The 2024 State budget for Vietnam was discussed and approved during the sixth session of the National Assembly in December 2023. Following this, the National Assembly issued Decision 104/2023/QH15, detailing budget allocations for both central and provincial governments, as well as projecting state income for 2024.
The 2024 budget proposes a budget deficit of 399.4 trillion VND (around US$16.3 billion). This overspending represents 3.6% of GDP, with 3.4% stemming from the central budget and 0.2% from the local budget.
Highlights of 2024 Budget Expenditure
In 2024, the budget for spending is set at over 2,199 trillion VND (US$86.51 billion), a 2% increase from 2023. The central budget, covering various ministries, constitutes 58% of total expenditures, while other expenses, including development investments and debt interest payments, make up 42%, marking a 14% increase from 2023. This rise is largely due to provisions for salary reform, with 55.4 trillion VND (US$2.2 billion) allocated for the 2024-2026 national plan.
Table 1: Total budget expenditure in 2024
Spending Priorities of central budget
In 2024, central government spending is set 5% lower than in 2023, with a 33% decrease for the Ministry of Transportation, a 12% decrease for the Ministry of Finance, a 23% decrease for the Ministry of Culture, Sports, and Tourism, and a 31% decrease for the Ministry of Information and Communications, among others. Among the ministries receiving the most significant shares of the central budget for 2024 include: The Ministry of National Defense (MND), the Ministry of Public Security (MPS), the Ministry of Transportation (MOT), Vietnam Social Security (VSS), and the Ministry of Labor, Invalids, and Social Affairs (MOLISA). These five ministries account for over 82% of the 1,225 trillion VND (US$50 billion) central government spending for all ministries and government agencies in 2024. Notably, in the 2024 budget plan, the allocated budget for the Ministry of National Defense (MND) and the Ministry of Public Security (MPS) was disclosed for the first time, with US$8.47 billion for MND and US$4.62 billion for MPS. Together, these two ministries represent over 26% of the total central budget and more than half of the central budget for all ministries.
Table 2: Allocation of central budget in 2024
Highlights of 2024 State Revenue
In 2024, State budget revenue is approximately US$58.9 billion, marking an 8% increase from 2023. Domestic sources contribute 85% of total revenue and are expected to rise by 8%. Among domestic revenue, contributions from domestic private companies account for the highest share at 14%, followed by real estate income (15%) and foreign-invested companies (14%).
Tax revenue shows a decline in the Environmental Protection Tax (EPT) which has been extended until the end of 2024 by Resolution 42/2023/UBTVQH15. On the contrary, with the 30% reduction in land use fees ending in 2023 and the passing of the long-delayed new Land Law during the recent January 2024 National Assembly meeting, revenue from real estate-related taxes and fees, constituting 15% of total budgeted revenue in 2024, is set to increase by 45% compared to 2023.
Table 3: State revenue in 2024
Provincial Budget in 2024
The budget allocated to provinces is on the rise in 2024, with spending increasing by 13% and income by 12% compared with 2023. Hanoi and Ho Chi Minh City received the largest budget allocations and remain the leading contributors to the State budget among the 63 provinces and central cities.
Table 4: 2024 Provincial Budget
The 2024 budget is expected to support the Government of Vietnam's efforts to reach its ambitious economic targets for 2024, including 6% - 6.5% GDP growth, as outlined in the Socio-Economic Development Plan. This includes key areas such as the green economy, digital economy, circular economy, semiconductor manufacturing, and e-commerce. The budget also allocates resources for implementing three national target programs: rural development, sustainable poverty reduction, and socio-economic development in mountainous and ethnic minority areas.
Additional readings on Vietnam’s state budget for 2024:
- The 2024 state budget revenue plan is appropriate to economic growth target, Vietnam National Tax Magazine, December 12, 2023
- Vietnam plans to borrow $27.6 bln in 2024, The Investor, October 9, 2023
- Country Data: Vietnam, International Monetary Fund, October 2023
- Vietnam should extend economic support program to 2024, Langson news, December 19, 2023
