State Budget Revenue Surges on the Back of Strong Economic Growth

Phu Tho Province collected more than VND 34 trillion in State budget revenue during the first six months of 2026, equivalent to nearly 60% of the annual target and up 16.5% year-on-year. The result reflects not only effective revenue administration but also the province’s robust economic performance, successful administrative reforms and a steady shift toward a more sustainable growth model.

Foreign-invested enterprises are among the key drivers of Phu Tho’s economic growth and State budget revenue.

Revenue Driven by Economic Growth

The structure of budget revenue has become increasingly balanced and sustainable. During the first half of the year, domestic revenue reached approximately VND 30.9 trillion, an increase of 18.7% compared with the same period last year.

Notably, revenue from the foreign direct investment (FDI) sector exceeded VND 13.3 trillion, up more than 50%, while revenue from the non-state sector reached nearly VND 5.9 trillion, rising by more than 83%. Revenue from state-owned enterprises also increased by over 25%.

These figures demonstrate that budget growth is increasingly being generated by genuine economic expansion rather than one-off revenue sources.

The trend is consistent with the province’s industrial performance. The Industrial Production Index (IIP) increased by approximately 25%, with strong growth recorded in key export products such as electronic components, electronic equipment, laptop computers and telecommunications devices. Many foreign-invested manufacturers have continued expanding production capacity and increasing output to meet export demand.

According to Nguyen Trong Viet Hai, Deputy Head of the Provincial Tax Department, sustainable business growth naturally leads to higher budget revenue as corporate profits rise, employment expands and workers' incomes improve. He noted that economic growth and budget revenue are no longer parallel indicators but have become mutually reinforcing, with growth generating revenue that can then be reinvested to support further development.

Expanding Revenue Sources

One of Phu Tho’s most notable achievements during the first half of the year has been its strong ability to attract investment. The province secured approximately $1.77 billion in FDI, nearly five times the amount recorded during the same period last year.

A series of large-scale projects have either received investment approval or expanded production, particularly in electronics, supporting industries, advanced materials and high-tech manufacturing. Beyond increasing investment capital, these projects have quickly generated industrial output, export value, employment opportunities and additional budget revenue.

According to Le Van Loc, Deputy Director of the Department of Finance, most newly licensed projects are now better prepared than in previous years and are being implemented much more rapidly thanks to improved site clearance, streamlined investment procedures and stronger support from local authorities. This has significantly shortened the time between investment approval and actual budget contributions.

Alongside the FDI sector, the private sector is becoming another important engine of growth. The number of newly established enterprises and businesses resuming operations has increased markedly, creating new sources of revenue from manufacturing, trade and services. This demonstrates that policies supporting business development are not only improving the investment climate but also directly expanding the province’s long-term tax base.

Nurturing Sustainable Revenue Growth

While the province’s impressive budget revenue may appear to be the achievement of the tax authorities alone, it is in fact the result of coordinated efforts across the entire political system.

In recent years, Phu Tho has introduced numerous measures to improve the investment and business environment, including maintaining the “Business Coffee” dialogue programme, operating a “green channel” for administrative procedures, resolving business difficulties at the grassroots level, accelerating digital transformation in public administration and shortening investment approval times.

At the same time, tax administration has been modernised through wider application of digital technologies, stronger management of electronic invoices, enhanced efforts to prevent revenue losses and reduce tax arrears, while continuing to support business recovery and expansion.

This reflects a significant shift in governance philosophy. Rather than focusing solely on meeting annual revenue targets, the province now prioritises creating favourable conditions for businesses to expand production, thereby generating stable and sustainable sources of revenue.

According to Nguyen Thang Long, Director of an electronic component manufacturing company in Binh Xuyen Industrial Park, what businesses value most is not simply preferential policies but effective support from local authorities in administrative procedures, land access, electricity, water supply and workforce development. Once production is stable, enterprises are fully capable of meeting their tax obligations.

The strong budget performance achieved during the first half of the year provides a solid foundation for Phu Tho to accomplish its annual revenue targets. However, amid continuing global economic uncertainties and intensifying competition, maintaining this growth momentum will require comprehensive and coordinated solutions.

In the coming months, the province will continue focusing on removing obstacles for businesses, accelerating investment projects, increasing public investment disbursement, developing new industrial parks, expanding opportunities for private-sector growth, and tapping emerging revenue sources from the digital economy and e-commerce.

Above all, Phu Tho remains committed to the principle that sustainable budget growth must be built upon expanding production and business activities. Only when enterprises thrive, employment increases and economic activity expands can budget revenue continue growing in a stable and sustainable manner.

The collection of more than VND 34 trillion in State budget revenue during the first half of 2026 therefore represents more than a fiscal achievement. It reflects the growing strength of an economy entering a new stage of development, driven by institutional reform, business confidence and the province’s commitment to creating an increasingly transparent, efficient and investor-friendly business environment. These growth drivers will continue to provide a strong foundation for Phu Tho’s goal of achieving rapid and sustainable economic development in the years ahead.

Quang Nam