Ho Chi Minh City: The stable growth of import and export goods positively affects revenue

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Import and export goods at Cat Lai port. Photo: T.H

China a leading market

According to HCMC Statistics Department, in the first six months of 2019, the export turnover of enterprises in the city reached US$ 19,619.3 million, up 9.2 percent over the same period last year, of which export turnover excluding crude oil reached US$ 18,453.8 million, up 10.1 percent over the same period last year. The export turnover of exporting enterprises in the city through HCMC port (including crude oil) in the first six months of 2019 reached US$ 18,027.6 million, a year-over-year increase of 10.1 percent.

Regarding the export market in the first six months of 2019 of enterprises in the city through Saigon ports, the first rank was the Chinese market with export turnover of US$ 3,561.2 million (accounting for 19.8 percent of export value), up 14.5 percent compared to the same period in 2018. However, export goods to Japan reached US$1,562.4 million, down 1.5 percent compared to the same period in 2018.

Goods imported by enterprises in HCMC also grew well. The total import turnover of the enterprises through ports in HCMC reached US$ 20,460.8 million, up 4.2 percent over the same period last year. Of which, the major import commodity group was material fuel, reaching US$ 8,002.1 million (accounting for 40.1 percent), down 7.1 percent compared to the same period of 2018. This result shows that many enterprises are likely use of domestic materials instead of imported fuel. The group of machinery, equipment and spare parts reached US$ 9,349.2 million (accounting for 44.9 percent), a year-over-year increase of 13.2 percent; the consumer goods group reached US$ 1,227.0 million, up 27.2% over the same period last year.

According to the HCMC Customs Department, the US-China trade war has become increasingly complex, directly impacting the global supply chain and financial investment. Vietnam has an increasingly important position in the global supply chain system. Trade conflict between the United States and China is a threat but also an opportunity for Vietnam's economy.

Affecting budget revenue

The import-export goods of enterprises in HCMC increased sharply, positively affecting the state budget revenue. As of June 30, 2019, HCMC Customs Department collected VND 57,913 billion, reaching 53.22 percent of the estimate and 51.29 percent of the desired target (VND 112,900 billion), an increase of VND 8,355 billion compared to the same period in 2018.

According to the analysis of HCMC Customs Department, the import and export turnover was lower than the target ofincreasing over 8 percent compared to 2018 (while the turnover in the first six months of 2019 only increased by 4.23% compared to the same period in 2018). Thus, the budget collection in 2019 will face difficulties and challenges without strategic solutions.

According to HCMC Department of Customs, although the state budget collection and other duties in the first six months of 2019 performed well, the revenue was mainly from cars, motorbikes and some other product groups. For example, only revenue from imported cars and motorbikes was more than VND 8,500 billion. However, the number of imported cars and motorbikes only increased sharply in the first four months of the year, then the growth rate began to decrease. Specifically, in May and June 2019, import turnover of cars of less-than 9 seats and 2-wheel motorcycles started to decrease compared to the first four months of 2019, so the state budget revenue in June 2019 only less than VND 8,800 billion while it was more than VND10,000 billion.

For domestic revenues, although the growth rate was not as high as the revenue from import and export activities, it was quite good thanks to the prosperous activities of enterprises. The total revenue of HCMC Tax Department in the first six months of 2019 was VND 133,774 billion , reaching 46.08 percent of the 2019 estimate, an increase of 2.22 percent from the same period in 2018.

Determining budget revenue was the driving force for the completion of the city's socio-economic development targets and implementing the assigned political tasks, the HCMC Customs Department and the HCMC Tax Department are continuing to synchronize management functions to ensure effective and proper collection, creating a fair and equitable environment for enterprises in fulfilling their obligations to the budget. The administrative reform has also been focused to create favourable conditions for enterprises in production and trade activities and increase revenue for the city.

The total number of enterprises participating in customs procedures at Ho Chi Minh City Customs Department in the first six months of this year reached 42,723 enterprises, up 12 percent compared to the same period last year. Of which, the number of importing enterprises was 36,300, up 13.57 percent and exporting enterprises was 15,731, up by 10.27 percent compared to the same period last year.

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The number of import and export customs declarations processed at the HCMC Customs Department was 1.56 million, up 19.14 percent from the same period last year. Of which, the number of import declarations was 825,000, up by 17.13 percent and export declarations was 737,000, up 21.48% compared to the same period in 2018.