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Falling Oil Poses Vietnam Price or State-Budget Conundrum

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Plunging oil prices are spurring domestic consumption in Vietnam in a boost to the economy. They also threaten the country’s efforts to curb its budget deficit, presenting a dilemma for the government.

A slump in crude prices poses a risk to government revenue from oil, which makes up about 10 percent of state income, according to Bui Duc Thu, a member of the National Assembly’s finance committee. Growth may miss this year’s target, Thoi Bao Kinh Te paper reported this week, citing an official study.