Ho Chi Minh City authorities have agreed to lower seaport infrastructure fees by half for commodities delivered via waterways by businesses from other localities, starting August 1.
The move, which brings the fees on par with firms in the city, aims to encourage businesses to minimize road use, thereby reducing traffic congestion and accidents. It is also being seen as a measure assisting the firms recover from pandemic impacts.
HCMC began collecting the higher fees with an electronic system in April, but the move elicited protests from companies and organizations about discrimination amidst increased freight burdens so early in the post-pandemic scenario.
Generally, sea transportation is considered a low cost option with the potential for handling significant volumes. However, it only accounts for around 20% of the market share, with road transport taking the lion’s share.
With 60% of the goods transiting through HCMC ports come from other localities, the city had raised taxes for importers and exporters located outside the city, in order to redirect them to Dong Nai, Binh Duong, and Long An seaports.
However, after three months of applying the higher freight rates, from other localities continued to choose the city as their destination.
Currently, the lowest fee is VND15,000 ($0.64) per ton for goods not packed in containers (import and export goods are declared in Ho Chi Minh City) and the highest, VND4.4 million ($188) per 40-foot container (temporarily imported for re-export, stored in a bonded warehouse.).