Port infrastructure fee reduction to decongest HCMC road system

Ho Chi Minh City has proposed lowering seaport infrastructure fees by half for commodities delivered by waterway, with the same amount applied to firms in the city and other localities.

The proposal was submitted by the HCMC Department of Transport to the municipal People's Committee, in order to encourage businesses to minimize road use, reducing traffic congestion and accidents.

Sea transportation is considered low cost with significant volume. However, it only accounts for around 20% of the market share, with the remainder comprising road transport.

Authorities also advocated lowering the fee for provincial businesses to the same level as those in the city, assisting firms in resuming production and operations following the pandemic.

As 60% of the goods transiting through HCMC's ports come from other localities, the city has raised taxes for outside importers and exporters, in order to redirect them to Dong Nai, Binh Duong, and Long An seaports. However, after two months of higher freight rates, other provincial firms continue to choose the city as their destination.

HCMC has applied new fees since the beginning of April, which are collected via an electronic system. However, many companies and organizations cited discrimination amid the increased freight burden, especially post-pandemic.

Seaport infrastructure fees are expected to generate VND16,000 billion ($690.3 million) by 2025, according to the transport department. Much of the proceeds will be invested in port-related projects. This is part of the government's plan to raise investment in roads connecting ports, which have been delayed for years due to a lack of resources.