Logistics development and the role of the Customs

Hiep Phuoc Port - Ho Chi Minh City is invested with modern equipment but the goods through the port are limited. Photo: T.H.

In the past, the customs sector in general and Ho Chi Minh Customs Department in particular have always accompanied the seaport enterprises to create favorable conditions for import-export activities and to reduce costs for businesses. For example, regarding the issue of specialized inspection of imported goods, in addition to the proposal to reduce import and export permits, export and import conditions to comply with the Enterprise Law in 2016, Ho Chi Minh Customs Department also coordinate with port-business enterprises to deploy and arrange the location of specialized inspection at the border gate...

Implementing the project of Ho Chi Minh Customs Department on checking the cargo advance screening, Ho Chi Minh Customs Department has actively worked with the port-business companies to conduct the imported container advance screening right after unloading cargo to save time and money for the enterprises; To continue implementing the national one-stop mechanism in the procedures for exit and entry of ships. So far, there are 631 shipping agents registered in Ho Chi Minh City to carry out electronic procedures for ships on the national one-stop system.

Especially, from the beginning of 2018, Ho Chi Minh Customs Department has piloted the implementation of automatic customs control and management system for goods through the customs supervision area under the scheme on management and supervision of customs at seaports and airports according to the Plan 4098/KH-TCHQ of the General Department of Customs and the Decision 2722/QD-BTC of the Ministry of Finance.

Up to now, Ho Chi Minh Customs Department has deployed at 4 ports, including Bong Sen Port, SP-ITC Port, Tan Cang-Hiep Phuoc Port, Phuoc Long Port (ICD1 and ICD3). Initially, the implementation has achieved some encouraging results, bringing many advantages for customs agencies, port-business companies and import-export enterprises, which are highly appreciated by the business community. As of March 18, 2018, there were about 9,849 containers, 4,916 bales and 216,768 tons of bulk cargoes and about 2,407 customs clearances that have been declared and automatically confirmed through the monitoring area on the automatic customs supervision system.

According to the relocation planning of port warehouses and yards in HCM City, most traditional ports in the inner city will be transformed and relocated, such as Tan Cang port will be moved to Cat Lai, Ba Son port will have its functions converted, Saigon port will be moved to Hiep Phuoc, Tan Thuan Ben Nghe port will be relocated, IDC Phuoc Long ports will have changed functions ... However, up to now, the relocation or allocation of new land fund for the customs office has not been available yet or delayed. For example, 3 units (Customs Control Team, Sai Gon Port Border gate Customs Department Zone 2, Hi-Tech Park Customs Sub-Department) do not have their office. And some units are jointly headquartered with the port-business companies, such as Sai Gon Port Border gate Customs Department Zone 1; Sai Gon Port Border gate Customs Department Zone 3; Customs Branch of Hiep Phuoc port border gate...

During the process, realizing a lot of inadequacies in the development of the port system and logistics services, Ho Chi Minh Customs Department has proposed the HCM City leadership to support the import and export activities in the area. Recently, in order to implement the automatic customs clearance and supervision system at seaports and airports (VASSCM) to facilitate the enterprise community and to increase the competitiveness of enterprises in the trend of industrial revolution 4.0.

At Cat Lai port, overloaded goods, local congestion occur on Tet holidays, due to unimproved transportation infrastructure in Cat Lai port. Moreover, there are no loading and unloading storage around the port area as well as the logistics services meeting the needs of import and export goods. Cat Lai Port has not applied the automatic customs supervision management system leading to congestion at port and yard monitoring stage.

To reduce the load at this port, Ho Chi Minh Customs Department has coordinated with ports to conduct goods clearance out of working hours, recommended regulating the goods at the neighboring ports, and actively prepared to apply the automatic customs supervision management system at Cat Lai Port...

Ho Chi Minh Customs Department has suggested that HCM City will create conditions for Hiep Phuoc Port Complex to expand its activities in the field of logistics and value-added services for imported completely assembled cars; Providing services of warehousing, registry, customs, technical inspection,… to meet the rapidly growing demand of imported car market in Vietnam; to develop Hiep Phuoc port complex as the biggest exploiting and importing center of automobile in HCM City in particular and in the South in general. Planning on the construction of ports, and value-added services in order to receive domestic and international tourist ships (It is forecasted that by 2020, the number of passengers will be 326,000 visits/year); Constructing plans and implementing regulations of cargo through ports to reduce local congestion in Cat Lai port area, such as regulating cargoes to the neighboring ports: SP-ITC, Hiep Phuoc, ICD Phuoc Long, VICT...

Regarding other interconnected infrastructure projects to Hiep Phuoc Port, Ho Chi Minh Customs Department recommends competent authorities to plan and complete other connection infrastructure projects to the port urban area (belt road No. 3, belt road No. 4, Soai Rap channel dredging, upgrading inland waterway transport...) with investment progress in line with demand for use to increase the value of the projects, which is a source of income for the BT project. To create conditions for the development of river transport and promote the potential of the inland waterway transport of river and canals systems in the region in order to meet the volume of goods (excluding liquid cargoes), which is 100 million ton/year and 326,000 passengers/year by 2020.

Together with the above recommendations, in order to improve the effectiveness of customs management, develop logistics activities, customs agents and procedures for specialized goods, facilitating enterprises in export-import, production and investment activities, Ho Chi Minh Customs Department is studying the topic of "Logistics services, customs agents and procedures for specialized import and export goods". This subject is in the direction of the People's Committee of HCMC to develop logistics services in Ho Chi Minh City and its neighboring areas.

Mr. Pham Anh Tuan, the representative of Portcoast Consultant Corporation

The uneven distribution of goods among the seaports in the group is affecting the efficiency of exploiting the infrastructure of the entire seaport group No. 5. Currently, the goods are concentrated in Cat Lai port while at the Hiep Phuoc port, there are very few goods, Cai Mep - Thi Vai port exploits only 30% of its total capacity. This situation leads to the congestion of goods in Cat Lai, traffic congestion in Ho Chi Minh City ... In terms of operation, there is no comprehensive management agency of operating seaport; Not to take advantage of the newly invested sea ports to receive large ships; the administrative procedures at seaports are not really one-stop; and information technology has not effectively assisted the port operation.

Ms. Pham Thi Bich Van, Deputy Marketing Director of Saigon Newport Corporation:

Currently, a lot of goods have been stuck in Cai Mep, because 85% of goods to Cai Mep were transferred by barges to Ho Chi Minh City. The logistic facilities are mainly located in the area around Cat Lai port, ICD in Thu Duc Area, Song Than area and the vicinity of Dong Nai bridge. This concentration put great pressure on the traffic system, causing traffic jams, increasing costs for enterprises using the services. Moreover, the logistics facilities are fragmented and do not form a concentrated place, so it is dispersed and difficult to develop infrastructure for increasing the efficiency of logistics is.

Not only in HCMC, ports and logistics services in some neighboring provinces are also inadequate. In Binh Duong, the companies are developing strongly with large import and export goods. However, the number of ports is very low, the goods of the business are mainly delivered to the ICD and Ho Chi Minh Port. Currently, Binh Duong has 3 ports, of which only Binh Duong Port is able to receive ships of 5,000 tons, and its capacity is 70-75%; the other two ports only can receive barges of 2,000 tons. In fact, logistics services are developed everywhere but without linkage. Meanwhile, the essence of logistics is the development of the chain. There must be linkage, development in chain to be able to grow and reduce costs at some stages.