The headquarters of the HCM City People’s Committee. — VNA/VNS Photo Bồ Xuân Hiệp

HCM CITY — HCM City expects to generate nearly VNĐ700 trillion (US$27.4 billion) in budget revenue this year following its administrative merger with Bình Dương and Bà Rịa–Vũng Tàu provinces, accounting for nearly one-third of the national total.

The revised estimate was approved by the HCM City People’s Council on Thursday, marking the first major fiscal projection since the merger took effect on July 1.

According to the resolution, the new city is projected to collect VNĐ697.4 trillion in 2025, or 32.7 per cent of total State revenue. 

The former HCM City accounts for 74.6 per cent of that amount, Bà Rịa-Vũng Tàu 14.7 per cent, and Bình Dương 10.7 per cent.

Revenue sources include VNĐ49 trillion from crude oil, VNĐ172 trillion from import-export taxes, and VNĐ475 trillion in domestic revenue.

In the first half of this year, the three combined localities collected nearly VNĐ372 trillion, equivalent to over 55 per cent of the annual target.

HCM City has long been the country’s top budget contributor.

The merger expanded the city’s area to over 6,700sq.km, which is more than triple its previous size, with a combined population of around 14 million. 

It is now considered a national-level mega-city, with the administrative centre remaining in HCM City.

Post-merger, the city continues to lead in GDP and fiscal contribution.

Total local budget spending is projected at over VNĐ282 trillion this year, including more than VNĐ150 trillion for development investment and VNĐ106 trillion for regular expenditures. The remainder will go toward debt servicing, contingency funds, and wage reform.

The People’s Council also approved a resolution to consolidate public investment plans from the three former provinces. 

The medium-term public investment plan for 2021–2025 now includes 14,217 projects with nearly VNĐ469 trillion in allocated funding. 

The 2025 public investment plan includes 6,811 projects with a total capital allocation of nearly VNĐ156 trillion.

Six State-funded projects from 2024 will be extended into 2025 with a total budget of nearly VNĐ975 billion. — VNS