Why has Hai Duong achieved a breakthrough in budget revenue?

Ford Hai Duong is a business that makes a significant contribution to the Hai Duong provincial budget.

Setting a record

Hai Duong's total state budget revenue in 2024 reached 30,774 billion VND for the first time, an increase of 38% compared to 2023. Of this, domestic revenue was 26,154 billion VND, an increase of 36.1% compared to the previous year; and revenue from import and export activities was 4,371 billion VND, an increase of 46.1%.

A closer analysis of the 2024 state budget revenue results in Hai Duong province reveals many "telling" figures, with several records set for the first time.

All 16 revenue items are estimated to exceed the projected figures. New milestones in budget revenue collection have been achieved in both domestic and import/export tax collection, across various tax categories, economic sectors, localities, and businesses.

Regarding local areas, Hai Duong City continues to maintain its leading position, with total annual revenue estimated at 2,296 billion VND, exceeding the annual forecast by 89% and increasing by 58% compared to 2023. (District) Gia Loc district is estimated to have collected over 1,951 billion VND, exceeding the target by more than 80%. Nam Sach district collected over 1,770 billion VND, exceeding the target by 45.7% and nearly 2.7 times the 2023 figure. Binh Giang district is estimated to have collected nearly 1,365.6 billion VND, 2.48 times higher than the provincial target. Cam Giang district also collected over 1,000 billion VND in revenue for the first time…

Domestic revenue collection exceeded projections, with many major revenue streams showing significant increases. For example, land use fees reached over 8,688 billion VND, exceeding the projection by 88% and increasing by 98% compared to the previous year .

In 2024, Hai Duong province is estimated to collect 8,500 billion VND in land use fees, exceeding the target by 84% and increasing by over 93% compared to 2023. (In the photo: Thanh Cong ecological urban area in Kinh Mon town)

Overcoming difficulties and obstacles caused by the impact of the domestic and international economy and markets, natural disasters, etc., many businesses have focused on efficient production and business operations, making significant contributions to the state budget. Revenue from the business sector in 2024 is estimated to reach nearly 21,714 billion VND, accounting for 88.11% of total budget revenue and increasing by over 30% compared to 2023.

Of that total, revenue from the foreign direct investment (FDI) sector reached nearly VND 7,948 billion, exceeding the forecast by 35% and increasing by 10% compared to the previous year. Ford Vietnam Co., Ltd. continues to lead among FDI enterprises in terms of budget contributions. Many businesses that did not generate any tax payments in 2023 have also rejoined the "race" to contribute to the budget this year, such as Sumidenso Vietnam Co., Ltd., which contributed VND 184.7 billion; and LEO Paper Products Vietnam Co., Ltd., which contributed VND 53.9 billion...

In addition, through inspections and audits, some cases resulted in high tax arrears, such as Proterial Vietnam Co., Ltd. (64.6 billion VND), Posco Vietnam Processing Center Joint Stock Company (39 billion VND), etc.

Revenue from the non-state industrial, commercial, and service sector reached over 3,821 billion VND, exceeding the target by 42% and increasing by 29%. The main reason is the sudden increase in tax payments from many businesses such as: LEO Vietnam Paper Products Co., Ltd., Hoang Thanh Co., Ltd., Hoang Yen HD Co., Ltd., Ecopark Hai Duong Investment Joint Stock Company, Thanh Cong Group Joint Stock Company , etc.

Revenue from environmental protection taxes, registration fees, revenue from central and local state-owned enterprises, land lease fees, resource and mineral exploitation rights fees, dividends, and shared profits all increased by double digits.

Personal income tax revenue exceeded VND 1.489 billion, surpassing the target by 46% and increasing by 34%. This was due to higher income tax from production and business activities of individuals compared to the same period last year; at the same time, the real estate market showed signs of recovery, leading to a significant increase in income from capital transfers and real estate transfers compared to 2023.

Besides domestic revenue, import and export taxes this year reached their targets early, even before the end of the third quarter, and ended the year with many new highs.

According to Nguyen Van Thanh, Head of the Hai Duong Customs Branch, 2024 was the first year that import and export taxes in the area exceeded the projected amount by more than 52% and increased by 45% compared to the previous year. The branch processed 473,509 import and export declarations, an increase of nearly 20%, with a total value of nearly 17.866 billion USD.

What is the cause?

Hai Duong attracts many businesses, contributing to increased budget revenue. In the photo: Construction work at a factory in the expanded Dai An Industrial Park.

The new peak in budget revenue in 2024 is the result of the unprecedentedly decisive involvement of the units responsible for budget revenue collection. With the motto "putting the people and businesses at the center of service," Hai Duong has always stood by and shared the difficulties of businesses, focusing on accelerating administrative reform, improving the investment and business environment, and removing obstacles and inadequacies in policies and administrative procedures to promote rapid and sustainable business development.

The People's Committee of Hai Duong province has closely coordinated with the Ministry of Finance and the General Department of Taxation to direct the Provincial Tax Department to implement tax and land rent exemptions, reductions, and extensions for businesses. When businesses operate successfully, the province's revenue is also "nurtured" and stabilized, resulting in better-than-expected revenue.

Aggressively recovering outstanding debts is also a solution to increase budget revenue. In 2024, Hai Duong collected 10,647 billion VND in tax arrears. Hai Duong tax authorities issued 3,715 enforcement decisions by deducting money from/freezing accounts; suspending the use of invoices; and issuing 517 notices of temporary travel bans for legal representatives of tax-owing businesses.

There were weeks when the Provincial Tax Department scheduled direct meetings and dialogues with many real estate businesses that owed land lease and land use fees to clarify the reasons for the delay and request commitments on payment deadlines. Besides reasonable and empathetic solutions, for businesses that deliberately procrastinated, the Provincial Tax Department took stronger measures such as proposing a travel ban for business owners and coordinating with Hai Duong Newspaper to publish a list of businesses with large outstanding land lease and land use fee debts.

Officials from the Hai Duong Provincial Tax Department provide guidance on filing e-commerce tax returns.

“The socio-economic development situation has seen considerable growth, with most sectors achieving better results than the previous year, creating momentum for positive revenue collection in 2024. For example, the warming real estate market, the large one-time contributions from real estate businesses in land use fees and land lease fees, and the increase in land registration fees... are all reasons for the positive results in budget revenue,” shared Do Cong Tien, Director of the Hai Duong Provincial Tax Department.

Meanwhile, Mr. Nguyen Van Thanh, Head of the Customs Sub-Department, said that the unit actively applies information technology in carrying out customs procedures, improving management efficiency with 100% of processes automated to ensure quick customs clearance of goods.

We aim to break the record in 2025.

In 2025, Hai Duong province was assigned a revenue target of 27,580 billion VND, a 40% increase compared to the 2024 budget.

To fulfill the revenue collection target and potentially set new records, the Provincial Tax Department will strengthen its capacity to accurately and promptly forecast economic fluctuations both within and outside the province, proposing proactive and flexible revenue management solutions. It will enhance coordination and connectivity, cross-referencing tax management information, combat tax evasion and transfer pricing, and recover tax debts. It will focus on managing capital transfers, real estate transactions, and mineral resource exploitation; and strictly control value-added tax refunds. It will also implement a digital map of business households and effective tax management solutions for individual businesses on digital platforms and e-commerce.

People's Committees at all levels and relevant departments and agencies will continue to implement tasks and solutions to improve the investment environment, enhance competitiveness, and remove difficulties for the production and business activities of enterprises. They will quickly implement projects related to land use fee auctions and bidding for land-use projects, and focus on resolving outstanding projects that have not yet had land use fees calculated to increase budget revenue...

JACKIE CHAN

Source: https://baohaiduong.vn/vi-sao-hai-duong-tao-dot-pha-ve-thu-ngan-sach-401310.html