Customs sector removing difficulties, accompanying automobile industry

VCN - Speaking at the dialogue "Tax policies and the role of Customs to promote Vietnam's automobile industry" held in Hanoi on the morning of November 3, Deputy Director of General Department of Customs Luu Manh Tuong said: “The Customs sector is actively implementing the issued policies and removing arising difficulties to accompany the automobile supporting industry in accordance with the set target.”
Auto business recovers thanks to the government's stimulus policy Auto business recovers thanks to the government's stimulus policy
Automobiles import from Thailand increase by 100% in August Automobiles import from Thailand increase by 100% in August
Localisation rate of Vietnamese automobile industry remains low Localisation rate of Vietnamese automobile industry remains low
3215-2335-img-7741
Deputy Director of General Department of Customs Luu Manh Tuong spoke at the dialogue . Photo: Hong Van


Mr. Luu ManhTuong said the Government has set a target to build and develop the automobile industry to replace the importation and step by step proceed to exports. Despite some positive results, Vietnam’s automobile industry has yet developed as expected.

For tax policies in the field of automobile manufacture and assembly, Decree 122/2016 / ND-CP and Decree 125/2017 / ND-CP provide tax incentives for automobile manufacture and assembly. Of which, the import tax rate of 0% is applied for imported components that cannot be produced domestically.

To further promote the automobile industry, the Government issued Decree 57/2020 / ND-CP dated May 25, 2020 to amend and supplement articles of Decree 122/2016 / ND- CP and Decree 125/2017 / ND-CP on export tariffs, preferential import tariffs, list of goods and its flat tax, compound tax and out-of-quota import tax.

Decree No. 57/2020 / ND-CP provides incentives for raw materials, supplies and components for the production, processing (assembly) of supporting industrial products prioritized for development for the automobilemanufacture and assembly industry for the 2020-2024 period.

Decree 57/2020 / ND-CP effective from July 10, 2020, particularly article 7a effective from 1 January, 2020, not only brings import tax on imported componentsthat cannot be produced domestically to 0%, but also requires extremely low output in the first two preferential periods, paving the way for Vietnam's automobile industry to develop.

"This is a key factor contributing to promoting thesupporting industry in Vietnam to grow and get out of the gloomy situation in many years,” Mr. Tuong said.

3218-4756-img-7747
The Dialogue: Photo: Hong Van

Motivated by preferential policies specified in Decree 122/2016 / ND-CP, Decree 125/2017 / ND-CP and Decree 57/2020 / ND-CP, many enterprises have more opportunities to invest in manufacture and assembly line projects towards the strong development of the automobile supporting industry in Vietnam.

According to the General Department of Customs, during the implementation of the tax incentive program for automobile manufacture and assembly according to the Article 7a of Decree 125/2017 / ND-CP, 13 enterprises registered to join the program with the refunded import tax (tax incentive period from November 16, 2017 to December 31, 2019) of VND9,557 billion and the refunded tax amount (tax incentive period from January 1, 2020 to the end of June 30, 2020)of VND2,854 billion.

This total refunded tax amount was incurred at the Customs Departments of Hanoi, Hai Phong, Ha Nam Ninh and Quang Nam.

Also according to preliminary statistics from the General Department of Customs, as of October 15, the country imported 73,685 cars of all kinds valued at US$1.6 billion and auto components and accessories valued at US$2.86 billion.

The reduction of tax on raw materials, supplies and components for the production of supporting industrial products prioritized for the development of automotive manufacturing and assembly under Decree 57/2020 / ND-CP in the short term may reduce the revenue from import tax on raw materials, supplies and components, but will contribute to promoting the development of supporting industry enterprises.

Thereby, increasing revenue from other domestic taxes such as corporate income tax and value-added tax (VAT), contributing to creating jobs, ensuring social security, attracting investment in the supporting industry and improving trade balance and contributing to spillover and promote the development of other industries.

"Currently, the Customs sector is still actively implementing the issued policies and removing arising difficulties to accompany the automobile supporting industry to increasingly develop in accordance with the set target," Deputy Director General Luu Manh Tuong said.

Confirming that Decree 57/2020 / ND-CP is one of the powerful solutions to promote Vietnam's automobile industry, the leader of the General Department of Customs also stated that in addition to tax and fee policies, the development of the automobile industry also requires many other synchronous solutions such as: transport infrastructure, credit policies, list of automobile industrial support products, technology level, technical content, technology transfer, copyright cost, quality and environmental protection.

Along with the Government's determination, ministries and agencies have also actively implemented measures to support enterprises. However, in the process of implementing new regulations on tax policies, shortcomings and difficulties cannot be avoidable. Therefore, the General Department of Customs assigned the Customs Newspaper to coordinate with the Vietnam Automobile Manufacturers’ Association (VAMA) to organize the dialogue: “Tax policies and the role of Customs to promote Vietnam's automobile industry”.

Automobiles imported through HCM City ports decrease by nearly 20,000 units Automobiles imported through HCM City ports decrease by nearly 20,000 units

"At this dialogue, I hope that the state management agencies and automobile manufacturers and assemblers, automobile supporting industry enterprises, automobile importers and credit institutions will discuss frankly the implementation of tax policies and customs procedures, and propose solutions` to remove difficulties and problems, so that the tax policies continue to be a lever, contributing to promoting Vietnam's automobile manufacture and assembly activities to develop and compete fairly," said Deputy General Director Luu ManhTuong.

By Thanh Nguyen/ Huyen Trang

Related News

Kien Giang Customs’ revenue reaches over 190% of target

Kien Giang Customs’ revenue reaches over 190% of target

VCN – As of October 15, Kien Giang Customs Department collected VND 116.34 billion, reaching 193.89% of the target, the department reports.
Revise regulations on implementing administrative procedures under the National Single Window

Revise regulations on implementing administrative procedures under the National Single Window

VCN - On October 29, 2024, Deputy Director General of the General Department of Vietnam Customs Au Anh Tuan chaired a meeting to discuss, exchange and develop a plan to amend Decree 85/2019/ND-CP regulating the implementation of administrative procedures under the National Single Window, ASEAN Single Window and specialized inspection of imports and exports.

Latest News

Ha Nam Ninh Customs gathers feedback from the business community

Ha Nam Ninh Customs gathers feedback from the business community

VCN – According to Ha Nam Ninh Customs Department, considering enterprises as cooperative partners not only facilitates import and export activities but also contributes to improving the investment and business environment, meeting integration requirements.
Facilitating trade and bolstering customs enforcement at Vinh Xuong border crossing

Facilitating trade and bolstering customs enforcement at Vinh Xuong border crossing

VCN - With the characteristics of managing international border gates with both waterways and roads, Vinh Xuong International Border Gate Customs Branch (An Giang Customs Department) always has flexible solutions to ensure both convenience and strict control of import and export goods.
3 items have a big impact on the budget revenue of Ho Chi Minh City Customs

3 items have a big impact on the budget revenue of Ho Chi Minh City Customs

VCN - Automobiles, petroleum, and steel are three items that account for nearly 35% of the total state budget revenue of Ho Chi Minh City Customs Department. Therefore, fluctuations in these revenue sources will greatly impact the state budget revenue of the entire Department.
Quang Ninh Customs collects 85.75% of the budget revenue through the seaport area

Quang Ninh Customs collects 85.75% of the budget revenue through the seaport area

VCN - In the first 9 months of 2024, Quang Ninh Customs Department collected VND 13,885.23 billion in revenue collection, reaching 111.08% of the assigned estimate (VND 12,500 billion), reaching 106.81% of the target assigned by Quang Ninh province (VND 13,000 billion), an increase of 8.67% over the same period in 2023

More News

Regulating goods across Huu Nghi International Border Gate during peak times

Regulating goods across Huu Nghi International Border Gate during peak times

VCN – In order to reduce the pressure on customs clearance of import and export goods for the international border gate pair during peak times, the management agency of Lang Son (Vietnam) has just discussed with the management authority of Pingxiang (China) to strengthen coordination in regulating the means of transporting goods of enterprises on both sides.
Quang Ninh Customs seeks solutions to promote import and export

Quang Ninh Customs seeks solutions to promote import and export

VCN - Quang Ninh Customs Department has made efforts to synchronously deploy solutions to accompany, support and resolve difficulties for businesses, contributing to improving import and export activities through the area.
Businesses get a fair hearing under Customs

Businesses get a fair hearing under Customs' new 'three no' rule

VCN - The General Department of Vietnam Customs requires units to implement the 3 no principles: "don't say no, don't say difficult, and don't say yes but don't do it" when businesses have recommendations and proposals.
Khanh Hoa Customs reaches revenue target 1 quarter early

Khanh Hoa Customs reaches revenue target 1 quarter early

VCN - Many key import items increased sharply, along with efforts in trade facilitation, tax debt collection, so in just 9 months of 2024, Khanh Hoa Customs Department completed the state budget revenue target.
WCO Permanent Technical Committee Meeting in Belgium: The managerial mark of the Vietnamese customs representative

WCO Permanent Technical Committee Meeting in Belgium: The managerial mark of the Vietnamese customs representative

VCN - For 3 days (from 23-25/10/2024), at the headquarters of the World Customs Organization (WCO) in Brussels (Belgium), the 245th/246th meeting of the Permanent Technical Committee (PTC) was successfully held under the chairmanship of Ms. Nguyen Thi Vinh Hoai, Counselor, Embassy of Vietnam in Belgium, representative of Vietnam Customs, Chairwoman of PTC.
Launch of the “Proud of 80 years of construction and development of Vietnam Customs” contest

Launch of the “Proud of 80 years of construction and development of Vietnam Customs” contest

VCN - Towards the 80th anniversary of Vietnam Customs' tradition (September 10, 1945 - September 10, 2025), the General Department of Vietnam Customs (GDVC) launches the “Proud of 80 years of construction and development of Vietnam Customs” contest.
Cat Lai Port sees over 1,000 export shipments cleared by customs each day

Cat Lai Port sees over 1,000 export shipments cleared by customs each day

VCN - The volume of goods exported through Cat Lai port is showing signs of increasing sharply in the last months of 2024.
Quang Ninh Customs: Innovation in developing Customs-Business partnership

Quang Ninh Customs: Innovation in developing Customs-Business partnership

VCN - Quang Ninh Customs Department is determined to improve the quality of Customs-Business partnership, with practical actions in supporting and accompanying businesses.
Nine Customs brokers may be suspended from operations

Nine Customs brokers may be suspended from operations

VCN – HCM City Customs Department has announced that nine HCM City-based customs brokers may be suspended from operations because they have not reported their operations for three consecutive periods.
Read More

Your care

Latest Most read
Ha Nam Ninh Customs gathers feedback from the business community

Ha Nam Ninh Customs gathers feedback from the business community

VCN - Ha Nam Ninh Customs Department has provided many policies and solutions to create favorable conditions for enterprises towards the goal of building Digital Customs, Smart Customs, thereby reducing customs clearance time, saving costs for enterprises
Facilitating trade and bolstering customs enforcement at Vinh Xuong border crossing

Facilitating trade and bolstering customs enforcement at Vinh Xuong border crossing

Vinh Xuong International Border Gate Customs Branch (An Giang Customs Department) always has flexible solutions to ensure both convenience and strict control of import and export goods.
3 items have a big impact on the budget revenue of Ho Chi Minh City Customs

3 items have a big impact on the budget revenue of Ho Chi Minh City Customs

VCN - Automobiles, petroleum, and steel are three items that account for nearly 35% of the total state budget revenue of Ho Chi Minh City Customs Department. Therefore, fluctuations in these revenue sources will greatly impact the state budget revenue of
Quang Ninh Customs collects 85.75% of the budget revenue through the seaport area

Quang Ninh Customs collects 85.75% of the budget revenue through the seaport area

In the first 9 months of 2024, Quang Ninh Customs Department collected VND 13,885.23 billion in revenue collection
Regulating goods across Huu Nghi International Border Gate during peak times

Regulating goods across Huu Nghi International Border Gate during peak times

VCN - Huu Nghi - Huu Nghi Quan International Border Gate pair, as an important traffic route connecting the two countries, with a large volume of trade, plays an active role in promoting economic development of both sides.
Mobile Version