Make great efforts to collect import and export taxes under impact of FTA

VCN - In the context of implementing new-generation FTAs, the state revenue from import and export activities is greatly affected. Customs Magazine had an interview with Mr. Nguyen Quoc Huy, Deputy Director of the Customs Research Institute, General Department of Vietnam Customs on this issue.
Exporters urged to have strategies to take advantage of UKVFTA for expansion Exporters urged to have strategies to take advantage of UKVFTA for expansion
Perfecting the law on import and export tax towards exemption and reduction for the right subjects Perfecting the law on import and export tax towards exemption and reduction for the right subjects
Make great efforts to collect import and export taxes under impact of FTA
Mr. Nguyen Quoc Huy

How do you evaluate the positive aspects of implementing new-generation FTAs for the Vietnamese economy?

In recent years, promoting integration into the world economy and participating in FTAs have brought many important achievements in Vietnam’s economic development.

In the period of 2012-2023, Vietnam's import and export have achieved strong growth, contributing to improving its position in the international market.

According to the General Statistics Office, Vietnam's total export turnover in the past 10 years reached over US$2,000 billion with major export items such as: textiles, electronics, footwear, agricultural products, seafood, oil and gas and supporting industrial products...

In this period, Vietnam's imports also increased sharply, mainly raw materials, supplies, equipment and machinery for production and investment with a total import turnover of about US$1,900 billion.

Notably, in 2024, although import and export activities took place in a context of unpredictable economic and political fluctuations, the results in the past 10 months showed the positive growth of the economy.

According to statistics from the General Department of Vietnam Customs, as of October 31, the total import-export turnover of goods increased by 15.8% to US$ 647.87 billion year-on-year. Of which, the export turnover reached US$335.59 billion, up 14.9% and the import turnover earn US$ 312.28 billion, up 16.8% year-on-year.

As of October 31, the revenue from imports and exports saw a year-on-year increase of 14.5% to VND346,283 billion, meeting 92.3% of the estimate.

The results show that through active participation in new-generation FTAs, Vietnam has affirmed its strong determination to improve its position and deeply integrate with economies around the world, especially increase trade value thanks to incentives offered by signed FTAs.

Over the past time, the import and export tax collection has gained many remarkable achievements, ensuring correct and sufficient collection, contributing to the state revenue.

Revenue from imports accounts for a relatively high proportion in the revenue structure for the state budget, the proportion of revenue from import and export tax on total state revenue ranges between 13-14%.

Besides advantages, in your opinion, what are the challenges for the Customs?

In the context of international integration and market economy development, in addition to the basic advantages, I think that the reduction or abolishment of tariffs by FTA partners will reduce a part of the revenue from import and export, which is an important source of the state revenue.

Although tax reduction benefits domestic enterprises and consumers, in the short term it causes difficulties for the State budget, especially when alternative revenue sources have not been fully developed.

Additionally, the effectiveness of exploiting incentives from FTAs has not been as expected. The import and export activities in our country still depends heavily on a number of large markets, and the export turnover of domestic enterprises is still lower than those foreign enterprises.

In addition, the development of e-commerce and tax reduction under the committed roadmap of FTAs has led to domestic goods facing and strong competition from imported goods. At the same time, domestic production industries are suffered from fluctuations in the world market... affecting the State revenue from import and export taxes.

The FTAs signed by Vietnam enter into a period of deep tariff reductions, so that the revenues of some major industries will decrease sharply. This poses challenges in the revenue collection from imports and export activities by the Customs.

Notably, with the development of e-commerce, Vietnam is facing a situation of smuggling, trade fraud and counterfeit goods that take place extremely complicated in both scale and nature, significantly affecting domestic production, causing revenue losses and damage to legitimate businesses and consumers.

Facing the impacts, what solutions has the Customs implemented to avoid risks, improve management efficiency and prevent revenue losses in the Customs sector?

In order to overcome practical limitations, the Customs has continuously reformed and simplified administrative procedures towards modernity, openness, transparency, promptly resolved arising problems under its authority related to customs procedures, tax policies, tax management, accounting regime, tax refunds, tax exemptions, and removed difficulties to create favorable conditions for enterprises to participate in import-export activities.

The unified and drastic implementation of solutions to facilitate trade, improve the effectiveness of state management, and prevent revenue loss in the State revenue collection has brought about many results.

The Customs has promoted the modernization of e- tax collection and customs clearance 24/7 by actively promoting cooperation with banks to implement 24/7 e-tax payment, piloting tax payment through intermediary payment service providers, ensuring that taxpayers can pay taxes anytime, anywhere, and by any devices.

The Customs has advised the Ministry of Finance to issue the List of import and export goods with risks in value and the List of import and export goods with risks in classification and application of tax rates.

The development, amendment and supplementation of the Risk Management List ensures that the number of product lines, prices and codes are increasingly consistent with the reality, creating a reliable source of information for localities to note suspicions and fight against enterprises that implement under-value declaration and falsely declare codes, contributing to strengthening effective price code management, timely and correct collection for the State budget.

At the same time, continuously apply international standards and modern customs management processes to create maximum convenience for the business community while still ensuring strict supervision and management in accordance with legal regulations; research, propose and implement solutions to increase revenue and prevent revenue loss; proactively assess the impact of international integration commitments on State revenue collection.

The Customs Department regularly disseminates legal policies and encourages enterprises to voluntarily comply with customs laws during customs procedures, ensuring a transparent, fair and effective business environment.

Thank you Sir!

By Nu Bui/Ngoc Loan

Related News

Total import-export turnover reaches US$715.55 billion in 11 months

Total import-export turnover reaches US$715.55 billion in 11 months

VCN - In November, total import-export turnover amounted to US$66.4 billion, down 4.1% compared to the previous month but up 9.0% compared to the same period last year.
Customs sector collects over VND384 trillion in revenue

Customs sector collects over VND384 trillion in revenue

VCN - By the end of November, the Customs revenue exceeded the estimate by 2.6% and increased by 14.8% compared to the same period in 2023, the General Department of Vietnam Customs released on December 11.
Preliminary assessment of Vietnam international merchandise trade performance in the first half of November, 2024

Preliminary assessment of Vietnam international merchandise trade performance in the first half of November, 2024

The Vietnam Customs Statistics announced that in the first half (01-15/11/2024) of November-2024, Vietnam’s total exports of US dollars 16.73 billion and imports of US dollars 16.7 billion resulted in a trade surplus of nearly US dollars 31 million. Accordingly, the total value of export and import turnover of Vietnam in the first half of November was US dollars 33.44 billion, down by 9.7% as compared to the second half of October-2024.

Latest News

Japanese businesses express satisfaction with HCMC Customs’ Support

Japanese businesses express satisfaction with HCMC Customs’ Support

On December 9, 2024, during the roundtable meeting between the Ho Chi Minh City Government and the Japanese Business Association of Ho Chi Minh City (JCCH), representatives from Japanese businesses expressed great satisfaction with the guidance and responses provided by the Ho Chi Minh City Customs Department.
Actively listening to the voice of the business community

Actively listening to the voice of the business community

VCN - Recognizing the Customs-business relationship as a long-term partnership, the Customs authority has organized hundreds of dialogues with businesses since the beginning of the year. These efforts aim to promptly address challenges, resolve obstacles, and facilitate import-export activities. Such meetings offer an opportunity for the Customs authority and the business community to exchange, share insights, and find solutions to enhance operational quality and efficiency.
Vietnam-Cambodia: Looking back on journey of cooperation

Vietnam-Cambodia: Looking back on journey of cooperation

VCN – The bilateral meeting between the General Department of Vietnam Customs (GDVC) and the General Department of Customs and Excise of Cambodia (GDCEC) was held by the GDVC on December 9.
Cao Bang Customs achieves key tasks soon

Cao Bang Customs achieves key tasks soon

VCN – Cao Bang Customs Department has achieved many key tasks, especially the revenue collection target.

More News

National Assembly’s Law Committee works with Ho Chi Minh City Customs Department

National Assembly’s Law Committee works with Ho Chi Minh City Customs Department

VCN - On December 5, 2024, a survey delegation from the Steering Commitee on Law of National Assembly, led by Ms. Tran Hong Nguyen, Vice Chairwoman of the Committee, held a working session with the Ho Chi Minh City Customs Department.
Enhancing cooperation effectiveness in combating smuggling, counterfeiting, and intellectual property violations

Enhancing cooperation effectiveness in combating smuggling, counterfeiting, and intellectual property violations

VCN - In the morning of December 6, 2024, in Ho Chi Minh City, Customs Magazine organized a seminar on "Improving the effectiveness of cooperation in combating smuggled goods, counterfeit goods, and goods violating intellectual property rights".
HCM City Customs Department supports and removes difficulties enterprises

HCM City Customs Department supports and removes difficulties enterprises

VCN – HCM City Customs Department has focused on implementing digitalization in management and support for customs brokers and promptly instructing procedures for enterprises to facilitate trade.
Prosperity at Chi Ma border gate

Prosperity at Chi Ma border gate

VCN - Talking about Chi Ma border gate (Loc Binh district, Lang Son province) may be unfamiliar to many people, but for us, it is full of sketched images with many colors of skin and flesh change. In this border land, our colleagues - Customs officers told us about the development process, the rise to affirm that it is a potential national border gate in the near future.
Ensuring requirements of state management of customs in Lao Cai

Ensuring requirements of state management of customs in Lao Cai

VCN - Customs Magazine has interviewed Deputy Head of Technical Division (Lao Cai Customs Department) Vu Van Tuan about the state management of customs for the system of warehouses, yards and places for gathering exports, imports for customs inspection and supervision in the area.
Ba Ria-Vung Tau Customs revenue surpasses target by over VND 1 Trillion

Ba Ria-Vung Tau Customs revenue surpasses target by over VND 1 Trillion

VCN - As of November 27, 2024, the total revenue collected by the Ba Ria-Vung Tau Customs Department reached VND 19.042 trillion, exceeding the assigned target by VND 1 trillion, or 6%.
Ho Chi Minh City Customs answered over 30 customs procedure questions for businesses

Ho Chi Minh City Customs answered over 30 customs procedure questions for businesses

VCN - On November 27, Ho Chi Minh City Customs Department coordinated with Ho Chi Minh City Investment and Trade Promotion Center (ITPC) to organize a dialogue conference with over 200 import-export enterprises (IPEs) that regularly carry out procedures through Ho Chi Minh City border gates.
Hai Phong Customs achieves revenue target soon

Hai Phong Customs achieves revenue target soon

VCN – As of Hai Phong Customs Department has gained the revenue target for the whole year of 2024.
Import and export turnover across Quang Tri Customs increases by 31.39%

Import and export turnover across Quang Tri Customs increases by 31.39%

VCN - As of November 15, the import-export turnover across border gates in the area saw a year-on-year increase of 31.39% to US$940.73 million, Quang Tri Customs Department said.
Read More

Your care

Latest Most read
Customs sector collects over VND384 trillion in revenue

Customs sector collects over VND384 trillion in revenue

VCN - However, the Customs revenue in the first 11 months still sees positive growth.
Japanese businesses express satisfaction with HCMC Customs’ Support

Japanese businesses express satisfaction with HCMC Customs’ Support

Representatives from Japanese businesses expressed great satisfaction with the guidance and responses provided by the Ho Chi Minh City Customs Department.
Actively listening to the voice of the business community

Actively listening to the voice of the business community

Recognizing the Customs-business relationship as a long-term partnership, the Customs authority has organized hundreds of dialogues with businesses since the beginning of the year
Vietnam-Cambodia: Looking back on journey of cooperation

Vietnam-Cambodia: Looking back on journey of cooperation

VCN - Speaking at the opening of the meeting, on behalf of Vietnam Customs, Director General Nguyen Van Tho warmly welcomed Mr. Kun Nhem, Minister Attached to the Prime Minister, Director General of the GDCEC and the high-ranking delegation to visit and w
Cao Bang Customs achieves key tasks soon

Cao Bang Customs achieves key tasks soon

VCN - Following the plan and orientation of the Customs sector and Cao Bang province, Cao Bang Customs department issued Program No. 150/CTr-HQCB dated January 17, 2024 on implementing key tasks in 2024.
Mobile Version