Skip to content
Research Article Open access CC BY 4.0

The Impact of Production Tax on Agriculture Sector in Vietnam: A Computable General Equilibrium Approach

Nguyen Thi Thanh Truc

Asian Research Journal of Mathematics · pp. 1–13 · Published 20 Aug 2016

10.9734/ARJOM/2016/27198

Abstract

A small fluctuation in the production tax may cause enormous changes in most of remaining economic value. Especially in Vietnam, a developing country, the effect of this problem in terms of agriculture sector should not be ignored. This paper would like to study this effect based on the computable general equilibrium model approach. With the latest Input – Output table of Vietnam in 2007, this paper conducts the Computable General Equilibrium (CGE) model for six simulations (increasing the agricultural production tax rate by 5%, 10%, 20% and decreasing by 5%, 10%, 20%). Consequently, we can find out that an increase of 5% of production tax amount in agriculture activity will lead to an increase of Government surplus of 111.117 billion Vietnam Dong (VND), as well as decrease the social welfare by 1918.705 billion VND. On the other hand, a decrease of 10% in this production tax will be resulted in the Vietnamese government’s deficit of 218.628 billion VND while the general social welfare increases by 3899.943 billion VND.

Vietnam agriculture sector production tax simulation Computable General Equilibrium (CGE) model social welfare Government deficit

Cited by 1

Impact of removing industrial tariffs under the European–Vietnam free trade agreement

L. T. N. Phát, Hanh Kim Nguyen · Journal of economic development · 2019

Article metrics

Real usage data collected on this platform.

0

Page views

0

PDF downloads

0

Outbound clicks

1

Citations

Views by country

Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".

No views recorded yet.

Traffic sources

Referring site, by host.

No traffic recorded yet.

Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.