HCM City’s revenue drops over VND 19,000 billion

Auto imports increase HCM City’s revenue

The import turnover of cars across HCM City Seaport in the first 11 month of the year drops, leading to the year-on-year decrease of over VND900 billion in revenue of this item.

Revenue falls due to the decrease in import turnover of major import items

According to HCM City Customs Department, as of December 12, the department’s revenue dropped 14.42% or VND 19,378 billion year-on-year to VND114,990.4 billion, meeting 78.87% of the target.

HCM City Customs Department said that the reduction of VND 19,378billion in revenue resulted from the decrease in the trade in goods in 2023. Specifically, the turnover in the 11 months of the year reached US$110.70 billion, including taxable turnover of US$34.15 billion, down 15.26% over the same period last year; the revenue declined 14.42% or VND 19,378billion year-on-year.

The tunover of goods and product groups accounting for a large proportion of the total taxable turnover and being cleared at HCM City Seaport plunges.

Specifically, although imported petroleum products increased in quantity, they decreased in value, so the revenue from this item plummeted. In the first 11 months of 2023, the Department has cleared for 4,416,631 tons of petroleum, with taxable turnover of VND3.7 billion, an increase of 22.1% in volume, a decrease of 2.3% in value. The revenue dropped 13.09% year-on-year to VND15, 558.3 billion.

The revenue from machinery, equipment, tools, and other spare parts reduced by more than VND1, 000 billion. Specifically, taxable turnover fell 16.8% in value to US$4.09 billion; the revenue deceased by 8.92% to VND10,364.4 billion compared to the same period in 2022.

The volume of imported cars also saw the sharp decrease. In the first 11 months of the year, the volume of imported cars reached 55,038 cars, with taxable turnover of USD1.27 billion, down 22.8% in volume and 13.3% in value. The revenue went down 3.74% year-on-year to VND23, 638.6 billion.

Raw materials for production plummet

The raw materials and supplies imported for production cleared through HCM City Seaports also decreased significantly, affecting the state revenue of the Ho Chi Minh City Customs Department.

Accordingly, the volume of imported plastic raw materials reached 1,471,993 tons, with taxable turnover of US$1.87 billion, down 12.1% in volume and 28.2% in value; the revenue declined 27.33% to VND4,598.1 billion compared to the same period in 2022.

Along with that, the import taxable turnover of the group of imported computers, electronic products and components reached US$1.86 billion, down 27.4% in value; the revenue dropped 29.95% to VND4,496.7 billion compared to the same period in 2022.

The volume of imported iron and steel of all kinds reached 2,733,965 tons, with taxable turnover of US$1.77 billion, an increase of 11.3% in volume, a decrease of 17.2% in value, the revenue fell 14.52% to VND4, 305.6 billion.

The taxable turnover of imported chemical products reached US$1.48 billion, down 23.3% in value; the revenue declined 20.8% to VND3, 970.8 billion VND.

The taxable import turnover of pharmaceuticals soared, leading to the surge in the department’s revenue of about VND500 billion. Accordingly, the import turnover of the item reached US$2.5billion, an increase of 16.2% in value; the revenue increased by 17.33% to VND3,162.1 billion compared to the same period in 2022.

According to the department’s assessment, the economic growth in the first half of 2023 did not meet expectations, affecting the state revenue from imports and exports. On June 30, the Government issued Decree No. 44/2023/ND-CP stipulating the VAT reduction policy under Resolution No. 101/2023/QH15 of the National Assembly. The 2% VAT reduction is implemented July 1 to December 31, 2023 and will not expand the subjects eligible for VAT reduction. As of October 31, the VAT revenue decreased under Resolution No. 43/2022/QH15 in 2023 is estimated at VND1,773 billion.