Vietnamese enterprises’ proposals for expanding the scope of tax-free buying zones, increasing storage duration of duty-free goods and developing duty-free goods selling software have been put forth for discussion.
Permission for duty-free goods business has helped develop tourism, investment and trade. This model also helps improve Vietnam’s competitiveness of duty-free goods business against other countries in the region and the world. Tax reduction and exemption encourage tourists to buy duty-free goods when they leave international border gates, airports like Tan Son Nhat and Noi Bai international airports, thus bringing a good sum of foreign currencies for the country.
Duty-free goods proposed for cross-border traders
According to the Duty-free Goods Business Centre affiliated to Hanoi Trade Corporation, in 2012, its revenue of duty-free goods business approximated VND70 billion (over US$3 million). In the first quarter of 2013 alone, it reached nearly VND17 billion (more than US$1.3 million). Given good points of duty-free goods selling, the government has been asked to allow selling duty-free goods to people entering the country. With 5 million Vietnamese people residing abroad and a large number of Vietnamese people going abroad to work, study and travel, the demand for buying gifts and consumer goods is very high. According to international practices, selling duty-free goods on airplanes and at entry gates is an indispensable service at international airports. In many countries, terminal systems are designed as commercial centres where duty-free goods sold to incoming visitors are an important business. The prohibition of duty-free goods selling to entry visitors in Vietnam has weakened business capacity of merchants and reduced incomes in foreign currencies. If duty-free goods sale to incoming visitors is allowed, we will earn over US$11 million of revenue and US$1.3 million of profit a year.
Business conditions opened
As duty-free goods business is very effective, Vietnamese enterprises proposed expanding the scope of tax-free buyers, increasing storage duration of duty-free goods and developing duty-free goods selling software.
According to a representative from Noi Bai International Airport (Hanoi), to make duty-free goods business more effective and convenient, the scope of the business should be expanded. Entry people should be allowed to buy duty-free goods to meet their demand, increase forex earnings for the country, generate more jobs, and enhance business efficiency for enterprises. The duration for the stay of duty-free goods should be prolonged from 365 days (12 months) to 18 months because many items are sold not very fast but still have to be displayed at the request of suppliers/manufacturers. Thus, the longer duration will better meet customer needs while reducing procedure for extended period and re-export for enterprises.
A representative from Hanoi Trade Corporation added that the 365-day keeping duration of duty-free goods inhibits traders from diversifying items for buyers. This regulation causes traders to face the expiry of declaration documentations for duty-free goods.
Duty-free goods sellers also propose supplementing foreign currencies in duty-free goods buying to facilitate buyers and customs authorities.
Trinh Hai
Đăng ký: VietNam News
