On October 22, 2024, during the 8th session of the 15th National Assembly, the Ministry of Finance (MoF) presented a report on the implementation progress of the State budget in 2024 and the State budget allocation plan for 2025. Some notable content is as follows:

- 2024 State budget revenue is expected to exceed 2024’s plan by 10.1%: In 9M 2024, State revenue completed 85.1% of 2024 plan  (see more in our Macro Update published on October 10, 2024). State budget revenue is now expected to reach VND1,873.3tn (USD74.9bn; +6.8% YoY) and exceed the annual plan by 10.1% due to higher-than-expected revenue from all key components, including domestic revenue (expected to exceed the target by 8.9%), revenue from crude oil (+28.9%), and revenue from export & import activities (+15.3%). Better-than-expected State revenue was attributed to: (1) the recent strong recovery of the economy; (2) improving risk management and tax inspections; and (3) digital transformation, modernizing tax collection and expanding the implementation of electronic invoices, especially in petroleum retail sales.

- State spending for investment & development could accelerate to reach 2024’s target: State expenditures are now estimated to reach VND2,281.7tn (USD91.3bn; +8.1% YoY) in 2024 – exceeding the annual plan by 7.7%. Despite public investment disbursement slowing in recent months, completing 47.3% of the annual plan compared to 50% in 9M 2023, the MoF estimates that State spending on investment and development could reach approximately VND684.4tn (USD27.4bn; -5.6% YoY). This would fulfill 101% of the National Assembly’s annual plan and about 95% of the target set by the Prime Minister.

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