State budget revenue from Dung Quat Refinery reduces by 60pct

26-Jul-2016 Intellasia | VnEconomy | 6:00 AM Print This Post

Total budget revenue from Dung Quat Refinery reached only 36.4 percent of the target, decreasing by 60 percent (equivalent to 9.3 trillion dong) compared to the same period of 2015. This figure had been reported by the government to the National Assembly in the report of first-6-month state budget implementation.

According to the report, the planned budget revenue was 1,014.5 trillion dong. For the first 6 months, the revenue was 476.8 trillion dong, accounting for 47 percent of the target and increasing by 6.1 percent compared to the same period of 2015.

It was also emphazied that this growth was the lowest over the last 2 years. For 2014, the first-half revenue accounted for 53.9 percent of the target, increasing by 18.1 percent; for 2015, it accounted for 49.3 percent, increasing by 6.8 percent.

The government assessed that the positive sign was that all important revenues from critical manufacturing and production reached the higher level than last year.

In particular, revenue from non-state industrial and commercial areas reached 53.8 percent of the estimation, increasing by 22.9 percent; that from foreign-invested enterprises reached 49.1 percent of the estimation, increasing by 12.8 percent; individual income tax revenue reached 56.1 percent of the estimation, increasing by 16.8 percent; land use revenue reached 75.2 percent, increasing by 34.2 percent…

The main contributor for the low growth was the deceleration in the petroleum manufacturing and refinery sector due to the reduced petroleum price.

Similar to Dung Quat refinery, revenue from PetroVietnam (PVN) reached only 19.1 percent of the estimates, decreasing by 75 percent (equivalent to 1.4 trillion dong) compared to the same period of 2015. The revenue from Camau Gas-Electricity-Fertiliser Complex reached only 30 percent of the estimates, reducing by 280 billion dong compared to 2015…

This could also blame for budget revenue decrease at SOEs, mainly due to hydropower enterprises being affected by unfavourable weather condition and severe drought.

Then coal and mineral enterprises were also affected because the price fell and the production expense soared while the income from dividend and profit stayed low.

Similar to last year, crude oil revenue reduced. The estimate was 54.5 trillion dong on the basis of the estimated output of 14.02 million tonnes and estimated price of 60 USD/barrel. The actual revenue for the first 6 months reached 20.3 trillion dong, equivalent to 37.2 percent of the estimate, reducing 44.8 percent compared to the same period of 2015.

The government assessed that the overall actual budget could exceed the estimates that the N/A had planned. However, by structure, provincial revenue could exceed the estimates while the central budget must strive drastically for the completion.

 


Category: Economy, Vietnam

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