Tax officials in HCM City provide guidance and address concerns from household businesses ahead of the transition to the new tax management model. — VNA/VNS Photo

HCM CITY — HCM City maintained robust budget revenue growth in the first five months of 2026, with total State budget collections reaching an estimated VNĐ402 trillion (US$15.3 billion), equivalent to 49.8 per cent of the annual target and up 24.3 per cent year on year.

According to the municipal Statistics Office, domestic revenue remained the main source of budget income, contributing VNĐ305.3 trillion, accounting for 76 per cent of total collections.

The figure fulfilled 51.6 per cent of the yearly estimate and rose 30.2 per cent from the same period last year.

The non-State business sector continued to be the largest contributor to domestic revenue, generating an estimated VNĐ102.2 trillion, up 47.3 per cent year on year and representing 25.4 per cent of total budget revenue.

Revenue from State-owned enterprises reached VNĐ26 trillion, an increase of 45 per cent, while foreign-invested enterprises contributed VNĐ70.8 trillion, up 29.8 per cent.

Revenue from land and housing related sources emerged as another bright spot, reaching VNĐ32.1 trillion, soaring 84.6 per cent from a year earlier.

The increase reflected improving conditions in the property market and more effective utilisation of land resources.

Personal income tax collections totalled VNĐ43.8 trillion, up 0.7 per cent.

Revenue from crude oil was estimated at VNĐ21.8 trillion ($839 million), equivalent to 55.2 per cent of the annual target and accounting for 5.4 per cent of total budget revenue, up 8.4 per cent year on year.

Meanwhile, revenue from import and export activities reached VNĐ74.7 trillion, fulfilling 42.4 per cent of the annual estimate and increasing 8.9 per cent from the same period last year.

Notably, local budget revenue is approaching its annual target well ahead of schedule.

During the first five months, collections were estimated at VNĐ282.9 trillion ($10.9 billion), equal to 96.8 per cent of the full-year target and up 43.2 per cent year on year.

The result highlights the city's improving capacity to mobilise financial resources.

However, budget expenditure continued to lag behind revenue growth.

Total local budget spending in the January to May period was estimated at VNĐ70.2 trillion ($2.7 billion), equivalent to only 21.4 per cent of the annual plan, although it increased 31.6 per cent compared with the same period last year.

The main constraint remained slow disbursement of public investment capital and delays in implementing development programmes.

Development investment expenditure financed by the local budget reached only 17.6 per cent of the annual estimate, totalling VNĐ28.8 trillion ($1.1 billion).

Nevertheless, the figure represented a sharp increase of 72.8 per cent year on year.

Strong revenue growth has created room to finance socio-economic programmes and meet key spending commitments. However, development investment spending has lagged behind, underscoring the need to accelerate public investment disbursement and improve capital utilisation. — VNS