Oil won't affect 2015 budget

The budget revenue this year has exceeded the target to reach between VND65 trillion and VND66 trillion (US$2.9 billion), including 6 per cent from tax revenue of the crude oil exports, he said. The tax revenue from the crude oil exports at present does not account for a large segment of the total tax revenue unlike five to ten years earlier.

The finance ministry has forecast economic development for each case that the crude oil price is US$60, US$50, US$45, or US$40 or even US$35, or US$30 per barrel, he said.

In 2016, Vietnam would import 12.5 million tonnes to 13 million tonnes of petrol and oil and if the world crude oil price still remains at US$36 per barrel, the nation would save between US$2 billion and US$2.1 billion.

The reduction in oil prices would bring down the input price of production, so production and business of enterprises and people would improve, leading to an increase in the tax revenue from the local economy, Tuan said.

Luong Van Khoi, head of the World Economic Department under the Ministry of Planning and Investment's National Centre for Socio-Economic Information and Forecast, said the government and the State Bank of Vietnam should follow closely the fluctuation of the world crude oil price and policies in countries which are Vietnam's biggest trading partners and ensure a reasonable adjustment for exchange rate.

They should also tighten monetary policies to promote economic growth, reduce the petrol price in the local market to enhance production growth and reform the tax system to ensure tax revenue or offset lower tax revenue due to reduction of world oil prices.

Vietnam would also promote restructuring of its economy, including institution reforms for creating favourable conditions for economic growth.