The World Bank (WB)’s Board of Executive Directors on November 10 approved US$65.9 million in no-interest loan for Vietnam to improve the effectiveness, efficiency, accountability and transparency of Vietnam’s Customs administration.
The Vietnam Customs Modernization Project aims to strengthen the capacity of the Customs administration of Vietnam to ensure that it is able to make an efficient and effective contribution towards the government’s objectives with respect to trade facilitation, revenue collection, preparation of foreign trade statistics, community protection and national security. The project would be a key factor in facilitating Vietnam’s accession to the WTO and securing the gains from greater integration into the world trading system, said Rakesh Nangia, Standing Deputy Director of the WB in Vietnam, who is acting as Country Director for Vietnam.
“A well-performing and ethical Customs administration makes a major contribution to revenue mobilization, assists governments to facilitate trade and investment, and increases confidence in the quality and integrity of government institutions. A streamlined, effective Customs administration also provides timely and accurate foreign trade statistics, and helps protect society from transnational crimes such as counterfeiting, smuggling or narcotics trafficking. Striking an appropriate balance between these apparently competing demands is the key challenge facing all Customs and border management agencies today,” according to Pham Minh Duc, who leads the project team in the WB.
The Project is expected to achieve its objectives by: (i) introducing modern Customs systems and procedures based on internationally agreed standards and best practice; (ii) improving the organizational structure and strengthening the human, financial and physical resource capacity of the General Department of Vietnam Customs; and (iii) introducing appropriate information and communication technology to improve effectiveness, increase transparency and lower transaction
costs. The project builds upon the on-going efforts of other donors, and will seek to reinforce their inputs.
The project will provide consulting services, training, technical assistance and appropriate infrastructure to support three key operational components and one support component. It will have a total cost of US$77.7 million, of which US$65.9 million will be financed by the WB and US$11.8 million by the Government.
The project’s 4 components provide a structured approach or pathway to close the gap between the current situation, as outlined in the diagnostic study, and the desired future state, as articulated in the new business model.
Lan Anh
Vietnamese
