The port city of Hai Phong in northern Vietnam has outlined a financial plan for the 2026-2028 period, aiming for a gradual increase in domestic revenue of 4.49% in 2027 and 5.34% in 2028, compared to the previous year.
However, regarding the revenue structure, land use fee, which is the largest source for the city's State budget, is expected to decline, while revenues from non-state enterprises, including FDI) ones, are anticipated to rise.
According to the plan, the city's domestic revenue for its State budget is projected to exceed VND103 trillion (nearly $4 billion) in 2026, to surpass VND108 trillion (more than $4.1 billion) in 2027 (a year-on-year 4.49% increase), and then to reach approximately VND114 trillion (nearly $4.33 billion) in 2028 (a year-on-year 5.34% increase).
Despite the forecast annual growth in total domestic revenue, the revenue from land use fees is expected to decrease in both absolute and percentage terms.
In 2025, land use fees accounted for VND41 trillion (nearly $1.56 billion) or 41% out of the city's total domestic revenue estimated at VND100 trillion (nearly $3.8 billion). In 2026, Hai Phong plans for domestic revenue of more than VND103 trillion (nearly $4 billion), but land use fees are expected to drop to VND36.2 trillion (nearly $1.4 billion), making up only 35.09% of the total. In 2027, the respective figures are expected to stand at nearly VND108.3 trillion, VND36.2 trillion, and 33.43%. In 2028, the respective figures are expected to be more than VND114 trillion, VND36.2 trillion, and 31.74%.
Economic experts suggest that the 10% reduction in the proportion of land use fees within the city's local budget in a short period indicates positive shifts in Hai Phong's economic structure. The city's budget is gradually becoming less dependent on land revenue, shifting towards more stable and sustainable sources. The reduced reliance on land use fees also signals a decrease in costs for individuals and businesses in the real estate sector, potentially fostering a healthier real estate market.
While the proportion of land use fees in domestic revenue is declining, the share of revenue from non-state enterprises, including FDI ones. is on the rise. In 2025, the city's revenue from FDI enterprises reached nearly VND15.5 trillion or 15.48% of its total domestic revenue, and from local non-state enterprises reached more than VND18.7 trillion or 18.71% of its total domestic revenue.
In 2026, Hai Phong aims to collect nearly VND103.2 trillion for its domestic revenue, with contribution from FDI enterprises standing at VND17.65 trillion (17.12% of the total) and from local non-state enterprises at VND22.6 trillion (approximately 21.9%). In 2027, the respective figures are expected to stand at nearly VND108.3 trillion, nearly VND19.4 trillion (17.86% of the total), and VND24.26 trillion (22.41%). In 2028, the respective figures are expected to be more than VND114 trillion, nearly VND20.7 trillion (18.1% of the total), nearly VND26 trillion (22.76%).
Other significant revenue sources, such as personal income tax, environmental protection tax, fees and charges, registration fees, revenue from state-owned enterprises managed by the central government, and revenue from state-owned enterprises managed by local authorities, as well as revenue from land and water surface leases, are not expected to see major changes. Revenue from agricultural land use tax, mineral and water resource exploitation rights fees are not expected to grow.
Economic experts believe that the increasing share of revenue from FDI and local non-state enterprises reflects an improved investment environment in the city, attracting significant high-tech investment capital. Its economy is maintaining dynamic growth, deep economic integration, and shifting towards growth driven by the private sector, contributing to enhanced production and export capacity, and improving competitiveness both domestically and internationally.
According to the financial plan, in 2026, Hai Phong aims for total revenue (including domestic and import-export revenue) of nearly VND 196 trillion (nearly $7.5 billion), an increase of 4.35% from 2025.
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