Ho Chi Minh City charges for port facilities, Dong Nai and other provinces face difficulties.

​Goods are being transported at Dong Nai Port.

According to some businesses, with the strategy and fee system as the resolution, Ho Chi Minh City is likely to attract more import and export enterprises from other localities to open customs declarations in order to minimize fees. Some provinces, such as Dong Nai and Binh Duong, have a significant number of import-export companies.

Policy for Business Rewards.

Ho Chi Minh City's seaport system currently has over 40 ports. HCMC serves as an important gateway between the Southeast and the West for for enterprises trading in import and export goods. Ho Chi Minh City is also a focal point for transforming modes of transportation from sea transportation to rail, railway, inland waterway... with a yearly potential of transporting over 100 million tons of import and export products. As a result, the implementation of the port fee collection policy is noticed by many nearby enterprises and localities, including Dong Nai, where has thousands of import-export enterprises.

The fee for import and export products of enterprises opening declarations and did not open a declaration in Ho Chi Minh City city is among the contents of the resolution's payments, the substance of which is of concern to enterprises outside the city. The fee for for imports and exports products that opening declarations outside of Ho Chi Minh City would be 500,000 VND /cont for 20ft containers, 1 million VND /cont for 40ft containers, and 30,000 VND /ton for liquid and loose products not packed in containers. Meanwhile, if businesses dealing in import and export goods open customs declarations at Customs Ho Chi Minh City, they will receive a 50% discount on fees. Specifically, for import and export goods of enterprises opening declarations at Customs Ho Chi Minh City, the charge rate will be 250,000 VND /cont for 20ft containers; 500,000 VND/cont for 40ft containers; and 15,000 VND/ton for liquids.

Making it impossible for nearby localities

With this preferential policy, many companies opening customs declarations in Dong Nai with a large amount of import and export business products will have to consider the benefits. Meanwhile, companies have to pay taxes in the place where they open customs declarations. Therefore, if companies want to open customs declarations in Ho Chi Minh City, they will be able to pay taxes in the city. As a result, provinces with import-export businesses will face difficulties in collecting import and export taxes, impacting total budget revenues of localities such as Binh Duong, Dong Nai, and western provinces.

Mr. Dang Van Diem - Chairman of the Dong Nai Young Entrepreneurs Association, stated that with the above preferential policies of Ho Chi Minh City, it is possible that companies will choose to return to Ho Chi Minh City to open customs declarations because the gap is not insignificant. According to Mr. Diem, there are large import and export enterprises, particularly in the difficult context due to the effects of the Covid-19 outbreak, companies would have to consider to minimize costs. Of course, businesses will have the best option for them.

Mr. Nguyen Van Tinh, an import-export employee for a foreign company in Bien Hoa 2 Industrial Park, said that nowadays, most of a company's customs procedures are mostly performed by agents, so Customs clearance and opening customs declarations are handled by specialist service, making opening customs declarations in anywhere is a very easy matter. With the above preferential and inviting strategies, Ho Chi Minh City will entice companies to open customs declarations in order to take advantage of this limited preferential policy.

Recently, Dong Nai Customs has drawn thousands of import-export enterprises to open declarations in Dong Nai as a result of policies to reform customs procedures, establish a bond between customs and enterprises, and attract enterprises to open customs declarations in Dong Nai, rising revenue from import and export budget for localities.

Will Dong Nai be cornered by Ho Chi Minh City's latest port toll policy? Some companies said that in order to retain budget revenue, provincial leaders and the Dong Nai Customs Department must make recommendations and begin to change administrative processes in order to increase the quality of service and attract businesses back to themselves. Consideration of benefits in production is a valid concern for enterprises. However, Ho Chi Minh City's policies are likely to "drew" businesses to open declarations, increase budget revenues for Ho Chi Minh City, while several other localities will face difficulties as a result of lost businesses opening local declarations.

Phan Anh