Want to be in the loop?
subscribe to
our notification
Business News
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
Related News
![Card image cap](/uploads/news/Security.jpg)
2025 PIVOTAL FOR STOCK MARKET UPGRADE EFFORT
The Ministry of Finance (MoF) is expected to soon publish the entire content of the draft circular amending and supplementing four circulars on transactions, registration, depository, and clearing, as well as operations of securities companies and information disclosure. This move, along with feedback and explanations, aims to meet the criteria for upgrading Vietnam’s stock market.
![Card image cap](/uploads/news/bn-01.jpg)
VIETNAM INTENSIFIES E-COMMERCE TAX SCRUTINY
The department plans to offer guidance for and hold direct dialogues with e-commerce taxpayers to ensure compliance. Efforts will also include updating the e-commerce database, conducting risk analysis, and leveraging artificial intelligence (AI) to manage data and issue alerts.
![Card image cap](/uploads/news/eco2.jpg)
FOOTWEAR EXPORTS SEEN REACHING US$27 BILLION THIS YEAR
This optimistic forecast reflects the industry’s efforts to expand and diversify its markets. Lefaso indicated that Vietnam’s footwear sector will concentrate on traditional markets like the U.S. and the European Union, alongside markets with free trade agreements to maximize opportunities.
![Card image cap](/uploads/news/FDI.jpg)
FDI INFLOW INTO VIETNAM REACHES NEARLY 15.2 BILLION USD
Vietnam attracted nearly 15.2 billion USD in foreign direct investment (FDI) in the first six months of this year, a year-on-year increase of 13.1 per cent, according to the General Statistics Office.
![Card image cap](/uploads/news/Eco4.jpg)
GDP GROWTH REACHES 6.42 PC IN FIRST HALF
Vietnam's economy grew by 6.42 pc in the first six months of 2024, slightly lower than the figure of 6.58 pc in the same time of 2022 within the 2020-2024 period.
![Card image cap](/uploads/news/Eco3%20%281%29.jpg)
CAPITAL FLOWS STRONGLY INTO INDUSTRIAL REAL ESTATE
Industrial real estate has had easier access to bank credit since July, when the State Bank of Vietnam (SBV) reduced the credit risk coefficient for industrial real estate from 200 per cent to 160 per cent, encouraging commercial banks to lend to more projects in the segment.