Opportunity to Promote Radical Reform of Administrative Procedures

Participants at the conference all agreed that customs procedures clearance time, according to the business community, are still complicated and prolonged, costing them more time and money. The issue receiving the attention of the business community, especially export-import enterprises, is reducing the number of customs documents and cargo clearance time. Mr Nguyen Toan, Director of the Department for International Cooperation, General Department of Customs said that trade facilitation in the WTO is aimed to facilitate trade and ensure the balance between convenience and compliance of the law. Also it promotes transportation, customs clearance and collaboration between Customs Department and other agencies. Fundamental facilitation measures proposed in the TFA is information transparency, simplifying procedures, reducing time and cost of procedures implemented in export and import activities.

 

Director of the WTO Centre (VCCI) Nguyen Thi Thu Trang said: "That customs procedures for export take 4 days which is two times higher than regional average and import procedures take 4 days while in the region this takes 3 days on average, is not acceptable." (Prime Minister). “Reducing customs procedures will help reduce trade costs by 2.8 percent for middle-income countries, 2.2 percent for low income countries" (OECD). According to Ms Trang, the FTA promotes a more open, transparent and simple mechanism; standards and requirements to be achieved are well identified. In addition, the TFA will also actively promote the participation of enterprises in the process of administrative reform. Enterprises can detect, report their initiatives and put pressure on the reform of customs procedures.

 

The representative from the State Administration Project for comprehensive growth of the US Agency for International Development (USAID/GIG) Mr Phan Vinh Quang highlighted the Government’s targets to reduce clearance time from the current 21 days to 13 days for import cargo and 14 days for export cargo. The TFA of the WTO also requires Vietnam to follow the same request, with specific and mandatory obligations. This is also a way for Vietnam to improve its competitiveness in international markets.

 

Mr Herb Cochran, Executive Director of AMCHAM in Ho Chi Minh City confirmed that facilitating trade will simplify import and export and customs procedures, accelerate the supply chain, reduce cost from 5 to 15 percent and curb corruption. As a result, small and medium enterprises in Vietnam and other developing countries are encouraged to engage in international trade.

 

In terms of the challenges that Vietnam faces when joining TFA and other free trade agreements, Mr Nestor Scherbay, Director of Customs, Trade & Risk Management Services Co., Ltd said that inconsistency in implementation the WTO and other trade agreements in Vietnam creates instability for investors and businesses. Besides, facilitating international trade is not a strategic objective of Vietnam’s focused global competitive plans and has not yet been a priority implementation. Also according to Mr Nestor Scherbay, a study by the World Bank last year showed that Vietnam does not lack policies, plans and projects, but they are uncoordinated. Consultancy from experts and individuals outside the government does not receive adequate attention. These are the reasons why the implementation of TFA in Vietnam has not been thoroughly performed.

 

For Vietnam to achieve success in facilitating trade, Mr Nestor Scherbay said that this can be achieved through a national action plan and coordinated work by a National Trade Facilitation Committee established by the national government, which works with business and trade stakeholders in a truly effective way. This national effort can only be successful if a regular and meaningful mechanism for ongoing consultations with business is successfully established. This is the goal of the Alliance to facilitate Vietnam's trade. In addition, Working closely together, these are the key elements for Vietnam’s “national team” under the WTO’s new “Law of the Game.”

 

Vietnam must take advantage of technical and other global assistance from WTO donors and international organizations to develop and implement an effective National Trade Facilitation Committee. The National Trade Facilitation Committee must have an effective business and trade consultations partner. The Vietnam Trade Facilitation Alliance is prepared to contribute the efforts, skills and technical knowledge base of business and trade stakeholders that is needed for this national effort. Working regularly and effectively together with experts, they will be the national team to implement the TFA and other trade agreements to assure Vietnam’s national competitiveness.

 

Also at the conference, experts said that departments and agencies need to change the licensing regime towards electronic, because if that requires companies to submit documents in paper style as the present, it is difficult to achieve reform objectives as required by the Prime Minister, as well as difficult to meet the demands of TFA Agreement.