengthen revenue sources by improving the investment environment, accelerating administrative reform, and supporting businesses.
According to Phu Tho provincial leaders, in the final months of the year, alongside efforts to fulfill budget revenue targets, creating conditions for businesses to operate stably, resolving difficulties in production and business activities, and reducing compliance costs will be important to maintaining revenue growth. This approach is also consistent with the goal of sustainable revenue growth, in which businesses are not only responsible for fulfilling budget obligations but also direct contributors to resources for local economic development.
By Le Hien, Vietnam Business Forum
