Intensifying Digital Transformation in Customs Operations

Prime Minister Pham Minh Chinh recently issued a directive to ministries, departments, and local jurisdictions, urging them to intensify efforts and optimize the impact of digital transformation in the customs sector.

Vietnam’s customs sector is steadfast in its commitment to executing a more extensive digital transformation across all areas of its operation

Document digitization, modern equipment

In the context of expanding globalization and the growing e-commerce sector, the role of digital transformation in the customs sector has become increasingly important. The Government and the Prime Minister have recently promulgated numerous instructive documents pertaining to digital transformation in the customs sector. The Ministry of Finance (MoF) and the General Department of Customs (GDC) have been proactive and resolute in directing and administering support solutions for individuals and businesses. They have persistently strived to enhance customs performance and transparency, as well as the management of exports and imports.

However, the world was forecast to remain complicated and unpredictable in the coming time. Domestically, production and business activities are still facing many difficulties.

To further promote and improve the effect of digital transformation on customs, boost import-export and cost optimization, facilitate people and businesses and strengthen State customs administration, the Prime Minister requested MoF and GDC to review and complete legal policies and upgrade information technology systems to digitize customs records in an attempt to move towards paperless customs procedures for exported and imported goods and means of transport on exit and entry. The customs sector will gradually advance toward ending the requirement for customs declarants to submit customs paper dossiers.

MoF and GDC will review and complete the regulatory system relating to certification and specialized inspection of exported and imported goods to promptly detect inadequacies and glitches and request relevant authorities to make reasonable amendments and supplements; speed up reforms, apply information technology and share data with customs authorities to serve customs clearance of goods.

The Prime Minister assigned MoF and GDC to ensure equipment for customs modernization, inspection, supervision and control at border gates and seaports and limit physical contacts between people and businesses with customs authorities to ensure strict regulatory compliance.

MoF and GDC will strengthen cooperation and exchange of customs data information with countries in the region and around the world, especially strategic trade partners with large import and export value to smooth Vietnamese exports to these countries and vice versa.

The Prime Minister also requested MoF and GDC to regularly organize dialogues, remove difficulties and obstacles and assess public and business satisfaction with administrative procedures delivered at customs agencies at all levels; promptly inspect, rectify and handle customs units and officers breaching the law, troubling or harassing declarants, or deliberately delaying resolution or recommending competent authorities for resolution.

Accelerated digitization of cross-border import and export procedures

The Prime Minister tasked MoF with the responsibility of actively collaborating with the Ministry of Public Security. This collaboration is aimed at implementing Decision 06/QD-TTg, dated January 6, 2022, which pertains to the approval of a project on the development of applications for population data, electronic identification, and authentication. This project is designed to serve the national digital transformation for the 2022-2025 phase, with a vision to 2030. A key objective of this initiative is the rapid digitization of cross-border import and export procedures and the construction of intelligent border gates. These measures are expected to reduce administrative procedures and compliance costs for individuals and businesses.

The People's Committees of border provinces will develop master plans for land border gates based on border gate planning decisions on Vietnam's land border lines with China, Laos, and Cambodia approved by the Prime Minister to arrange areas for complex control facilities; working locations for competent forces at border gates; places for gathering, inspecting and supervising imports and exports to facilitate modernization of specialized management, trade and logistics at border gates; prevent congestion of commodities and vehicles to avoid disorder and maintain safety and security in the area.

Ministerial agencies and provincial/municipal people's committees will firmly and consistently perform their tasks and solutions according to the Prime Minister’s Decision 628/QD-TTg dated May 20, 2022 on approval of the Customs Development Strategy to 2030 to actively implement appropriate, timely and effective measures according to authority and law.

Especially, they will improve the effect of digital transformation on customs, serve people and businesses, facilitate trade and tourism, and create a transparent and fair import and export environment to help enhance national competitiveness, prevent smuggling, trade fraud and illegal transportation of goods across borders, ensure social order and safety and protect interests and national sovereignty; and promptly propose and report to the Prime Minister on issues that arise beyond their jurisdiction.

By Hien Phuc, Vietnam Business Forum