Vietnam Customs’ efforts behind assessment indexes

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Customs operation at Huu Nghi International Border Gate Customs Branch- Lang Son Customs Department. Photo: H.K

Applying modern management method

Recently, the General Department of Vietnam Customs (GDVC) has coordinated with Authorized Economic Operators (AEOs) to develop the management model that will directly connect the enterprise’s system with Customs system to manage goods produced and processed for export. This is one of the solutions to promote the modern management method and information technology application in Customs procedures towards the goals of publicity, transparency, efficiency and facilitation for the business, which has been implemented by the Customs over the past time. These GDVC’s efforts have been appreciated by many enterprises.

Mr. Lian Garethe, Director of Global Trade Compliance, Intel Corporation, said that the partnership and cooperation between the Corporation and the GDVC is one of the best partnerships. “Seminars on developing a new and effective management model to facilitate concerned parties are not always held in other countries. These seminars held by Vietnam do not only show the commitments of the Government and the GDVC in implementing the goals of the Industrial Revolution 4.0, but also continue to implement goals of trade facilitation program between Vietnam and enterprises.”

Affirming the cooperation of the Corporation with the Customs, Mr. Lian Garethe said that AEOs only accounted for a small part of all enterprises operating in Vietnam, however, they have methodically and strictly prepared and invested in trade compliance programs as well as Customs compliance programs not only in Vietnam but also in the world. Therefore, AEOs deserted to coordinate with the GDVC to develop support tools to facilitate the parties and provide solutions for the Customs to meet requirements on the State management as well as support for not only AEOs but also for other enterprises in Vietnam.

Technology solutions and policy renovations have confirmed the Customs’ determination in innovating management methods in the modern direction as in the statement of Deputy Director General Mai Xuan Thanh at the meeting on developing the management model that is directly connected between the export production and processing enterprises’ system and the Customs’ system.

Over the past time, the amendment, supplementation and new promulgation of a number of Customs legal documents such as Decree 59/2018/ND-CP, Circular 39/2018/TT-BTC, Circular 38/2018/TT-BTC have played an especially important role for the Customs and the business community. Many key issues on Customs procedures, Customs inspection, supervision and control, import and export Duty, tax administration for import and export goods were amended and supplemented under the method of modern management and IT application.

Information Technology Application

For the IT application, besides deployment of new systems, over the past time, the GDVC has taken measures to enhance the efficiency of Customs management by implementing IT application and expanding the public service system facilitating import and export enterprises. Ensuring the stability, security and safe operation of VNACCS/VCIS at 100% of Customs branches; Officially deploying the Scheme on e-tax payment 24/7; Upgrading the IT system for meeting the implementation requirements contained in Circular 39/2018/TT-BTC, Decree 59/2018/ND-CP. The GDVC has implemented the Vietnam Automated System for Seaport Customs management (VASSCM) at seaports, warehouses and yards in many municipal and provincial Customs Departments.

In addition, the online public service system has also significantly contributed in shortening and simplifying Customs clearance time and procedures for enterprises and the people. Currently, 164 of 183 procedures have been processed at level 4, and 9 of 183 procedures have been processed at level 3. Thus, there are only a few procedures processed at level 2 and level 1.

As the Standing Office of the National Committee for the implementation of ASEAN Single Window, National Single Window and trade facilitation, the GDVC has closely coordinated with ministries and sectors to take the initiative in implementing administrative procedures via National Single Window and expanding scope and the number of enterprise participating for deployed administrative procedures. As of August 31 2018, over 1.46 million dossiers of 23,700 enterprises were processed via NSW. For the specialized inspection, the GDVC has closely coordinated with ministries and sectors to implement tasks and solutions on reform of specialized inspection.

With the great efforts in synchronously implementing solutions to shorten the time and cost for enterprises, over the past time, the GDVC has obtained remarkable achievements. According to the World Bank's Business Environment Assessment, Vietnam's business environment ranking in recent years has increased continuously. Specifically, it increased 14 places in 2017 and 8 places in 2016. Consecutively in 2016 and 2017, Vietnam ranked No.4 in 10 ASEAN countries on the index of cross-border goods exchange with the time and cost for import and export at border gates that positively changed compared to the previous years.

Cross-border trade transaction index: Time and cost are shortened VCN- Recently, the World Bank (WB) published the ranking for Business Environment in 2017. Accordingly, the index ...

In which, the time for carrying out procedures at border gates (including preparing documents) for import goods is 132 hours, reducing 6 hours; for export goods is 105 hours, reducing 3 hours. Cost for implementing procedures at border gates (including cost for carrying out procedures at the border gate and preparing documents) for import and export goods reduced by US$ 19.

According to the Annual Global Competitiveness Report of the World Economic Forum, recently, the rank of Vietnam's national competitiveness has significantly improved. Especially, the Global Competitiveness Report 2017–2018 stated, Vietnam is one of the Southeast Asian countries that has sharply increased in national competitiveness, ranking 55th, increasing 5 places compared to 2017 and 20 places compared to 5 years ago.