Vietnam reports 48% drop in oil revenue in Jan-April

The Ministry of Finance's new data showed a year-on-year drop of 48.1% to VND13 trillion (US$576.71 million) in the first four months. That was equivalent to less than 24% of the target.

The decline happened even as the average price of Vietnam's crude oil increased 18% month-on-month to around US$39 per barrel in April, according to the ministry.

Export and import tariff revenues, another main income source of the state budget, also declined 15.9% to VND38.9 trillion in January-April, it said.

However, the state's revenue still posted a slight increase of 1.2% to VND317 trillion in the first four months, as other sources such as corporate and luxury taxes grew 9.6% compared to the same period last year.

Spending increased 4.7% to more than VND370.6 trillion, the ministry reported.

More than 70% of the spending was for funding the government's administrative system, while public projects such as transport infrastructure and schools accounted for just around 15%.

Vietnam's debt servicing costs grew 4.4% to VND51.9 trillion in January-April, or 15% of the state spending.

Latest figures released by the government in March showed Vietnam's public debt was equivalent to 62.2% of GDP, and foreign debt 43.1%.

Vietnam's legislature capped the state budget deficit 4.95% of gross domestic product this year.

Last year the budget deficit was originally expected to be around 5% of GDP, but in the end it was equivalent to 6.1%.