The road to Cat Lai port in Ho Chi Minh City. Photo: T.H

Reducing the burden on businesses

At the recent briefing of the Private Economic Development Research Board (Board IV), Mr. Nguyen Duy Minh, General Secretary of the Vietnam Logistics Business Association (VLA) proposed information to Board IV to the Government on directing the exemption and reduction of seaport infrastructure fees for import-export businesses to partly reduce the burden on businesses during the current import and export situation.

As of December 31, 2022, Ho Chi Minh City has collected over VND 1,900 billion from port infrastructure fees. It is expected that in 2023, the revenue will reach about VND 3,000 billion.

Ho Chi Minh City started to collect seaport infrastructure fees from 00:00 on April 1 with the lowest level of 15,000 VND per ton, the highest 4.4 million VND for a 40-foot container.

The fee collection process is implemented electronically, not using cash. However, after the implementation period, many businesses and associations reacted because they thought there was discrimination, this fee added a burden to businesses, especially after the pandemic.

At the 6th meeting of the People's Council of Ho Chi Minh City, term X on June 25, 2021, the Resolution on amending and supplementing Resolution No. 10 of the City Council on collecting seaport infrastructure fees from August 1, 2022.

Accordingly, Ho Chi Minh City exempts fees for all types of goods, including imported goods directly serving security and defense; ensuring security and overcome consequences of natural disasters and epidemics; sending to the bonded warehouse; transit; in and out of the port by waterways according to the Agreement between the Governments of Vietnam and Cambodia on water transport. Import and export goods transported by water will be reduced by 50% of the fee. In addition, the fee for import and export goods declared in Ho Chi Minh City or another locality is also adjusted to the same rate.

The purpose of amending the resolution is to support the transportation of goods by inland waterway for subjects covered by the Agreement between Vietnam and Cambodia on water transport. At the same time, encourage inland waterway transport to develop and accompany the Government to support enterprises to restore production and business.

Large inventory, import and exportare still difficult

Presenting the macroeconomic situation, businesses and policies to support businesses, Dr. Can Van Luc, member of the National Monetary and Financial Policy Advisory Council, Chief Economist of BIDV, pointed out the current inadequacies and notable points of the economy.

According to forecasts, the economic situation this year will be less positive than in previous years, which is understandable because the economy is recovering from the Covid-19 pandemicalong with the war between Russia and Ukraine negatively impactingthe global supply chain. A rather bleak picture of the Vietnamese economy with bad debts at banks increasing and according to statistics in the last five years, the period (2019-2023), the industry - construction sector decreased for the first time.

However, besides the negative forecasts, the economy still has some bright spots, typically the inflation rate has decreased from 7.6% (in 2022) to 5.2% (in 2023) and is expected to fall to 3.2% in 2024, and positive domestic consumption growth and the government's promise of unprecedented public investment this year.

Regarding the import and export situation in the future, Dr. Can Van Luc said that the reduction in both quantity and price has led to a decrease in export turnover. In which, the wood industry is being affected the most, down 28.7%.

In the main import-export markets of Vietnam, there is Korea, which has experienced a serious decrease in turnover compared to the same period last year when it decreased from -7.1% to -26.8%. Moreover, next year (2024) is also the year of global minimum tax, so it is predicted that the situation of attracting foreign investment capital will not be positive in the near future.

Ms. Pham Thi Ngoc Thuy, Standing Deputy Director of Division IV Office, said that retail inventory in the US had reached USD 740 billion; this shows the need to import more goods from Vietnam. The US is falling because the inventory in their current retail system is at an alarming level.

A prediction for Vietnam is that if this number of inventories decreases, Vietnam will have the opportunity to increase exports to the US market, so the short-term solution for our country's manufacturers is to turn to develop the domestic consumer market in the current period of gloomy exports.