TRAFFIC CONGESTION CAUSES IMPORT-EXPORT TAX REVENUE TO DROP

The tax revenue from import-export activities of HCMC in the first half of the year dipped by 4.8% year-on-year to VND50.02 trillion (US$2.2 billion), which is partially attributed to the severe traffic congestion at seaports that causes cargo throughput to fall.

According to a report delivered at a conference today, July 3, on HCMC’s economic performance in the first six months of the year, the city obtained nearly VND183.5 trillion in tax revenue in the period, reaching 48.7% of the annual estimates and rising by 8% over the same period last year. Of this, revenues from domestic production and business activities as well as crude oil sales increased by 11.7% and 39%, respectively.

At the conference, Phan Thi Thang, director of the municipal Department of Finance, said in addition to a fall in import-export tax, revenues from land use fees had decreased by 13%.

Regarding the fall in HCMC’s trade revenue, Thang explained that the import tax on autos had been cut to zero from January 1,  while the import tax revenue from fuels has also gone down and may continue to plunge in the coming time as importers are likely to carry out customs clearance procedures for fuel imports at Van Phong Port in Khanh Hoa Province.

It is noteworthy that traffic congestion on roads leading to ports have hindered the transport and handling of cargo. Enterprises also tend to complete customs clearance procedures at the Cai Mep-Thi Vai port complex in Ba Ria-Vung Tau Province, thus paying taxes there and reducing the city’s revenue from import-export activities.

Therefore, it is necessary for the city government to find solutions to maintain the high growth of logistics services in HCMC.

The report also highlighted other problems of urban management. Floods and traffic congestion remain major concerns in the city despite major investments in many medium- and long-term antiflooding projects.

Su Ngoc Anh, director of the HCMC Department of Planning and Investment, reported that the city’s gross regional domestic product in the first half of the year reached some VND585.64 trillion, up by 7.86% over the same period last year. In addition, the proportion of high-quality and high-value-added services in the economic structure has grown, including trade; finance, banking and insurance; tourism; information and communications; transport and logistics; science and technology; real estate; education; and healthcare.

Meanwhile, the city continues to face obstacles, such as the slow development of some manufacturing industries, small investments in several sectors, floods, traffic congestion and violations of food safety regulations.

In the remaining months of the year, the city should promote investment, restructure State-owned enterprises, develop waterborne tourism, execute the smart city project, develop an innovative urban area to the east of the city, issue preferential policies to boost industrial development, prepare land for hi-tech projects, develop the hi-tech agricultural sector, enhance the monitoring of the environment and simplify administrative procedures for land use right certification.

Meanwhile, the HCMC government plans to invest more in manpower, offering training for some 7,200 entrepreneurs in the city.

The municipal Department of Planning and Investment is drafting a detailed action plan for the training program and will submit it to the HCMC Department of Finance. It will be the foundation for the city government to allocate capital and choose a suitable training service provider.

Source: The Saigon Times