21/03/2022
U&I Logistics – On March 1, 2022, 07 Business Associations including Vietnam Association of Seafood Exporters and Producers (VASEP), Association of Food Transparency (AFT), Vietnam Textile and Apparel Association (VITAS), Vietnam Leather, Footwear and Handbag Association (LEFASO), the Vietnam Dairy Association (VDA), Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) and the Vietnam Plastics Association (VPA) have submitted petitions to the Government Office, the Advisory Council for Administrative Procedure Reform and the People's Council and the People's Committee of Ho Chi Minh City on the fact that the collection of fees for using infrastructure and public services should not be launched at its ports according to Resolution No. 10/2020/NQ-HDND.
Seven business associations have submitted petitions on the fact that the collection of fees for using infrastructure and public services should not be launched at its ports.
Accordingly, the businesses believe that, from June 11, 2021 to the end of September 2021, most businesses have to stop operating because of the Covid-19 pandemic. Meanwhile, businesses still have to pay many expenses such as salary for accreditation, interest on bank loans, inventory costs, storage... due to not being able to export or sell goods. From October to December 2021, most businesses only operate in moderation at 30-70% of their capacity due to labour shortage, lack of resources, and supply chain breakage. By the beginning of 2022, when businesses began to recover, sea freight rates, gasoline costs and raw material prices increased.
In addition, businesses pointed out that in the third quarter of 2021, businesses had to stop operating due to the pandemic, in the fourth quarter of 2021, businesses could only operate at 30%-70% of their capacity. In 2022, when the economy recovers, businesses have to deal with escalating costs such as galloping sea freight rates, rising gasoline prices due to supply constraints and the impact of the Russia-Ukraine war...
For the above reasons, the collection of seaport infrastructure fees in Ho Chi Minh City at this time is not appropriate because it increases the burden on businesses, hamper their competitiveness and hinders the economic recovery in the current context of difficult situation due to the Covid-19 pandemic because this directly affects businesses to bear more costs, making economic recovery even more difficult. Therefore, businesses suggest that the Government's Advisory Council for Administrative Procedure have opinions with the People's Council and the People's Committee of Ho Chi Minh City. Ho Chi Minh City considers putting off the above fees until December 31, 2022, creating favorable conditions for production and business enterprises to overcome the economic consequences of the pandemic in 2021.
For import and export goods, the volume of goods declared in the provinces outside Ho Chi Minh City are twice as high as those opened in Ho Chi Minh City. Therefore, businesses focus on declarations in Ho Chi Minh City which causes congestion. Goods stored in bonded warehouses, temporary import and re-export, goods in transit, transshipped goods across borders also have higher fees than imports and exports. The fee applied to the container is 8.8 times higher, the fee for liquid bulk cargo is 3.3 times higher than the fee for the corresponding import-export shipment declarations in Ho Chi Minh City
Therefore, businesses propose to adjust the fees in the direction of fairness and uniformity for all import and export shipments, temporary import and re-export, goods stored in bonded warehouses, goods in transit, transshipped goods and declaration. In addition, it is necessary to adjust to reduced income in the direction of fairness, cut costs for businesses, not create a further administrative burden and administrative procedures. That is, a general fee of 250,000 VND/container will be applied for a 20ft container; 500,000 VND/container with 40ft container and 15,000 VND/ton for liquid cargo, bulk cargo not packed inside container for all import and export shipments, temporary import and re-export, goods stored in bonded warehouses, goods in transit, transshipped goods and declaration.
According to Section a, Point 4, Article 1 of Resolution No. 10/2020/NQ-HDND dated December 9, 2020 of the Ho Chi Minh City People's Council "The total amount of fees for using infrastructure at ports of Ho Chi Minh City, after deducting expenses for toll collection, shall be remitted into the City budget for management and arrange for targeted use for investment and improvement of transport infrastructure connecting seaports in the city".
Up to now, Ho Chi Minh City has not yet publicly announced the use of the above-mentioned sources, while in fact businesses have had to bear many types of fees for infrastructure construction such as toll and BOT fees. … Seaports also charge a variety of fees related to wharf infrastructure such as wharfage, container storage fees, storage fees, and container handling fees. Finally, businesses suggested TP. Ho Chi Minh City will publicize revenues and expenditures, announce the time and plan to use the revenue from the above sources in order to avoid the situation that businesses are subject to "charges and fees".
“Previously, according to the Resolution of the People's Council of Ho Chi Minh City, the time to collect fees for using infrastructure and public services at ports will start from April 1 to here."
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