Provincial state budget revenue has increased during the first half of 2026, yet remains below the planned growth scenario, placing pressure on fiscal management in the months ahead.

Total state budget revenue in the first half reached 8,933 billion VND, up 3.05% year-on-year. This represented 52.19% of the estimate assigned by the central government, 49.36% of the provincial estimate, and 44.94% of the full-year revenue scenario.

Notably, revenue from production along with business activities increased by 18.33%. Several revenue sources recorded robust growth, including revenue from the non-state economic sector, up 47.95%; locally owned state-owned enterprises, up 61.6%; foreign-invested enterprises, up 52.58%; personal income tax, up 11.38%; registration fees, up 22.9%; and lottery revenue, up 21.21%.

Processed seafood for export contributing to higher budget revenue province-wide.

According to the Department of Finance, overall revenue collection has broadly met fiscal management requirements. However, several major revenue sources underperformed. Land use levy revenue, in particular, totalled only 1,757 billion VND, equivalent to 31.95% of the estimate assigned by the central government as well as 28.85% of the provincial estimate. According to Mr. Dao Nam Cuong, Deputy Director of the Provincial Land Development Centre, auctions for large urban development projects have attracted limited investor interest as market demand remains concentrated on individual land plots. By the end of June 2026, the centre had successfully auctioned only 36 land plots, generating nearly 132 billion VND.

Likewise, revenue from import-export activities reached just 87.4 billion VND, representing 59.06% of the estimates assigned by both the central government and the province, 46.99% of the annual scenario, down 8.78% year-on-year. The shortfall was mainly attributed to prolonged challenges in international trade, softer demand across several major export markets, together with an import-export structure largely dependent on agricultural commodities, raw materials, combined with low-tax goods.

Stepping up efforts to meet the revenue target

To achieve the full-year state budget revenue target of 19,880 billion VND, the province must collect more than 10,947 billion VND during the second half of the year. The Provincial Tax Department has been tasked with spearheading measures to strengthen revenue administration, prevent revenue leakage, recover tax arrears, while expediting auctions for mineral extraction rights, land use levies alongside land use rights subject to one-off land rental payments.

The Department of Agriculture and Environment has been assigned to coordinate land use rights auctions to shorten processing times while generating land use levy revenue at an earlier stage. The department is also responsible for completing licensing procedures for mineral extraction projects that have secured auction rights alongside expediting land use levy auctions in accordance with regulations.

Revenue from production and business activities province-wide recording positive growth. (Photo: An export garment processing facility in Hoa Phu Industrial Park)

Units assigned to conduct land use rights auctions have been instructed to accelerate compensation and site clearance, complete legal procedures, together with developing the required infrastructure. They must ensure that auction are conducted publicly, transparently, and in compliance with legal regulations, while strengthening inspection to prevent losses alongside maximising the efficient use of land resources as well as budget revenue.

Simultaneously, relevant departments together with agencies have been directed to propose decentralising authority to commune and ward administrations to organise auctions for eligible land parcels, thereby improving land resource utilisation alongside increasing budget revenue.

On this matter, comrade Do Huu Huy, Alternate Member of the Party Central Committee, Deputy Secretary of the Provincial Party Committee, and PPC Chairman, instructed departments, agencies, units, along with People's Committees of communes and wards to comprehensively review all potential revenue sources. He called for stronger measures to combat revenue losses, transfer pricing, combined with tax evasion, while making more effective use of land resources, public assets, mineral resources, as well as production and business activities. He also directed agencies to regularly report implementation progress and proactively propose solutions to resolve bottlenecks, ensuring the province achieves its budget revenue targets.

Translated by KHUONG THAO