Government income is estimated to total 390.65 trillion dong while spending may be more than 533 trillion in 2009, the ministry said in its annual report obtained by Bloomberg News today. It didn't have comparable figures for last year.

Vietnam is "faced with a huge trade deficit and they are also faced with a big budget deficit, so these twin deficits are presenting incredible challenges," Mark Mobius, who oversees about $25 billion of emerging-market securities as chair of Templeton Asset Management, said in an interview last week. The $90 billion economy posted a $1.97 billion trade gap in November, the highest since the first half of 2008.

Vietnam early this year put in place stimulus measures that the government values at $8 billion in a bid to boost the economy, which grew 3.1 percent in the first quarter, the slowest pace on record. The package may increase Vietnam's budget deficit to as much as 10.3 percent of gross domestic product this year from 4.1 percent in 2008, the Asian Development Bank said in September.

The government plans to narrow its budget shortfall to 120.7 trillion dong in 2010 with its revenue increasing to 461.5 trillion dong on higher exports and domestic sales, according to the finance ministry's report.

Bloomberg - December 4, 2009

Vietnam economy growing but fragile

Revised statistics released Monday by Vietnam's General Statistical Office showed industrial production rising, but foreign investment falling and exports slowing. Industrial production rose 3.6 percent in November over October, the fourth consecutive month of increase. Production was up 13 percent from November 2008.

Leading the increase were a 14-per-cent rise in crude oil production, 46 percent in air conditioners and 19 percent in cement.

New foreign direct investment (FDI) pledges shrank to 0.8 billion dollars in November. Vietnam attracted 19.7 billion dollars in FDI commitments in the first 11 months, down 72 percent compared with the same period last year.

Nine billion dollars in FDI were disbursed through November, down over 10 percent compared with the same period last year.

Vietnamese exports earned 4.7 billion dollars in November, down 6.5 percent from October. Imports stayed steady at 6.7 billion dollars, but were up 40 percent compared with November last year.

Exports totalled 51.3 billion dollars through November, with imports of 61.7 billion dollars, down 12 and 18 percent from the same period in 2008.

In June, the government lowered its projected 2009 export revenues from 72 billion to 65 billion dollars, an increase of 3 percent over 2008. That goal will not be met, and the trade deficit is likely to rise sharply in December due to the State Bank's decision in November to relax a ban on gold imports.

Vietnam received 3.4 million foreign visitors in the first 11 months, down 12 percent from the same period last year. China accounted for 476,500 visitors, down 19 percent year-on-year, with the US second at 368,000, down 3%.

GDP growth fell from 8.5 percent in 2007 to 6.2 percent last year. The government initially set a target for economic growth of 6.5 percent this year, but the sharp drop in production and exports forced it to readjust the target to 5 percent in May.

Deutsche Presse Agentur - December 2, 2009