Ho Chi Minh City: FDI enterprises are the main driving force of import-export growth

	Deploying automated customs supervision at air cargo warehouse at Tan Son Nhat International Airport
	Investment in HCM City’s industrial, processing zones up
	Ho Chi Minh City eyes 108 billion USD in exports by 2030

FDI enterprises look up information at the Investment Goods Management Customs Sub-Department (Ho Chi Minh City Customs Department). Photo: T.H

Both exports and imports increased

The Covid-19 pandemic still has a huge impact on all countries in the world; some countries have closed their borders. However, HCM City's export of goods still achieved positive growth. In the first four months of 2021, HCM City's total import-export turnover increased by 21.3% over the same period last year, of which exports increased by 13.9% and imports increased by 27.7%.

Notably, the foreign-invested sector is considered the main driver of the city's import-export growth with export turnover increasing by 20.5% and imports increasing by 11.7% over the same period.

In the first four months of 2021, the export turnover of goods by enterprises at border gates across the country reached US$15,470.5 million, up 13.9% over the same period last year. Exports excluding crude oil alone reached US$15,320.6 million, up 17.9% over the same period last year.

The total export turnover of goods by enterprises through the HCM port (including crude oil) in the first four months of 2021 reached US$14,204.7 million, accounting for 91.8% of the total export value at border gates across Vietnam and increased 12.8% over the same period last year.

Of which, the state economic sector reached US$338.8 million, down 58.7%; non-state economic sector reached US$3,908.7 million, up 11.4%; the foreign-invested economic sector reached US$9,957.2 million, up 20.5%.

Regarding the export market of goods, China is still the largest export market of HCM City's enterprises with export turnover in the first four months of 2021 reaching US$3,525.2 million, up 11.0% over the same period of 2020, accounting for 24.8% of export proportion.

Following is the US market reaching US$2,195.1 million, up 4.9% over the same period, accounting for 15.5% of the export proportion. Third, exports to Hong Kong market reached US$1,517.2 million, up 105.0% over the same period, accounting for 10.7% of the export proportion.

High budget revenue

According to the People's Committee of Ho Chi Minh City, the budget revenue of Ho Chi Minh City both domestic and import-export increased in the first four months of the year. The reason is a high increase in imported goods, especially imported raw materials for production and business of enterprises. This shows that the production and business activities of enterprises are recovering and developing.

It is estimated that in April 2021, the total import turnover of HCM City enterprises at border gates across Vietnam in the first four months of 2021 will reach US$19,950.6 million, up 27.7% over the same period last year.

Of which, the group of raw materials reached US$5,650.4 million, up 24.7% over the same period in 2020, accounting for 34.5%. The group of machinery, equipment and spare parts reached US$8,432.0 million, up 16.4%, accounting for 51.5%.

With many positive signals, the budget revenue of Ho Chi Minh City in the first four months of 2021 reached about VND140,293 billion, reaching 39.4% of the estimate and increasing by 15.8% over the same period in 2020.

Notably, both domestic revenue and revenue from import-export activities increased. Specifically, domestic revenue reached VND101,493 billion, reaching 40.9% of the estimate, accounting for 72.3% of total budget revenue and increasing 14.5% over the same period.

Of which, the revenues increased, such as: The revenue from state-owned enterprises was estimated at VND8,402 billion, up 6.1% over the same period; revenue from the non-state sector was estimated at VND31,155 billion, up 41.8% over the same period; revenue from the foreign-invested sector was estimated at VND24,505 billion, reaching 46% of the estimate, accounting for 17.5% of total revenue and increasing by 6.9% over the same period.

Revenue from import-export activities was estimated at VND38,800 billion, reaching 35.9% of the estimate, accounting for 27.7% of the total budget revenue and increasing by 19.4% over the same period.

From the beginning of 2021 until now, Ho Chi Minh City Customs Department has focused on implementing customs regulations, processes and procedures, organizing the development of plans and schemes and applying information technology in the management and supervision of customs for import and export goods, in order to maximize the facilitation of trade flows and supply chains taking place in the area under management; strictly manage the professional stages before and after customs clearance.

According to the Ho Chi Minh City Customs Department, the pandemic is well controlled, the import-export activities of the business community have gotten used to the new normal, and the import-export turnover will continue to grow well.

By reforming customs procedures, creating the most favorable conditions for the business community to clear goods and pay taxes in a timely manner, Ho Chi Minh City Customs Department strives to exceed the assigned target of VND108,000 billion.