Crude oil revenue shrinks 40 percent in February

By Bui Hong Nhung   March 15, 2016 | 09:02 pm GMT+7

State budget revenue from crude oil in February was VND2.7 trillion ($120 million), down 40 percent year on year, according to the Vietnamese government.

In January to February combined, the figure was VND5.7 trillion, dropping 57 percent from the same period last year.

Deputy Minister of Finance Do Hoang Tuan Anh said during an online conference on February 27 that state budget income was likely to slump by VND50 trillion in 2016, due to the price slide of crude oil on the global market.

The Vietnam Institute for Economic and Policy Research (VEPR) also forecast state budget revenue in 2016 was likely to drop VND40 trillion if the global price for crude oil was $40 per barrel. Should the price hover around $32 per barrel, the figure would be VND60 trillion. In the worst-case scenario, if crude oil is traded at $20 per barrel, the government's revenue could plunge by as much as VND85 trillion.

The country collected VND911.1 trillion of state budget revenue in 2015, of which crude oil contributed VND93 trillion, data from the Ministry of Finance showed.

The ministry expects state budget revenue in 2016 to reach VND1,014.5 trillion, with collections from crude oil to contribute VND54.5 trillion.