Revenue from the customs sector in HCM City fell in the first five months of the year due to a decline in import tax rates agreed to under several trade agreements that took effect earlier this year, according to the city’s Customs Department.  — VNA/VNS Photo

HCM CITY — Revenue from the customs sector in HCM City fell in the first five months of the year due to a decline in import tax rates agreed to under several trade agreements that took effect earlier this year, according to the city’s Customs Department.   

The information was released at a meeting held on May 30 to review the city’s socio-economic development in the first five months of the year.

Customs revenue reached VNĐ39.500 trillion (US$1.72 billion) in the first five months, accounting for nearly 37 per cent of the plan, a drop of more than 6 per cent over the same period last year.

The Customs Department was asked to target VNĐ108 trillion in collections for the city’s budget this year, VNĐ1 trillion lower than the target set last year.

But because customs revenue is expected to fall by about VNĐ11 trillion in 2018, it will be difficult for the department to achieve the target. 

The meeting also discussed problems related to overloaded infrastructure at seaports.

Cát Lái Port in District 2 remains overloaded, with the surrounding area suffering from traffic congestion most of the time, while the other ports are operating at a much lower capacity (30 per cent).

Cái Mép Port is also operating at a much lower capacity, because some container trucks want to avoid Highway 51, which is not in good condition.

In the first five months, the city’s total revenue reached VNĐ155.217 trillion ($6.78 billion), with many kinds of taxes increasing over the same period, such as corporate income tax,VAT, personal income tax and registration tax.

The city’s total retail sales of goods and services increased over the same period, contributing significantly to overall economic growth.

Retail activities of the city have been focused on quality and good performance, ensuring supply of goods for people’s daily needs.

Speaking at the meeting, Nguyễn Thành Phong, chairman of the municipal People’s Committee, said the city’s economy, however, was facing many challenges.

Phong asked the Department of Industry and Trade to continue developing a list of key products that would create high added value.  

He urged the HCM City Investment Trade Promotion Centre to prepare for the coming major events, including a conference on co-operation in trade and investment promotion in the southern region and investment promotion conferences in the city and in the Central Highlands province of Gia Lai.

The centre has also been asked to improve investment and trade and promotion activities with other countries.

In addition, Phong asked that the Department of Culture, Sports and Tourism to continue improving the quality of tourism products and services, focusing on water tourism. — VNS