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Vietnam Today

Crude oil revenue falls

Released at: 15:24, 06/03/2015

Crude oil revenue falls

MoF releases State budget figures.

by Hoai An

According to a recent report from the Ministry of Finance (MoF) on the implementation of financial tasks and the State budget position in February, total revenue in the first two months reached VND151.8 trillion ($7.2 billion), up 17.3 per cent over the same period last year. Oil revenues, however, fell 20.2 per cent to stand at VND11.6 trillion ($500 million).

By the middle of February the decline in crude oil prices on world markets had basically bottomed out and stabilized. Due to delays in payments, the price of crude oil in Vietnam in the first two months averaged $57.50 per barrel, $42.50 lower than estimates. Total production for the first two months was estimated at 2.43 million tonnes, 16.5 per cent less than planned.

Revenues from crude oil fell but other domestic revenues and income from operations increased. Domestic revenue increased 25 per cent due to the recovery of the economy and as a consequence of business improvements among enterprises, especially banks and large companies such as Viettel, MobiFone, Vietcombank, and BIDV.

According to the MoF, cumulative domestic revenue reached VND117.5 trillion ($5.5 billion) for January and February, mostly from production activities and business. Revenues at SOEs increased 29.3 per cent over the same period last year and revenue from foreign investment grew 16.1 per cent. Revenue from private sector industry and trade rose 20.1 per cent and personal income tax payments increased 9.6 per cent.

The budget deficit for the first two months was estimated at VND20.3 trillion ($9.7 billion), accounting for 9 per cent of the annual estimate. On February 26, VND40.3 trillion ($1.9 billion) in government bonds were issued to bridge the budget deficit and for use in investment and development activities.

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