 |
| Automobile assembly operations at Kim Long Motor Hue JSC. Photo: Kim Long Motor |
Industry emerges as a pillar in the revenue structure
Hue’s budget revenue, once anchored in trade, services and tourism, is increasingly being reshaped by the rise of large-scale industrial and manufacturing activities. The shift requires a more systematic and long-term approach to support businesses.
The current budget revenue structure highlights significant contributions from businesses such as Kim Long Motor Hue JSC, Kanglongda Protective Technology Vietnam Co., Ltd., Carlsberg Vietnam Breweries Co., Ltd, textile and garment firms, and a group of accommodation and tourism service providers. While each business has its own strengths, they share a common role in sustaining the city’s financial lifeline.
Mr. Nguyen Tien Hau, Deputy General Director of Hue Textile and Garment JSC shared: “In the past, the company’s revenue mainly came from processing orders. However, with a production chain that is self-designed and supported by self-sourced materials, the company’s contribution to the state budget has increased significantly”.
According to the Department of Finance, revenue from the textile and garment industry has remained stable. Moreover, despite having only begun operations, Kim Long Motor Hue has quickly emerged itself to the city’s top of corporate taxpayers.
According to the City’s Statistics Sub-department, Kanglongda Vietnam Protective Technology Co., Ltd, a glove producer, is expected to reach the production of 26,946 tons of products (exceeding the plan of 24,000 tons) this year by nearly 3,000 tons, up 12.3% year on year. As a result, its contribution to the state budget is also expected to increase. In the overall backdrop, Carlsberg Vietnam Breweries Ltd. continues to be a major contributor of special consumption tax. Despite the chaos in the beer market, this business has still maintained its steady growth momentum.
Mr. La Phuc Thanh, Director of the Department of Finance, informed: “The city needs to push up its process of administrative procedure reforms to enable businesses to put expansion project into operation, thereby boosting state revenue”.
Alongside industry, the services and tourism sector continues to serve as the backbone of inner-city revenue. Four- and five-star hotels, high-end homestay networks, travel companies, and transport and trade businesses remain key contributors through value-added tax and corporate income tax.
Ms. Tran Thi Hoai Tram, Director of the Department of Tourism, said that the number of international visitors from South Korea, Thailand, Australia, and Europe rose sharply over the past year, helping service-sector revenue maintain the positive growth.
 |
| Workers at Kim Long Motor Hue JSC inspecting the technical specifications of a newly launched YUCHAI engine |
Removing bottlenecks
According to the City’s Statistics Sub-department, achieving double-digit growth in the 2026-2030 period will require total investment capital of up to VND 252 trillion. While the ICOR has improved, from 11.9 in 2021 to an estimated 5.64 in 2025, challenges from natural disasters and market volatility remain.
Tax authorities said that bottlenecks facing Kim Long Motor Hue have been resolved, with the city coordinating the processing of tax refunds funded by the central government to help the company restore cash flow. The city has now fulfilled the state budget revenue targets assigned by the National Assembly and the central government, and is striving to exceed the plan set by the municipal People’s Committee. A tax sector representative stressed that the revenue structure needs to shift toward more sustainable, long-term sources, alongside priorities for land clearances and stronger support for businesses.
Mr. Phan Quy Phuong, Vice Chairman of Hue City People’s Committee, said that many major revenue items have recorded strong year-on-year growth, creating significant headroom for further expansion. However, to sustain this momentum, the city must focus on resolving bottlenecks in the industrial and construction sectors, particularly by accelerating the disbursement of public investment capital.
He also affirmed that to boost growth, difficulties facing non-budget projects must be addressed promptly. Project-related procedures need to be reviewed and streamlined to the greatest extent possible, while land clearance needs to be treated as the leading priority, as it remains a key bottleneck delaying many major projects.
At the same time, the city is rolling out a plan to curb revenue losses in areas such as real estate, e-commerce, and private construction, … with a view to broadening the revenue base and ensuring tax fairness. Hue is also addressing bottlenecks in industrial parks and clusters to create production land for small and medium-sized businesses.
In the field of trade and services, Vice Chairman of the City People’s Committee Phan Quy Phuong stressed that the largest source of revenue continues to come from overnight visitors and their spending. The city needs to further invest in and upgrade tourism infrastructure, hotel systems, resorts, and large-scale cultural and tourism event venues to extend visitors’ length of stay and boost tourist spending.