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Officers of the Cai Mep Customs Branch instruct procedures to enterprises. Photo: N.H

Import and export turnover plunges

According to General Statistics Office, industrial production nationwide decreased by 6.3% in the first two months of 2023. Most industries, including textiles, steel, mobile phones and automobiles, saw negative growth. As a result, the import and export turnover plunged 13.2% year-on-year to US$ 96. The import turnover fell by 16% to US$ 46.62 billion; the export turnover decreased by 10.4% to US$ 49.44 billion.

The data has also reflected a gloomy picture of seaport import and export activities. According to the Department, in the first two months of the year, the trade in goods dropped 32% to US$ 3.32 billion. Likewise, the export turnover plunged 53% to US$1.286 billion compared with the previous year; the import turnover dropped 6% to US$ 2.03 billion.

The sharp decrease in import and export turnover has pressured the Department's revenue collection tremendously. As a result, until the end of March, the total revenue only reached VND 2,584 billion or 69% of the same period in 2022, meeting 12% of the target. The items that saw a decrease in revenue mainly are chemicals, iron and steel, machinery and equipment.

The taxable import turnover of chemicals in the first two months fell 10% to US$71 million compared with the same period in 2022, leading to a decrease in the revenue from this item by 7% to VND 169. The taxable import turnover of steel declined 38% to US$ 184 million, leading to a decrease in revenue from this item by 36% to VND426 billion. The taxable import turnover of machinery and equipment went down 16% year-on-year to US$ 33 million. As a result, the tax receivable decreased by 8% year-on-year to VND 89 billion.

Supporting enterprises

Facing the decrease in import and export turnover, Ba Ria-Vung Tau Customs Department determines that support to enterprises is one of the key solutions to achieve the highest revenue. Accordingly, leaders of customs branches under the Ba Ria-Vung Tau Customs Department have grasped the situation to remove difficulties for enterprises.

For example, the Manager of Cai Mep Seaport Customs Branch, Tran Cong Tuan, has contacted and worked with seven major enterprises to grasp the operation of enterprises. Most enterprises said that due to the economic crisis after the Covid-19 pandemic, the number of orders dropped sharply, so they had to reduce production scale. Enterprises also said that the import and export situation may face difficulties for at least the first six months of 2023 when consumer demand has not recovered, and the conflict between Russia and Ukraine is still unpredictable.

Phu My SeaPort Customs Branch also worked with six local enterprises. They also said that they would try to maintain operations as, in 2022, it is difficult to grow.

Ba Ria-Vung Tau Customs Department and its customs branches have facilitated enterprises and supported them in restoring business production. Especially, officers have worked overtime to process enterprise procedures, even at weekends and nigh. The Department also instructed and accompanied enterprises via phone.

According to customs branches' leaders, enterprises' problems have been removed immediately by the customs. In addition to organizing Customs-Business Conference, customs branches have arranged for officers to be on duty at the office. Furthermore, many branches have set up Zalo groups to exchange information and contact the leaders. Through these groups, Customs has notified new regulations to businesses.

To improve compliance with tax and customs laws and reduce the inspection rate for imported and exported goods and costs and customs clearance time, in 2022, the Department signed a Memorandum of Understanding on a Pilot program to support and encourage businesses to comply with customs laws for four enterprises voluntarily. Enterprises participating in the program are also given priority to guide and handle problems in the customs process, thereby reducing law violations and improving compliance; become a reliable partner of Customs in import-export activities, and goods transit, thereby contributing to trade facilitation and enhancing the competitiveness of enterprises. In 2023, the Department expects to sign the Memorandum of Understanding with one or two businesses.

The Department's efforts in reforming administrative procedures and supporting businesses for many years have been highly appreciated by the local government and the business community. Mr Le Ngoc Khanh, Vice Chairman of the People's Committee of Ba Ria - Vung Tau province, said that the Department is one of the leading departments for developing administrative procedure reform and trade facilitation. As a result, the Department reached a Customer Satisfaction Index of over 95%, ranking second among Ba Ria-Vung Tau-based central agencies in 2021.