This is a big challenge when the province is preparing for the project to merge with Da Nang city according to the Central Government's policy.
Not enough to spend
According to the People's Committee of Quang Nam province, in the first 4 months of 2025, the total state budget revenue in the province reached 7,815 billion dong, reaching 31.3% of the year estimate and only 98% over the same period last year. Worth mentioning, this figure includes the tax extension under Decree 81 and 82 of the Government (VND 931 billion), showing that the actual revenue tends to slow down.
The situation is even more worrying when compared to spending demand. Total budget expenditure in the past 4 months reached VND 8,815 billion - exceeding revenue by more than VND 1,000 billion. Of which, development investment expenditure accounts for VND 3,604 billion, and regular expenditure is VND 5,209 billion.
The domestic revenue structure accounts for a high proportion (7,222 billion dong), but the revenue from the land use fee - which used to be the "life buoy" of the local budget - is sharply decreasing. By the end of the first quarter of 2025, revenue from this field was only 167 billion dong, too low compared to the all year estimate was 3,300 billion dong - the lowest level in the 4 provinces of the XII tax area.
This is the third consecutive year that land use fees - which are a source of revenue that accounts for a large proportion of Quang Nam province's budget revenue - have decreased sharply.
Quang Nam currently depends largely on revenue from some leading enterprises, especially THACO Group in Chu Lai Open Economic Zone. However, many tax incentives for large enterprises are gradually expiring, causing revenue to decline. Meanwhile, the demand for budget expenditure is increasing due to infrastructure investment and social security.
Mr. Le Van Dung - Chairman of the People's Committee of Quang Nam province - frankly acknowledged that the current collection situation is not really sustainable. The province is forced to restructure revenue sources, save regular spending, reduce unnecessary spending and find new room for increased revenue.
Long-term strategy needed for a new Quang Nam
According to the People's Committee of Quang Nam province, industrial growth in the first 4 months of 2025 shows signs of stagnation due to the impact of the global economy. The progress of public investment disbursement is slow, mainly due to problems in compensation, site clearance and many projects being suspended pending plans to reorganize new administrative units.
The business environment is still not really stable. Although the number of newly established enterprises has increased, the number of enterprises temporarily suspended and dissolved is still high - reflecting the weak resilience of the manufacturing sector.
Faced with the above situation, the Provincial People's Committee issued Directive No. 02/2025, requiring departments, branches and localities to tighten financial discipline, strictly manage budget revenue and expenditure, spend on target and save.
The province is aiming for a long-term strategy with solutions to restructure revenue sources: reduce dependence on large enterprises, promote administrative reform, develop the digital economy and green tourism. These are also important orientations in the preparation process for the " sense of occupation" stage.
