HCMC sees state budget eroded in July

HCMC sees state budget eroded in July

Minh Tam and Quoc Hung

Completely-built-up (CBU) auto imports in July are down against the same period last year – PHOTO: QUOC HUN

HCMC – The HCMC budget took a hit in July from a plunge in import revenues from key products like automobiles and fuels, according to data by the HCMC Customs Department.

Total spending on cars imports in the month between June 16 and July 15 reached US$5.33 million with 288 units compared to US$26.46 million and nearly 1,600 units in the previous 30 days.

With a sharp fall in auto imports, the city’s budget saw its revenue down by VND700 billion (US$30.85 million). At the Hiep Phuoc Port Customs Office where customs procedures are performed for most imported cars, the revenue plunged by half in the first half of July versus the previous 15 days.

In addition, revenue from fuel products including diesel oil, heavy fuel oil and jet fuel amounted to US$179.3 million this month, down US$20.5 million from last month. The decline has resulted in a revenue contraction of VND90 billion for the State budget.

Imports of iron and steel, and other key products decreased US$7.34 million to US$167.7 million, causing a revenue shortfall of VND40 billion for the city.

Moreover, mobile phones and phone components, textiles, pharmaceutical products, household appliances, machinery and equipment also posted lower import value than last month.

Car imports tumble in July

Vietnam spent US$170 million importing about 6,000 completely-built-up (CBU) automobiles in July, down 2,000 units against the previous month, according to data from the General Statistics Office.

Over US$1.2 billion was spent on 57,000 CBU cars in the January-July period, a respective year-on-year decline of 15% and 5.5%. Thus, car imports decreased in both value and volume.

Auto traders said consumers are waiting until 2018 to buy cars when import duty on CBU autos from ASEAN countries fall to 0% from the current 30%.

However, some auto traders advised consumers to buy cars this year as auto retail prices have moved down and are almost equivalent to prices in regional countries thanks to promotion programs. However, consumers thought that discounts offered by traders cannot match the forthcoming fall in the import duty.

In the first half of the year, more than 134,000 cars were sold, inclusive of locally-assembled vehicles, equivalent to the same period last year.

According to the General Statistics Office, in the first seven months of 2017, total imports of autos and auto parts for local assembly reached over US$3.1 billion, down 9.4% year-on-year.

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