Minister DinhTien Dung meets with Ba Ria – Vung Tau province on State revenue and anti-smuggling

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The Minister of Finance DinhTien Dung delivered a speech at the meeting. Photo: Nguyen Hue

Developing aneconomy that does not depend on petroleum

So far, actual economic growth of the province has proved this policy. Both proportion and absolute amount of revenue from crude oil to the province’s budget has decreased. If the revenue from oil of BR-VT province in 2018 was VND 36,000 billion, it was only VND 26,000 in 2019 and is expected to VND 19,000 VNF in the nest year while domestic revenues have been growing. This proves the province’s economic growth is sustainable and comes from internal factors,” said Nguyen Hong Linh

According to Nguyen Thanh Long, acting chairman of BR-VT provincial people’s committee, the proportion of domestic revenueisincreasing in total provincial revenues, meanwhile the proportion of revenue from crude oil and imports and exports tends to decree. Specifically, revenue from oil in 2016 was VND 22,485 billion (accounting for 36.4 percent of the province’s total budget revenue), it is expected to be VND 19,600 billion in 2020 (accounting for 25.8 percent of the province’s total budget revenue), a reduction of 10.6 percent from2016. The revenue from imports and exports was VND 16,492 billion (accounting for 26.7 percent of the province’s total budget revenue) and is expected to be VND 20,000 billion in 2020 (accounting for 26.3 percent of the province’s total budget revenue, a reduction of 0.4 percent over 2016. The domestic revenue in 2016 reached VND 22,724 billion (accounting for 36.8 percent of the province’s total budget revenue, it is expected to be VND 36,443 billion in 2010 (accounting for 47.9 percent of the province’s total budget revenue), up 11.1 percent over 2016.

Appreciating BR-VT’s policy on economic development, Minister of Finance Dinh Tien Dung said this policy ensured the sustainable development of the province and matched the Government’s policieson independent economic development basedon domestic economic growth potential and business and production capacity. The proportion of oil revenue of total State budget revenue is decreasing. If five years ago it amounted to below 10 percent of total State budget revenue, in the lastthree years, it only accounted for about 3 percent and is expected to be below 3 percent in 2020.

Appreciating the results that BR-VT province has achieved in recent years, especially in finance and budget, but Minister Dinh Tien Dung commented that the domestic revenue growth of BR-VT for 2016 – 2020 only reached 11.1 percent; lower than the country’s average rate and other localities. Thus, BR-VT province should analyse the revenue structure, rate and taxes to evaluate its economic status to develop effective solutions. He supported BR-VT province’s policy on the development of Cai Mep - Thi Vai port cluster to become an international deep-water port cluster eligible for competing with other countries in the region and a motive for regional economic development

Key area for smuggling and trade fraud

According to areport from BR-VT provincial steering committee 389, smuggling and trade fraud in the province is increasing with unpredictable tricks and methods, especially smuggling and illegal sea transportation of petroleum despite plans and strict directions fromthe central to the local. In 2019, Coast Guard, Border Guard and Customs detected and handled 16 cases with 29 offenders of transporting petroleum of unknown origin, and confiscated more than1.6 million litres of DO oil and 3 million litres of gasoline. RON 95, destroyed 10,000 litres of waste oil, imposed administrative fines of more thanVND 750 million, sold confiscated goods to remit to the public fund of someVND 60 billion.

Besides the hot spot of petroleum smuggling, BR-VT province is also considered a key area for smugglers taking advantage of transit and transit policies of goods because Cai Mep – Thi Vai port area is one of the biggest transshipment and transit port clusters in the country. The Customs authority carries out procedures for the transit regime, mainly passing through the borders of Vinh Xuong (An Giang), Thuong Phuoc (Dong Thap) and Moc Bai (Tay Ninh). In 2019, the BR-VT Customs Department handled 554 violations of the customs field, including three cases involving transit goods andinfringing goods were mainly household goods, second hand electronics, alcohol, waste and cigarettes; and imposed administrative sanctions intwo cases with a total fine of VND 18 million; and is handling one case.

Regarding drugs, according to BR-VT provincial steering committee 389, from the beginning of the year until now, authorities in the province have detected 441 cases with 650 offenders related to trading andstoring of narcotic substances, imposed administrative sanctions in22 cases with total fines of more thanVND 100 million andprosecuted 416 cases with 502 offenders.

Director General of Customs Nguyen Van Can talked about anti-smuggling in BR-VT province. Photo: Nguyen Hue

According to the Director General of Customs Nguyen Van Can, BR-VT province is a high-risk area for smuggling and trade fraud due to Cai Mep port cluster, which is a deepwater port as a gathering place of imported goods, transshipment and transit goods. Regarding risk of smuggling from transit goods, there is now a situation that goods in transit as infringing goods have left Vietnamese territory and then seek to return. Therefore, it is recommended forces in the area be on high alert to prevent prohibited goods from entering Cai Mep port.

Director General Nguyen Van Can said theCustoms sector is also strictly controlling the transit regime of goods, even transit goods brought into bonded warehouses must declare in detail, if the goods are not detailed, they will be inspected immediately at entry stage. Not only goods in transit, many export items also contain risks of origin. In some localities, the Customs authority hasworkedwith the other forces to detect many cases of illegal transport of goods to take advantage of Vietnamese origin to export to foreign countries.

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At the meeting, leaders of the Ministry of Finance, the General Department of Customs, and the General Department of Taxation agreed on many proposals of BR-VT province related to the finance - budget, anti-smuggling and trade fraud and solutions to develop Cai Mep – Thi Vai port cluster.