Changes in polices on sales at border gate see many shops and supermarkets close their doors.
Many stores and supermarkets at the Moc Bai Border Gate on the Vietnam - Cambodian border in Tay Ninh province have decided to close down.
GC Duty Free Hypermart, one of the two largest duty free supermarkets at the border and operated by The Ky Vang (Golden Century) will close from May 5. This is due to a slump in sales caused by changes in policy since 2014, according to Mr. Pham Van Son, Deputy Head of GC’s Board of Management.
First was Decision No. 72 on alcohol, signed by the Prime Minister and taking effect in January 2014. Under this new policy businesses were not permitted to sell duty free alcohol, including wine and beer, to travelers passing through the border gate.
Second was Circular No. 109/2014/TT-BTC issued by the Ministry of Finance and taking effect last October. Depending on the type of goods, imported products in the non-tariff sections of border gate economic zones are subject to taxes, such as import taxes and special consumption tax or value-added tax.
GC has conducted discount programs since before the Lunar New Year, with many items discounted by 70 per cent. On April 26 the supermarket had just one aisle of products for sale, primarily detergent, fabric softener, and hair coloring products. All had been discounted by 50 per cent.
Some 90 per cent of duty free shops and supermarkets at the Moc Bai Border Gate have now closed down. “Many businesses thought that the changes in policy would have a huge impact on them so they quickly retreated,” said Mr. Son. The remaining supermarkets are considering whether to also close down.