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Stop tax exemption for small value imports: Less worries about 'slow shipping'

Việt NamViệt Nam05/12/2024

With the suspension of tax exemption for small-value import orders, logistics businesses and customs agencies are forced to optimize processes to reduce the burden on procedures and customs clearance, ensuring speed and avoiding system congestion.

Container trucks carrying e-commerce goods from China to Vietnam at Bang Tuong border gate, bordering Lang Son province - Photo: CONG TRUNG

Many experts and businesses have recommended the same when talking to Tuoi Tre about the draft report of the Ministry of Finance sent to the Prime Minister proposing to abolish the policy of exempting value-added tax (VAT) for small-value imported orders, under 1 million VND, via e-commerce platforms.

Although it is affirmed that the budget will increase revenue by hundreds of thousands of billions of VND each year, many opinions expressed concern that tax collection implementation will cause congestion and prolong the time. delivery, increased shipping costs...

Must solve customs clearance bottlenecks

Speaking to Tuoi Tre, a business that transports goods for Shopee, Lazada and TikokShop... said that an e-commerce container can contain up to 15,000 small orders. The process of classifying, checking and applying customs codes to each item not only increases the workload but also extends the customs clearance time from a few hours to many days.

If the goods do not provide complete information or there are errors in the declaration, the shipment will be held at the border, causing delays in delivery.

"Since November 2024, the Ministry of Finance has directed the General Department of Customs to strengthen management and require strict handling of shipments from e-commerce platforms that are not registered to operate in Vietnam or have falsely declared values. Packages that are intentionally divided into small packages to avoid taxes are also on the list of thorough inspections," he said.

According to statistics from VNPT Post and Telecommunications Corporation in March 2023, every day there are 4-5 million small orders with a value of less than 1 million VND transported from China to Vietnam, with an estimated total value of up to 45 - 63 million USD. Due to exemption from VAT and import tax, cheap foreign goods dominate the market, causing great pressure on domestic enterprises in recent times.

With the suspension of tax exemption for these orders, logistics enterprises will have to optimize their processes to adapt to the large workload in the coming time. The customs system must also optimize the process of dividing green channels (exemption from inspection), yellow channels (document inspection) and red channels (detailed inspection) to reduce the burden on customs clearance processing stages, ensuring a quick process without clogging the system.

Talking to us, Mr. Nguyen Xuan Hung - Head of the Logistics Department for E-commerce of the Vietnam Logistics Service Enterprises Association - said that close coordination with international partners, especially from China, to classify goods right at the point of departure will reduce the workload at domestic warehouses and customs.

Accordingly, shipments need to be checked and data matched with customs declarations before entering Vietnam. "If well organized, the customs clearance process can be significantly shortened, taking only 3-4 hours for goods to cross the border to Hanoi," Mr. Hung said, adding that improving processing capacity at warehouses and customs offices will be the key to faster movement of goods.

Logistics businesses innovate to adapt

In preparation for the implementation of the new policy, many Vietnamese logistics enterprises have proactively invested in technology and expanded their operations. Mr. Nguyen Thanh Son, Deputy General Director of Viettel Post, said that as one of the highly competitive fields, delivery costs are decreasing. In just the past three years, the cost of this service has decreased by 40% even though other costs have increased.

Viettel Post is also about to launch the first cross-border wholesale e-commerce platform in Vietnam, VIPO Mall. With this platform, the entire process from ordering, payment to shipping is integrated, helping to shorten delivery time by 3-7 days compared to conventional services. Not only for import businesses, VIPO Mall also supports the export of high-quality Vietnamese goods.

Taking advantage of its logistics strengths, Viettel Post has also built Lang Son Logistics Park - a modern logistics center covering 144 hectares with a capacity to handle up to 561,000 trucks per year. According to SSI Research, this project is expected to generate revenue of VND900 billion per year, contributing significantly to the development of Vietnam's logistics industry.

While many logistics companies focus on cross-border e-commerce, Sendo Farm is accelerating in the domestic market with clean agricultural and food products. Mr. Tran Hai Linh, CEO of Sendo Farm, said that the unit aims to reach 100 million USD in revenue by 2025. To do this, the unit is constantly expanding warehouse space, improving technology and cooperating with reputable suppliers nationwide.

With a 5,000m² warehouse in Ho Chi Minh City, Sendo Farm is capable of handling more than 200 tons of goods per day, meeting the needs of more than 30,000 customers. The entire process from storage, processing to transportation complies with the highest food safety standards.

"We are also providing free shipping to more than 50,000 delivery points in Hanoi and Ho Chi Minh City, and plan to expand to other provinces and cities in 2025," said Mr. Linh.

According to Mr. Nguyen Xuan Hung, applying technology in e-commerce logistics is not only a trend but also a vital factor. Applying advanced technologies such as data analysis, automation and e-commerce platform integration has helped many logistics enterprises create outstanding competitive advantages. "Without applying technology, logistics enterprises are almost unable to compete in both domestic and international markets," Mr. Hung affirmed.

According to Mr. Hung, the implementation of VAT collection by authorities for e-commerce not only poses a big challenge in terms of time and cost, but also creates motivation for the Vietnamese logistics industry to develop more sustainably.


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