|1. Dong Tam Group|
Category: Building Materials
City: Long An Province
|2. Bien Hoa Sugar JSC.|
Category: Food Manufacturing
City: Dong Nai
City: Ha Noi
|4. Matexim Hai Phong JSC.|
Category: Building Materials
City: Hai Phong
|5. DAPHARCO JSC.|
City: Da Nang
|6. Thu Duc Trading JSC.|
Category: Electrical Goods
City: Ho Chi Minh
The massive volumes of cigarettes smuggled into the country are proving to be a big drain on the Government's revenues.
It was around 870 million packs in 2010, or 22.9 per cent of all cigarette consumption in the country, but fell to 750 million packs and 18.2 per cent last year.
Last year, it translated into lost taxes of VND3.4 – 3.6 trillion (US$163.4-173 million).
The favourite contraband brands used to be JET and HERO though ESSE Lights from South Korea has also become popular since the end of 2010. It is smuggled in through the northern border provinces of Quang Ninh and Lang Son.
Most of the smuggling otherwise occurs through southwestern border provinces.
Authorities estimate that the domestic tobacco industry loses sales of 18,000 tonnes of raw materials due to the smuggling and more than 50,000 jobs.
It also means an annual drain of $400 million in foreign currency and a major hurdle to the development of the domestic industry.
Pham Kien Nghiep, general secretary of the Viet Nam Tobacco Association, said the smuggling was focused on the southwestern region because of the long borders with Cambodia and Laos and the ease of transport from those countries.
Many local people were tempted into the illegal trade due to poverty, he said.
With Cambodia and Laos imposing low taxes on tobacco, prices there were low, and smuggling into Viet Nam was lucrative, he said.
Thus, a pack of JET fetches a profit of VND6,000-7,000 once it is smuggled into the country.
Market management forces stretched too thin to be able to cope with the smuggling besides which there is little co-ordination between various agencies.
As for the smugglers, they are using increasingly sophisticated methods, making it hard to detect them.
|< Prev||Next >|
» Master plan to tackle river pollution
» Littering fines as high as VND1 million to be enforced
» Capital to focus on areas of chronic flooding
Latest Category Posts
- Vietnam told to beware of the “oil refinery movement”
- Vietnam tries to hold cashew nut export prices to rescue growers
- Vietnam has new Finance Minister
- Weakening purchasing power discouraging sales, stock clearing effort
- Users fall prey to mobile millionaire games, again
- Vietnam improves seafood quality
- PM approves Viettel restructuring plan
- Vietnamese economy recovers after hitting bottom
- Buildbank takes shape, raises controversy
- VPBank, VCCorp enter partnership
Random Category Picks
Popular Category Posts
- In economic recession, Vietnamese still spend money on luxurious cars
- Vietnamese billionaires better known in western world
- Enterprises agree to first BPO partnership
- MobiFone blocks 18 spam SMS numbers
- Newspaper names VN’s 100 strongest brands
- The Vietnamese billionaires who return from East European countries
- Vietnamese steel makers hurt by deficit
- VN int’l fair boosts up handicraft and wood industry
- MOIT lends a hand to EVN to raise electricity price
- Who is the real owner of “Vinacafe”?
- Officers seize GmB milk, find new violation
- Vietnam vows to restrain prices to curb inflation
- Google fined $7 million over hotspot data grab
- Fast food chains hunt for retail premises, real estate market warms up
- Cbank takes move to stabilize forex market, but not gold
- Samsung’s $2 billion project goes “incredibly quickly”
- Shrimp industry beset by problems
- Who will buy Vietnam Airlines’ shares?
- Trang Tien Plaza changes appearance, which will bring good luck?
- Vietnam’s footwear to enjoy EU’s preferences