Raising port service charge is inevitable

	Da Nang Customs boost the collection of customs fees and charges by electronic method
	Correct the collection of carriage charge in the customs valuation
	Minimize the collection of customs fees and charges in cash

Mr. Trinh The Cuong, Director of Shipping and Maritime Services

What do you think about the Vietnam's seaport system?

According to the Vietnam Maritime Bureau, Vietnam's seaport system now has 45 seaports (263 wharves, 18 anchorages, transshipment ports) with nearly 89 km of wharves, total designed capacity of 543,7 million tons per year. There are more than 216 State-owned and privately owned enterprises exploiting.

The port system in Vietnam has been synchronously invested in infrastructure such as berths, mooring buoys, equipment for loading and unloading, with full development and completed functions on a large scale and distributed throughout the region, taking full advantage of natural conditions for meeting the requirements of transporting goods by sea, actively serving the process of socio-economic development in the coastal area, and also creating a motive force to promote the development of various economic and industrial sectors.

Of these, only a few are built with high investment, modern facilities (Cai Mep - Thi Vai port, Lach Huyen port, Hai Phong port, Cat Lai port). Most of the ports of private enterprises have small scale, low investment capital, the quality of service is not high. Therefore, the service cost at each seaport is not similar, the price level of some services built from 2013-2014 is no longer appropriate. In particular, the prices for container loading and unloading and the passenger service charge for passenger ships at Vietnamese seaports is very low compared to the region.

Specifically, the price of container loading and unloading services in Hai Phong port area is only about $US 30 per container of 20 tons, while in Da Nang is $US 45, Ho Chi Minh city is about $US 41, Malaysia is $US 52, Hong Kong (China) is up to $US130. Similarly, each passenger arriving at the port will pay $US 0.9 to $US 1.1 per trip, while the price at Singapore and Japan seaports is $US 8, Hong Kong is $US 14, higher than dozens of times.

What is the reasons causing the differences in the prices of Vietnam’s seaport services?

The port service charge for container loading/unloading is collected from the shipping company, then the shipping company collects terminal handling charge (THC) from the goods owner (sender or consignee). However, this charge was directly raised by the ship owner ($US 90-110/ container of 20 tons and $US 120-145/ container of 40 tons) and paid to the port from $US 30-46/ container of 20 tons, and $US 45-68/ container of 40 tons. This makes many businesses not having enough resources to reinvest in their infrastructure, upgrade their equipment, and improve service quality as well as expand infrastructure.

At present, the Ministry of Transport is drafting a Circular of fees for using pilotage service, services for using wharves, anchor buoys, container loading/unloading services and seaport towing services in Vietnam, which is replacing the Decision No. 3863/QD-BGTVT. However, many businesses worry that, the adjustment of the price for container loading/unloading will directly affect the importers and exporters of Vietnam? What is your opinion on this issue?

In my opinion, the unreasonable service price not only does not help reduce logistics costs, but also makes it difficult for seaport companies to invest in upgrading loading and unloading technology, prolonging the time of loading at the port, which is expensive for transport enterprises.

In addition, the adjustment of the price for import and export container loading/unloading will not affect the consumer price index (CPI), contributing to increase investment opportunities, promoting infrastructure development and strengthening the association, reducing logistics costs.

The CPI is only affected if the foreign carrier increases the price of THC for Vietnamese goods owners due to the impact of the increase in the price of loading and unloading. At the same time, if the rates of container loading and unloading services for import and export goods increase by 10% on the Vietnamese market, importers and exporters will not be affected thanks to paying to foreign shipping lines through THC.

Meanwhile, the increase of 10% of price for loading and unloading only accounts for 3% of revenue from THC ($US 3/100/ container of 20 tons, $US 5/150/ container of 40 tons), this is a small increase compared to the value of THC that the foreign shipping companies collect from Vietnamese goods owners, so it is unlikely that foreign shipping companies increase their THC prices for Vietnamese exporters.

For seaports in Hai Phong with an expected production of 4.2 million Teus in 2019, these seaports will earn at least VND 280 billion, contributing more than VND 60 billion of corporate income tax to the State.

Late payment shall not be charged for the period pending the analysis results VCN - Where goods are subject to analysis to determine the exact amount of tax payable, taxpayers ...

Now, the transportation service infrastructure system is lacking, fragmented and lacking connectivity, especially the lack of dry bulk ports, large logistic centers and convenient location in each key business area to play as a cargo distribution terminal, which has affected the optimization of transport operations, especially multimodal transport. Meanwhile, the resources for investment are still very limited, many seaport enterprises do not have sufficient funds to reinvest, modernize technology and upgrade the management system.

In order to remove barriers to this transportation activity, reducing transportation costs, increasing product price competition, on the basis of real costs of enterprises, evaluating the impact on the adjustment of each type of service and ensuring the interests of the state and enterprises, gradually approaching the common price level in the region and the world, the increase of seaport service prices is inevitable.

Thank you Sir!