Import and export increase - budget revenue increases but difficulties await

VCN - In the first eight months of the year, the total state budget revenue of the Customs sector reached VND250,871 billion, up 30.07% over the same period last year. However, in order to complete the task of collecting state budget in the context of complicated pandemic developments and many preferential tax lines during the integration process, it poses great challenges for the Customs sector.
The Covid-19 pandemic has developed seriously, greatly affecting import-export activities.
The Covid-19 pandemic has developed seriously, greatly affecting import-export activities.

Great influence from the Covid-19 pandemic

In the context of the serious development of the Covid-19 pandemic, greatly affecting import-export activities, disrupting the supply chain of goods and raw materials for export production of enterprises, the state budget collection of the maritime industry is becoming more and more difficult.

In 2021, only eight months have passed, but there are seven months that the whole country has to fight against the pandemic, import and export activities from border gates and seaports to production and business activities of domestic enterprises continuously interrupted in many parts of the country. 2021 is a particularly difficult year for the economy and business operations.

The pandemic has seriously affected all fields, significantly impacted the supply chains and trade circulation, and stalled production, business and service activities in many provinces as well as cities throughout the country.

However, thanks to the active and effective implementation of measures to both combat the Covid-19 pandemic and facilitate import-export activities and remove difficulties for businesses, the country's total import-export turnover in the first eight months of the year is projected to reach US$428.82 billion, up 27.2% over the same period last year.

In which, export turnover is estimated at US$212.55 billion, up 21.2% and import turnover is estimated at US$216.27 billion, up 33.8% over the same period last year. Budget revenue is estimated at VND250,871 billion, reaching 79.6% of the estimate, 75.58% of the striving target, up 30.07% over the same period in 2020.

Officials of Dinh Vu port border gate Customs Sub-Department, Hai Phong Customs Department inspect imported goods. Photo: T.BINH
Officials of Dinh Vu port border gate Customs Sub-Department, Hai Phong Customs Department inspect imported goods. Photo: T.BINH

Although Covid-19 continues to have complicated developments, spreading to many provinces and cities across the country; especially in Ho Chi Minh City - the economic locomotive of the country and many different provinces in the southern region - with the slow signals of import and export activities in July, the import-export situation is still increasing because many enterprises have signed import contracts before the pandemic broke out, goods are still carrying out procedures to help the State budget collection of the Customs sector.

Accordingly, in the general calculation of seven months, import and export activities still maintained a high growth rate compared to the same period last year.

In August, this growth momentum is slowing down, many previous orders of enterprises have ended, leading to a serious decrease in the growth rate of goods, down to 5.8% compared to July. The whole industry only reached VND19,311 billion.

On the other hand, the implementation of international integration commitments on tariffs under the commitments of the Free Trade Agreements (FTA) also led to a decrease in the state budget revenue from import taxes, affecting the state budget revenue in general. FTAs have the effect of reducing direct revenue from the volume and value of goods imported from the signed countries.

In addition, FTAs also causes indirect revenue reduction from "trade diversion", it means that importers switch to import from countries with FTA commitments to enjoy special preferential tax rates instead of importing from other countries outside the FTA as before.

Therefore, it cannot be denied that the implementation of tariff commitments according to the roadmap in FTAs and the pandemic had a strong impact on the state budget revenue from import and export activities of the Customs sector, especially in 2021.

Overcome difficulties together with businesses

In the remaining months of 2021, the Customs sector determined that the implementation of the budget collection task will be difficult when the situation of the Covid-19 pandemic is still complicated, adversely affecting import-export activities of enterprises.

Therefore, in order to facilitate enterprises to carry out procedures in the context that many provinces and cities maintain the implementation of Directive 16, the General Department of Customs also strongly deploys the application of information technology, methods of electronic transactions to support enterprises to complete customs procedures, comprehensive application in all professional fields of customs authorities, contributing to simplifying customs procedures and reducing customs clearance time for enterprises.

Ensuring 100% of Customs Departments and Customs Sub-departments carry out electronic customs procedures, budget collection and payment can be done anytime, anywhere, by any means.

The General Department of Customs also requested the customs units of provinces and cities to synchronously implement many solutions to accompany enterprises to remove difficulties, ensure the source of raw materials for production and business, as well as not causing disruptions of goods supply chains.

In particular, the General Department of Customs requires its subordinate units to implement solutions to support and create convenience for individuals and businesses, ensuring customs management, focusing on administrative procedure reform.

At the same time, it is necessary to implement solutions to support and create convenience for individuals and businesses in carrying out customs procedures, applying modern customs management methods to ensure supervision and inspection of import and export goods quickly, contributing to repelling and minimizing the possibility of disease spreading; increase online meetings, work remotely to ensure that the unit's activities are not interrupted by the pandemic.

In particular, in order to strive for budget revenue to meet and exceed assigned estimate targets, in the last months of 2021, the General Department of Customs directs the whole industry to closely follow and strictly implement Directive 215/CT-TCHQ to facilitate trade, improve the effectiveness of state management, drastically implement collection tasks and prevent loss of revenue, according to official letter No. 119/TCHQ-GSQL on strengthening inspection of activities import and export goods.

In particular, the Customs sector will continue to urge provincial and municipal customs departments to implement urgent measures to realize the "dual goal" of both preventing the Covid-19 pandemic and facilitating import-export activities.

Along with the efforts to clear goods, the Customs authority also proposed to the specialized management ministries to remove difficulties for enterprises in the import-export process in order not to disrupt the supply chain during the time of implementing social distancing according to Directive 16.

By Nụ Bùi/Bui Diep

Related News

VND 479 Billion contributed to state budget from violations handling

VND 479 Billion contributed to state budget from violations handling

VCN - From December 15, 2023, to October 14, 2024, market surveillance forces nationwide conducted inspections of 61,079 cases, uncovering and handling 41,725 violations.
Mong Cai Customs sets new record in revenue collection

Mong Cai Customs sets new record in revenue collection

VCN - The Mong Cai Border Gate Customs Branch, under the Quang Ninh Customs Department, has set a new record for the highest state revenue collected to date.
State revenue collection poised to surpass annual target

State revenue collection poised to surpass annual target

VCN - With ten months of 2024 behind us, Vietnam’s state budget revenue is on track to exceed the year’s target. The Ministry of Finance is pushing hard to achieve results that go beyond initial projections as the year draws to a close.
Nghe An Customs surpasses challenges, achieves revenue target ahead of schedule

Nghe An Customs surpasses challenges, achieves revenue target ahead of schedule

VCN - In 2024, the Nghe An Customs Department tackled state revenue collection amid significant socio-economic challenges. Despite these hurdles, the department reached 111.07% of its assigned revenue target within the first 10 months, achieving its annual goal well ahead of time.

Latest News

Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN – In order to achieve goal of strictly managing public debt and maintaining security and safety of the national financial system in 2025, it is necessary to ensure the borrowings and repayments of public debts is within the approved estimate; closely monitor public debt indicators to ensure that they are within the ceiling and warning thresholds approved by the National Assembly.
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

VCN - On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws. Concluding the session, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized the need for the Government to direct the drafting body and relevant agencies to collaborate closely to finalize a persuasive and widely supported report, ensuring the quality of the draft law for the National Assembly's consideration and decision.

More News

Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

VCN - According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
State-owned securities company trails competitors

State-owned securities company trails competitors

Contrary to the outstanding performances in the banking sector, the securities subsidiaries of major banks have yet to fully leverage their potential, despite numerous inherent advantages.
Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - The state economy plays a key role in the socio-economic development process, but it is necessary to strengthen the financial health and competitiveness of state-owned enterprises (SOEs).
U.S. Treasury continues to affirm Vietnam does not manipulate currency

U.S. Treasury continues to affirm Vietnam does not manipulate currency

VCN - In its latest report, the U.S. Department of the Treasury has positively assessed Vietnam's monetary policy, reaffirming that Vietnam does not engage in currency manipulation.
Exchange rate fluctuations bring huge profits to many banks

Exchange rate fluctuations bring huge profits to many banks

Net profits from the foreign exchange trading segment of many banks have gained positive results thanks to a strong USD/VNĐ exchange rate fluctuations this year.
A “picture” of bank profits in the first nine months of 2024

A “picture” of bank profits in the first nine months of 2024

VCN - Pre-tax profits for banks during the first nine months of 2024 remained positive, exceeding 200 trillion VND, solidifying the sector's position as a market leader.
Many challenges in restructuring public finance

Many challenges in restructuring public finance

VCN - Restructuring public finance is an important step to improve state financial management, ensure resources are allocated reasonably and effectively, contributing to the country's sustainable development. In addition to the achieved results, the process of accelerating public finance restructuring also faces many pressures.
Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

VCN - E-commerce platforms that declare and pay taxes on behalf of traders not only help to reduce the number of tax declaration points but also reduce the cost of compliance with administrative procedures for the whole society because only one point as the e-commerce trading platform implements tax deduction, payment and declaration on behalf of tens, hundreds of thousands of individuals and business households on the platform.
Disbursement of public investment must be accelerated: Deputy PM

Disbursement of public investment must be accelerated: Deputy PM

Deputy Prime Minister Ho Duc Phoc has called on ministries, agencies, and localities to accelerate the disbursement of public investment from now until the year-end and further tighten investment management.
Read More

Your care

Latest Most read
Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN - According to the plan for borrowing and repaying public debt and foreign debt of the country in 2025, the total borrowing demand of the Government in the year is expected to be at VND 815,238 billion, an increase of 20.6% compared to the Government'
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
Mobile Version