Dong Nai: good revenue thanks to recovery in production, export

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Dong NaiCustoms officers inspect import and export goods. Photo: N.H

Production and export recover

According to Dong Nai Statistics Department, in the first fivemonths of 2021, the index of industrial production (IIP) rose by 6.94% year-on-year. This is a good growth rate amid the Covid-19 pandemic. The whole processing industry has 19 of 22 manufacturing industries seeing better growth than the first five months of 2020. Ofwhich, cigarettes increased by 7.86%; textiles 7.12%; clothing production 7.67%; production of leather and related products 12.99%; chemicals increased by 7.84%; rubber and plastic 8.61%; prefabricated metal production 8.72%,and furniture production 16.89%.

Dong Nai Statistics Department said the growth is due to the demand for products, especially export orders of the above items, showing positive signs when firms have actively sought export contracts from EU countries and the US. The markets of these countries also had a positive recovery for textile products, leather shoes, rubber products, furniture, etc. Although the Covid-19 pandemic still has complicated developments in the world, many firms in these industries have fully exploited their advantages in market channels to seek orders and partners, helping to get more large orders.

Vietnam Wacoal Co., Ltd rose by 47%, Fashion Garment 2 Co., Ltd 32%, Vietnam Dona Standard Footwear Co., Ltd 22%, Chang Shin Vietnam Company 36%, Pousung Footwear Co., Ltd 16%, Hometec LLC Co., Ltd 7%, Booss Co., Ltd 7%, and Tai Yu Sofa Co., Ltd by 9% year-on-year.

From the increase in orders, import and export turnover in Dong Nai also recorded growth. Export turnover in the first five months of 2021 is estimated at US$9.6 billion, up more than 32% year-on-year. Of which, exports of wood products were estimated at US$910 million, up nearly 73%; textile and garment was estimated at US$684 million, up nearly 4%; footwear was estimated at US$1,934 million, up nearly 12%; fibers, textile yarns of all kinds was estimated at US$724 million, up 70% and computers, electronic products and components was estimated at US$458 million, up 77%.

Import turnover also jumped by about 41%, estimated at nearly US$8 billion due to the increased demand for raw materials for production of firms. Imported products with high growth included chemicals, plastic materials; fibres, textile yarns of all kinds; fabrics of all kinds; computers, electronic products and components; machinery and equipment with a growth rate ranging from 10% to 100%.

Positive results

The recovery of production activities and growth of import-export turnover have helped Dong Nai Customs Department achieve positive results in State budget revenue. As of May 15, total budget revenue of the unit collected VND7,689 billion (including two areas of Dong Nai and BinhThuan), up 33% compared to the same period last year and reaching 52% of the planned target in 2021. In Dong Nai province alone, the revenue reached VND7,126 billion, up nearly 36%. Dong Nai Customs Department estimates by the end of June 2021, the department’s revenue will hit VND9,324 billion, an increase of 38% year-on-year, helping to increase the total revenue of the unit to VND10,150 billion, up 36%.

Deputy Director of Dong Nai Customs Department Nguyen PhucTho said the unit has implemented many solutions to facilitate trade, improve State management efficiency, combat revenue loss, focusing on key commodity groups: high-risk goods in terms of HS code, tax rate, value, quantity; duty-free, tax-reduced and non-taxable goods; tax refund, value, tax rate, HS code and C/O. Anti-revenue loss is continuously strengthened.

Dong Nai Customs Department also urges tax debt recovery, always proactive in tax debt control to prevent outstanding debts from those who run away, go missing, and go bankrupt.

For the raising of revenues, the unit has strengthened dialogue and communication activities with firms to guide the State management policy documents in the field of customs, especially administrative reform to create favorable conditions for firms in import and export activities.