Top Corporate Taxpayers in Vietnam: A Significant Contribution to the State Budget

In a recent report, it was revealed that the top 10 corporate taxpayers in Vietnam contributed a staggering VNĐ333.6 trillion (approximately US$13.1 billion) to the State budget from June 30, 2023, to March 31, 2024. Leading the list is PetroVietnam (PVN), which paid nearly VNĐ95 trillion (around US$3.7 billion). Following closely are Viettel and Petrolimex, contributing VNĐ37.8 trillion and VNĐ33.4 trillion, respectively. Notably, Vingroup stands out as the only private company among the top five, contributing VNĐ30.9 trillion. The list comprises five state-owned enterprises, three foreign direct investment firms, and two private companies [108d9f51].

Meanwhile, Vietnam's state budget revenue for the first nine months of the year was estimated to be over VNĐ1.2 quadrillion (US$50.8 billion), marking an 8.3% decrease compared to the previous year. The domestic revenue managed by tax authorities in September reached VNĐ75.6 trillion, bringing the nine-month total to over VNĐ1 quadrillion, a 3.2% decrease year-on-year. To address the challenges faced in the final quarter, the sector will focus on increasing state budget collection, ensuring accurate and timely collection, and enhancing the recovery of overdue debts [3ea1bd3f].

Despite the contributions from major corporate taxpayers, businesses in Vietnam are hoping for a recovery in 2024, but concerns remain about low demand both domestically and internationally. The owner of a wood processing firm expressed that while there are currently enough orders to work through this month, the market is still frozen and global demand is decreasing. Representatives from business associations in Ho Chi Minh City and Hanoi also shared similar sentiments, stating that orders and demand are still at a very low level. The European Business Association in Vietnam reported that the Business Confidence Index increased slightly in the third quarter but remained below the average threshold, indicating a lack of optimism among European companies operating in Vietnam. Despite the challenges, business leaders are hopeful for improvement in 2024, with expectations of a new cycle in the housing market and positive outcomes in the tourism industry due to new policies such as the easing of visa rules [12081f07].

In addition to corporate tax contributions, Vietnam's economic landscape is influenced by various sectors. The ASEAN+3 Macroeconomic Research Office (AMRO) has revised Vietnam's economic growth forecast for 2023 to 4.7% from the previous 4.4% [1dd69d68]. Workers in the southeastern region of Vietnam received an average monthly salary of VND9.3 million (US$366) in the second quarter, the highest among Vietnam’s six distinct economic regions. This represents an 8.1% growth over the same period last year, highlighting the resilience of certain sectors despite broader economic challenges [8b7847c1].

China's job market continues to face challenges, with the average monthly salary in 38 major Chinese cities dropping by 1.3% in Q4 2023, the biggest quarterly drop since 2016. The decline in wages is attributed to regulatory crackdowns, strained public finances, and weak domestic and overseas demand. Entry-level salaries in new-economy sectors, including electric vehicles, batteries, and solar and wind power, have also been falling. The high youth unemployment rate and low consumer confidence further contribute to the challenging economic conditions. The pressure on the job market is expected to worsen in 2024, with no apparent solution in sight [292b4f11].