INMEX Vietnam is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726

Concerned about skyrocketing costs when Ho Chi Minh City prepares to collect harbour infrastructure fees, 7 associations of Import-Export Jointly send petitions

22/03/2022

It is estimated that with a fishery enterprise in Khanh Hoa with 3,000 containers. XK/year had to pay 7.5 billion VND/year for the station fee. If this new fee is incurred, a medium-sized fishery enterprise outside Ho Chi Minh City will have to pay about 5.5 billion VND/year. Thus, these new fees increase costs for enterprises, reducing competitiveness when the economic context is still difficult

On March 1, 2022, 07 Business Associations including Vietnam Fishery Processing and Export Association (VASEP), Minh Bach Food Association (Aft), Vietnam Textile and Clothing Association (VITAS), Vietnam Footwear and Bag Association (LEFASO), Vietnam Dairy Association (VDA), Ho Chi Minh City Wood Arts and Processing Association (HAWA) and Vietnam Plastics Association (VPA) sent a letter of recommendation to the Government Office, the Advisory Council on Administrative Procedure Reform and the People’s Council and People’s Committee of Ho Chi Minh City on the lack of implementation of charging for the use of infrastructure works, public utility works in the border gate area, seaports in Ho Chi Minh City. Ho Chi Minh City under Resolution No. 10/2020/NQ-HĐND.

Accordingly, the enterprises think that the service fee level according to the above resolution is quite high, the collection time applied from April 1, 2022, is not reasonable when the enterprises have just started to restore production.

Explaining this problem, enterprises pointed out that in Q3/2021, enterprises had to stop operating due to the epidemic, in Q4/2021, enterprises only operated 30%-70% of capacity. In 2022, when the economy recovers, enterprises still suffer many escalating costs such as sea freight increases, gasoline prices increase due to supply constraints and the impact of the Russian-Ukrainian war…

Applying such a high fee at present is not appropriate, enterprises have to bear more costs, making economic recovery even more difficult. Therefore, the enterprises request the Government, the Consultative Council of CCTTC to consult with the People’s Council and the People’s Committee of Ho Chi Minh City. Ho Chi Minh City considers that the above fees will not be collected until December 31, 2022, to facilitate the production and business enterprises to overcome the economic consequences of the epidemic in 2021.

The petition further affirmed: “The applicable fee is not fair, inappropriate, creating more burdens on administrative procedures and increasing the time to carry out administrative procedures and congestion in implementation.”

For export goods, goods declared in provinces outside Ho Chi Minh City are twice as high as goods declared in Ho Chi Minh City. Therefore, enterprises will focus on opening declarations in Ho Chi Minh City. Ho Chi Minh caused the stalemate.

Goods deposited at bonded warehouses, temporary imports, transit goods, and imports also have charges many times higher than those of export goods. The fee applied to containers is 8.8 times higher, the fee for loose and bulk goods is 3.3 times higher than the fee of the corresponding export shipment opening declaration in Ho Chi Minh City. Ho Chi Minh City

Therefore, enterprises propose to adjust the rates in the direction of fairness, synchronizing a revenue level for all export export export export, outbound goods, transit goods, import goods as well as the location where the declaration was opened for the goods.

Finally, the enterprises suggested that Ho Chi Minh City make public and transparent the revenues, expenditures, announced the time and plans to use the revenues from the above fees to avoid the situation that the enterprises are subject to “tolls.”

According to section 4, Article 1 of Resolution No.10/2020/NQ-HDND dated December 9, 2020 of the City Council. Ho Chi Minh City “The whole toll fee for using the building structure Building of Ho Chi Minh City seaport area after deducting the cost of serving the full toll operation at the entrance to the City budget for management and layout of a purposeful use for the top of the road, as well as upgrading the traffic layer connecting the local seaport the City Table”.

But to the present, Ho Chi Minh City has not made public the use of the above revenue sources, while in fact, enterprises have been subject to many types of fees for infrastructure construction such as tolls, road use fees, bot fees… Seaports also collect many types of fees related to wharf infrastructure such as wharf fees, container storage fees, warehousing fees, container lifting fees.

It is estimated that for an aquaculture enterprise in Khanh Hoa with 3,000 containers. XK/this must have paid VND 7.5 billion/month for both station fees. If This new fee is assigned, the average aquaculture enterprise outside of Ho Chi Minh City. Ho Chi Minh will have to pay about 5.5 billion VND/m. Thus, these new fees increase costs for enterprises, reducing competitiveness when the economic context is still difficult.

Source: Doanh nghiệp và Tiếp thị

Share this post

You may be interested in

29/03/2022
Can Gio Transit Terminal – Benefits for Country, Locality and Business
(Chinhphu.vn) – The development of international transhipment port in Can Gio area is an...
22/03/2022
Development of seaports and logistics in the Mekong Delta: Visionary development mechanisms and policies are needed
With the existing bottlenecks, experts participating in the seminar “Development of seaports...

Subscribe to Our eNewsletters

    captcha
    BOOK A STAND
    ONLINE REGISTRATION