Title: Status and Challenges of Trade Facilitation and Supply Chain Efficiency Improvements in Vietnam: Economic Corridors for Trade Facilitation

Transcription

1 Asia-Pacific Trade Facilitation Forum 2011 COEX, Seoul, Republic of Korea COUNTRY NOTE- VIET NAM Title: Status and Challenges of Trade Facilitation and Supply Chain Efficiency Improvements in Vietnam: Economic Corridors for Trade Facilitation Dr. Nguyen Manh Quyen Deputy Director General Viet Nam E- Commerce and Information Technology Agency - MOIT Seoul, 4-5 October 2011

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3 Vietnamese government issued some other policies to implement international cooperation and arrange state budget for building infrastructures, simplifying administrative procedures as well as action plan to realize economic strategies development. For example, in July 2008 the Prime Minister signed Decision No. 98/2008/QD-TTg on approving the development plan economic corridor for provinces Lang Son - Hanoi - Hai Phong - Quang Ninh to 2020 with the purpose to develop two corridors and one economic belt Vietnam - China's compliance with the main principles

4 Especially, there are also three (03) big projects bring advantages of a corridor approach to trade facilitation (i) Project the National Single Window Customs Mechanism for exports, imports, transit goods and means of transport on entry, exit or transit (ii) Project Information systems management and treasury budget (TABMIS), with a strong emphasis of its goals which are to modernize the state budget management consisting of the different stages of implementing; (iii) Project Electronic Certificate of Origion (ecosys- operated by Ministry of Industry and Trade) is providing onle public services sucessfully for enterprises at the high levels of securty with national PKI-CA.

5 Institutional issues Responsible agencies for economic corridor development in Vietnam are Ministry of Planning, the Ministry of Finance, Ministry of Trade and Industry, Ministry of Transport, Ministry of Resources and Environment, some other government agencies and local state agencies in provinces Responsible agencies for trade facilitation in Vietnam are agencies, units of the Ministry of Finance, Ministry of Trade and Industry, Ministry of Transport, Ministry of Health, Ministry of Agriculture and Rural Development, Ministry of Resources and Environment, local state agencies have functions and duties to permit or settle administrative/ trade procedures prescribed by law (called administrative/trade procedures).

6 Mechanisms in place to coordinate across agencies: in some cases, for example in the Customs area- the National Single Window Customs Mechanism for exports, imports, transit goods and means of transport on entry, exit or transit.nsw mechanism is in the first trial step to build an integrated system that allows all stakeholders involved in import-export activities to submit or send standardized information and documents to the single processing unit. The first organizations and agencies that will apply the mechanism include those of the ministries of Finance, Industry and Trade, Transport, Health, Agriculture and Rural Development, National Resources and Environment, and relevant state agencies in localities. The mechanism will be also applied to importers and exporters which have engaged in electronic customs with EDI application to let enterprise have e- declarations, e-clearance.

7 Status and challenges of implementation: Among the various corridors in which Vietnam is involved, there are 03 projects, which function best in terms of trade facilitation (completion of legal framework and operational guidelines, well-operation, ) Project 1. The National Single Window Customs Mechanism for exports, imports, transit goods and means of transport on entry, exit or transit in the first trial step to build an integrated system that allows all stakeholders involved in import-export activities to submit or send standardized information and documents to the single processing unit (On 31/8/2011, the Prime Minister issued Decision No. 48/2011/QD-TTg on the pilot implementation of customs mechanism of single national window).pilot Customs Mechanism of single national window customs applies to export, import, transit goods and transport means on exit and entry or transit in accordance with the Customs Law. As stipulated in the Decision, there are 8 pilot contents of implementing customs mechanism of single national window. And project is also having connection with electronic taxation system. According to the plan of developing e-government in the financial sector, up to 2010, the five online public services will be offered as followings: electronic customs declaration, electronic taxation declaration, public property registration via Internet, budget code issuance via Internet and Forum to exchange ideas on policies with the Financial Minister.

8 Project 2: Information systems management and treasury budget (TABMIS). TABMIS, with a strong emphasis of its goals which are to modernize the state budget management consisting of the following stages: To modernize state budget management from budget planning, execution and reporting to increasing the budget responsibility by the Ministry of Finance; To improve the transparency and efficiency in managing public finance; To minimize the corruption in budget usage; And to ensure the financial security in the national development and integration process. Moreover, the technological modernization is also one of the main goals of the system

9 Project 3: Since 2006-up to now, Ministry of Trade (now is Ministry of Industry and Trade ) actively rolled out the establishment of the electronic C/O system (ecosys) as one of the first electronic public services in the trade sector. According to the approved plan, ecosys mainly focused on the management of C/O data by C/O issuing organizations across the country. The C/O issuing organizations did not have to install particular software but use the software built by the Ministry of Trade based on web technology. As for C/O issued by the Offices of Export Import Administration, the Offices could update data online in ecosys website at Annually, the system ecosys has been collecting information of around several millions C/O forms issued throughout the country. Electronic C/O was applicable for preferential forms issued by the Ministry of Industry and Trade including forms A, D, E, S and AK. Furthermore, enterprises must have computers connected to Internet and card readers connected to the Ministry s MOT- CA system (now MOIT-CA )and also partly based on EDIFACT (UN/ISO 9735).

10 Some performs worst in terms of trade facilitation such as administrative procedure and electronic business documents in many state agencies have not been properly standardized or harmonized. Computer network systems of some state agencies are disconnected each other and database cannot synchronized based on international standards. The main barriers to the development and smooth operation of these economic corridors/ trade facilitation are restrictions of - transport infrastructure, -electronic systems, -human resource ; and -business processes and standards so that Vietnam needs total solution and supports from potential partners to have projects for capacity building, investment for different areas such in industry, financial/ customs, transport,

11 Contents (3) Lessons learned For Vietnam in general, beside hard infrastructure improvements, it is necessary to set up an unique MIS (Management Information system), in that completion legal framework, standardization of business processes, tranining manpower, electronic software applications, need to be addressed in order for corridors to facilitate international trade more effectively. The main advantages of a corridor approach to trade facilitation are promoting international trade, reducing costs; and disadvantages are huge budget investment, longterm implementation and trials,.. With support of ESCAP, ADB, UNNExT to ensure economic corridors do contribute effectively to trade facilitation and development, a lot of things can be done at the regional/sub-regional level such as setting programs and projects to support government agencies in making policies, expert exchange programmes in different areas, MIS for cross-border trade; or support enterprises in technology for trade development, sharing knowledge for success business models and make trial application to bring competitiveness in domestic/ global markets.

12 Proposed paperless initiatives to be considered / implemented to facilitate trade along these corridors (in areas of e-business, Trade Facilitation and Supply Chain Efficiency Improvements) Ideas/ Project proposal Advanced MIS for cross-border trade in 3 steps as follows Step 1- trial: Connecting 5-10 State Agencies of different countries in several areas and to implement exchange information and business documents based on standardized processes with International EDI standards. Initially focusing on customs procedures, supply chain in industries, followed by the upgrading of standards framework, the development of trade finance, integration of freight forwarding Step 2: Evaluating expansion possibilities for specific industries in each country, assessment success factors and risks. Step 3: (completion) Expanding MIS system, sharing knowledge and results achieved.

13 Way Forward and Key Recommendations Two proposals in aspects of e-business, Trade Facilitation and Supply Chain Efficiency Improvements are supports of ESCAP, ADB, UNNExT to ensure economic corridors do contribute effectively to trade facilitation and development described as follows - Set up MIS for electronic data interchange (EDI) in some country and give possibility to connect crossborder B2B (business to Business) for promoting international trade and Supply Chain Efficiency Improvements -Support Value-added Networks (VAN) is a hosted service offering that acts as an intermediary between business partners sharing electronic data with standards based or proprietary data via shared business processes and offer VAS- Value-added Network Service for enterprises. Proposed projects should be implemented by specific phases, approved and funded by Governments and potential partners with some work programs/ activities supported by ESCAP, ADB, UNNExT (as a regional network of experts for paperless trade development).

14 Thank you