Of the total figure, the domestic sector has contributed VND70,570 billion, up 15 percent compared to the same period last year.

The Ministry of Finance (MoF) put this down to efforts to control the market, prevent smuggling and trade fraud and tax evasion. Another reason is that business and production activities return to normal after the Lunar New Year festival.

Over the past two months, the MoF has provided central and local agencies with detailed guidelines on how to curb inflation and stablise the macro-economy. It plans to increase state budget collections by 7-8 percent this year, cut another 10 percent of public spending on the use of cars, air conditioners, electricity, water, telephone, office stationeries, and petroleum in the remaining months of the year.