Supporting businesses while maintaining strong revenue growth

State budget management in the first six months of 2026 took place amid continued global uncertainty. Geopolitical tensions, volatile energy prices, and changes in the trade policies of major economies continued to affect production and business activities. Domestically, although macroeconomic conditions remained broadly stable, many businesses continued to face difficulties caused by weak demand, declining export orders, and rising production costs.

In this context, fiscal policy was required not only to secure state budget revenue but also to help businesses recover and expand their operations. This objective has remained a key priority in the Ministry of Finance's budget management since the beginning of the year.

One of the principal measures has been the continued implementation of tax and fee relief policies. According to the Ministry of Finance, the total value of the support measures introduced amounts to approximately 316.8 trillion VND (12.1 billion USD). Of this figure, tax and fee exemptions and reductions implemented during the first half of the year account for an estimated around 89 trillion VND (3.4 billion USD).

The support package includes a reduction in value-added tax (VAT), lower environmental protection tax on petrol and oil, exemptions from agricultural land-use tax, the abolition of business licence fees, reduced import and export duties on selected products, and extensions of payment deadlines for several taxes and land rental fees.

While these measures inevitably reduce budget revenue in the short term, their broader objective is to provide businesses with greater financial capacity to maintain operations, expand investment, and create jobs. As production and business activities recover, the state budget is expected to benefit from a broader and more sustainable revenue base.

Budget revenue figures for the first six months suggest that this approach has proved effective. According to the Ministry of Finance, total state budget revenue is estimated at approximately 1.565 quadrillion VND (59.8 billion USD), equivalent to 61.9% of the annual estimate and up 17.2% compared with the same period in 2025.

Domestic revenue reached around 1.351 quadrillion VND (51.6 billion USD), fulfilling 61.4% of the annual target and marking a year-on-year increase of 16.4%. Excluding one-off revenue sources such as land-use fees, lottery proceeds, dividends and post-tax profits from state-owned enterprises, as well as recovered state investment capital, underlying domestic revenue rose by an impressive 26.7%.

Revenue from the business sector also recorded robust growth. Receipts from state-owned enterprises, foreign-invested enterprises and the domestic private sector totalled approximately 712.2 trillion VND (27.2 billion USD), up 38.4% year on year and reaching 69.9% of the annual estimate. Revenue from private businesses alone increased 47.1%, reflecting the continued recovery of the domestic corporate sector.

Alongside support measures, the Ministry of Finance continued to strengthen revenue administration. The tax authorities expanded the use of electronic invoices while tightening oversight of e-commerce, digital platform businesses, and cross-border transactions. Meanwhile, the customs sector continued to modernise its operations through the development of digital customs to facilitate import and export activities.

Efforts to combat revenue losses, transfer pricing and tax arrears were also intensified. During the first half of the year, tax authorities conducted around 21,600 inspections, recommending financial recoveries worth approximately 30.3 trillion VND (1.16 billion USD) and collecting about 41.9 trillion VND (1.6 billion USD) in outstanding tax debts. Customs authorities carried out 502 post-clearance inspections and handled nearly 11,420 customs violations.

These results demonstrate that revenue growth has been driven not only by economic recovery but also by more effective tax administration, tighter enforcement, and the expansion of the tax base into emerging sectors.

Restructuring public expenditure to improve efficiency

Alongside revenue management, state budget expenditure during the first half of 2026 continued to be administered in a prudent and cost-effective manner.

Budgetary demands this year have been particularly significant, as the government has had to finance development investment while ensuring sufficient resources for national defence, public security, social welfare, salary reform, institutional restructuring, and the implementation of the two-tier local government model.

To meet these priorities, the Ministry of Finance continued reviewing and reprioritising expenditure, cutting non-essential spending while directing more resources towards key national priorities.

This approach is reflected in Government Resolution No. 135/NQ-CP on budget expenditure savings in 2026. Ministries, agencies, and local authorities have been required to reduce recurrent expenditure by 10% to create resources for salary reform, while aiming to save an additional more than 5% of recurrent spending and 5% of planned development investment to finance major infrastructure projects.

According to the Ministry of Finance, total state budget expenditure in the first six months of 2026 is estimated at 1.098 quadrillion VND (41.9 billion USD), equivalent to 34.8% of the annual estimate.

Development investment reached approximately 317.7 trillion VND (12.1 billion USD), representing 28.4% of the allocation approved by the National Assembly. Public investment disbursement reached around 30.9% of the annual plan assigned by the prime minister. Although this remained below expectations, the pace of disbursement improved noticeably in June compared with the earlier months of the year.

At the same time, the state budget has continued to provide sufficient funding for education, healthcare, national defence, public security, salary payments, pensions, social assistance programmes, and the operation of government agencies following administrative restructuring.

The central budget also allocated approximately 24.8 trillion VND (947.3 million USD) from contingency reserves to respond to urgent needs, including disaster recovery, disease prevention and control, national defence and security requirements, and other unforeseen expenditures in accordance with regulations.

Beyond revenue and expenditure management, the Ministry of Finance continued to keep the budget deficit and public debt within the limits approved by the National Assembly. Government bond issuance was carried out in line with financing needs and debt repayment plans. As of the end of June, the government has issued approximately 182.6 trillion VND (7.0 billion USD) in bonds, with an average maturity of 9.36 years and an average annual interest rate of 4.11%.

Overall, state budget management during the first half of 2026 remained focused on supporting economic growth while preserving national fiscal security. Through measures ranging from tax relief and stronger revenue administration to more efficient public spending and prioritised investment, public financial resources have been deployed more effectively to underpin sustainable economic development.

In the second half of the year, as business support measures continue to be implemented and public investment projects enter a phase of accelerated disbursement, effective budget management will remain crucial to maintaining macroeconomic stability, mobilising resources for growth, and achieving Viet Nam's socio-economic development targets for 2026.

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