Proposing Hai Phong to free seaport infrastructure for inland waterway goods

29/07/2022

Five business associations related to inland waterway transport include: Vietnam Logistics Business Association (VLA); Vietnam Shipping Agents, Brokers and Services Association (VISABA); Vietnam Shippers Council (VNSC), the Vietnam Inland Waterway Transport Association and Vietnam Shipowners’ Association (VSA) have submitted a written petition to the Hai Phong City People's Committee on the proposal to not collect regional infrastructure fees. seaport border gate for goods transported by inland waterway.

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According to the Associations, the payment of fees for the use of works, infrastructure, service works and public utilities in the Hai Phong seaport border gate area has caused many difficulties for manufacturing and exporting enterprises. Imports and related services have goods through Hai Phong port, limiting competitiveness in the international market and increasing logistics costs are already high.

Especially for goods transported by water means using inland waterway - a mode that is being encouraged by the State to develop.

The associations said that the above toll collection has been going on for more than 6 years, corresponding to an average annual revenue of 1,500 billion VND, three times the amount the State invests in the maintenance of inland waterways.

Leading Hai Phong's revenue from this fee with inland waterway transport is 59.8 billion dong, 51.3 billion dong, 57.1 billion dong, 64 billion dong and 66 billion dong over the years, respectively. 2017-2021, the Associations assessed: “This revenue is too small compared to the average revenue of 1,500 billion VND/year of Hai Phong, but it is very large and meaningful for the inland waterway transport industry and the industry. effectively contribute to the transformation of transport structure, reduce the load for road transport to and from Hai Phong, reduce emissions of environmental pollution and reduce road traffic accidents at an alarming rate”.

Therefore, the Associations raised the question "Is the object of application correct and appropriate for inland waterway transport?".

Because, from reality, the city. Hai Phong's infrastructure fee has reduced the volume of goods through the seaport, losing its advantage as a regional transshipment port. Before toll collection, from 2012-2017, the annual growth rate of cargo volume through Hai Phong seaport reached 7.8%/year, Quang Ninh reached 3.5%/year. After collecting fees from 2017-2020, the growth of goods through Hai Phong seaport was halved, only 3.9%/year, while Quang Ninh seaport increased more than 4 times, reaching 15.3%/year.

Moreover, the Covid 19 pandemic has had a direct impact on the supply chain, increasing logistics costs, affecting import and export. Therefore, the Associations believe that Hai Phong should consider charging for seaport infrastructure with goods transported by water and have policies to support businesses such as Thanh Hoa and Ha Tinh.