CUSTOMS BUDGET REVENUE EXPERIENCES 3% DECLINE IN Q1

Vietnam’s import and export value reached a total of US$145.59 billion in the first quarter (Q1) of 2024, marking a year-on-year growth of 18.2%. However, the customs budget revenue saw a 3% year-on-year decline, amounting to VND71,520 billion in the quarter, thereby achieving 19.1% of the full-year target. Recognizing budget revenue as an important task, the customs sector has, since the beginning of the year, implemented five general tasks along with specific solutions for each field that need to be executed rigorously.

The General Department of Vietnam Customs attributes this decline to a significant drop in the taxable import value of some key products compared to the same period in 2023. Specifically, due to preferential tax rates of 5% on gasoline and 0% on DO and FO oil imported from the ASEAN market, businesses have primarily imported these products from ASEAN rather than South Korea, where the duty is 8%. Consequently, this redirection of imported petroleum products has resulted in a 23% decrease in volume and a 30% reduction in value. The budget revenue collected from imported petroleum products has thus fallen by approximately VND2 trillion.

The import of Completely Built-Up (CBU) automobiles experienced a slump of 38% in volume and 39% in value, leading to a decline of VND4 trillion compared to the same period in 2023.

It’s noteworthy that the week-long Lunar New Year holiday, which fell in the first quarter, also contributed to a weakening of import and export activities. Additionally, the estimated revenue of the 10 key customs departments was VND62,502 billion, equivalent to 18.88% of the estimate and a decrease of 6.94% year on year.

Source: VCCI