Customs Sector Determined to Ease Trade Deficit & Curb Inflation

General Department of Customs estimated that the deficit still continues since Vietnam is in period of focused development investment into production with machines imported, materials not adequately produced or not self-produced (both serving domestic production and processing for export). Therefore, it is very challenging to restrain deficit in Vietnam this time.

 

According to Mr Bui Thai Quang – Deputy Chief of Secretariat of Customs General Department, reducing deficit and curbing inflation lied mostly in import and export balance and structure of commodity groups, which needs to encourage export and limit import. Vietnam could adopt effective technical barriers measures on unnecessary commodities, which helps stabilise Vietnam’s trade balance as well as kick up export to compensate deficit according to articles regulated by WTO. At the same time, it also needs to adopt tariff measures and solutions of credit to restraint import of unnecessary consumable goods. Work out suitable measures to retain import structure of necessities and move toward restraint on unnecessities.

 

Agreeing with the Customs, Director General of Department for Service Economy (Ministry of Planning and Investment) Luu Quang Khanh said, 2011 will see Vietnam’s import and export turnover jump up by 10 percent against 2010. According to experts restraint of deficit requires reasonable restructure in imported goods.

Economic expert Vu Dinh Anh said, the proportion of consumable goods only accounts for about 10 percent of total import turnover, which means reduction in this group import cannot cause the significant decrease in national import turnover. The two commodity groups include: imported machines and equipments accounting for approximately 30 percent and production materials accounting for 60 percent in import turnover, which need rebalancing to limit and reduce import. Also said Mr Anh, the increase in quantity of import is alarming. 2010’s import turnover of US$ 82.8 billion over total US$ 100 billion was too high, which kept so powerful control on economy and goods’ price.

 

In order to serve activities of fighting deficit, curbing inflation, said Mr Bui Thai Quang, at the moment, the Customs needs to speed up the construction progress and implement data software programme to replace the inappropriate initial one; issue procedures on construction, income, update database of list of goods, tariff and goods classification, adopt tariff on goods which are of customs clearance and timely inform investigation results of classifying goods to stage of customs clearance as soon as possible (according to Circular 49, within 5 working days), which will be the base for collecting and updating database to make up consistency in the whole customs.

 

Some customs offices reflected, there’s a fact that there’s issued by some ministries and departments technical standards and conditions for customs clearance of some specific commodity but there hasn’t been the list attached. To build criteria for customs clearance, Ministries and departments need build a list of commodities which need restrainting on import (with HS code) with adoption of some technical barriers such as: certifying import, national investigation on quality, food hygiene, increase in import quality standards, animals and plants quarantine etc.