Customs Sector Fulfils 92.3% of Annual Budget Revenue Target in 10 Months

According to the General Department of Vietnam Customs (GDC), import and export growth has enabled the customs sector to achieve 92.3% of its projected annual budget collection within the first 10 months of the year.

Vietnam's export and import value reaches US$647.87 billion in the first 10 months of the year

Vietnam’s export and import value totaled US$647.87 billion in the first 10 months of 2024, up 15.8% year on year (or US$88.57 billion).

Of the sum, the export value reached US$335.59 billion in the reporting period, up 14.9% year on year (US$43.54 billion) and the import value reached US$312.28 billion, up 16.8% (US$45.03 billion).

In October alone, the import and export value reached US$69.19 billion, up 5.1% (US$3.35 billion) from September. Of the sum, exports and imports accounted for US$35.59 billion and US$33.6 billion, up 4.4% (US$1.51 billion USD) and 5.8% (US$1.84 billion), respectively.

Given that positive performance, the State budget revenue on imports and exports was impressive. The customs sector fetched VND346,283 billion for the State budget revenue in the first 10 months of 2024, equal to 92.3% of the estimate and up 14.5% year on year.

According to the representative of the Import-Export Tax Department, the revenue growth was attributed to the 15.8% year on year growth of taxable exports and imports, with the export value rising by 5.3% and the import value growing by 16.4%.

Key growth sectors include imports of production inputs, machinery, equipment and parts, which saw an 18.6% increase, contributing an additional VND29,600 billion to budget revenue. Imported coal experienced a 31.5% increase in volume and 13.2% in value, boosting revenue by VND3,200 billion. Additionally, imports of crude oil rose by 28.5% in volume and 25.1% in value, generating an extra VND4,200 billion in revenue.

The higher growth of taxable imports and exports than the revenue growth was partly attributed to the implementation of the preferential VAT policy under Decree 94/2023/ND-CP dated December 28, 2023.

In October, budget revenue increased by 16.8% month-on-month, reaching VND 38,298 billion. This growth was driven by higher duties on major imports, including petroleum products (up 59.7% in volume and 67.9% in value), which contributed an additional VND 858 billion; iron and steel (up 64.3% in volume and 52.4% in value), adding VND 1,095 billion; machinery, equipment, and spare parts (up 10.3% in value), yielding VND 584 billion; and auto components and spare parts (up 22.6% in value), which generated an extra VND 492 billion in revenue.

Compared to nine previous months, in October, the Ho Chi Minh City Customs Department regained growth momentum with a 2.31% expansion. Thus, as of October 31, 2024, the budget revenue at 10 major provincial and municipal customs departments accounted for the largest budget revenue of the customs sector, grossing VND297,230 billion, equal to 89.8% of the assigned target and up 11.86% over the corresponding period of 2023.

So far, nine local customs agencies have reported an increase in State budget revenue, while the Ha Tinh Customs Department saw a 1.14% year-on-year decline. Notable growth was seen in several regions, including Thanh Hoa (up 37.43%), Quang Ninh (up 7.24%), Hanoi (up 20.46%) and Ba Ria - Vung Tau (up 22.23%).

By Hien Phuc, Vietnam Business Forum