The General Department of Vietnam Customs unveiled at a recent conference in Hanoi that it is continuing to upgrade its entire information technology (IT) infrastructure, including software management systems, in order to facilitate trade.
Vietnam Customs said the explosion in international trade is forcing it to replace its outdated automated systems to better harness technology to facilitate the application of IT to trade.
Improved technology can be beneficial in improving electronic customs supervision, issuing electronic licenses, preparing certificates of origin and coordinating with functional agencies to carry out the ASEAN one-door mechanism.
In 2014, Vietnam Customs successfully used IT applications to better manage import duty calculations and border gate trade, which helped reduce by two thirds the time to complete procedures at border crossings.
According to a World Bank (WB) report, the average time to complete import procedures at border crossings is still excessively high at 21 days, much higher than Singapore, Malaysia and Thailand.
Vu Ngoc Anh, Vietnam Customs deputy general director said this is an important step forward in providing Vietnam Customs with "state-of-the-art technology essential to expediting movement of commerce" through every international airport, trade zone and potential border crossing.
"We can now begin the process of bringing 21st century business practices to Vietnam’s borders," he added. "Customs modernization will also dramatically enhance our ability to intercept contraband."
Anh said the upgrades will run the gamut from desktops to mainframes, "replacing outdated systems with best practice, off-the-shelf systems."
Anh said Vietnam Customs wants to move to a more automated "knowledge-based system" and away from "laborious keyboard entry" currently used to catalogue the serial number and country of origin of all products coming through Vietnam border checkpoints.
"It's a very complicated system," he said. "We're looking to use new commercially available products that have the ability to create intelligent systems to manage and automate databases and speed imports and exports while maintaining the control expected for safety of trade and our citizens."
Economic exports suggested that the customs sector should push information technology application in electronic customs supervision, reduce congestion at border gates, shorten time of storage, grant electronic license, declare electronic certificate of origin (C/O) and connect to the ASEAN one-door mechanism.
Not only government agencies but also businesses should take part in administrative reform in customs policy and procedures. They should seek ways to improve business environment and increase competitiveness.
He also added that the agency recently put an automatic customs clearance system in place.
Utilizing the new system titled – Vietnam Automated Cargo and Port Consolidated System/Vietnam Customs Intelligence Information System (VNACC/VCIS) – businesses can pay their import duties directly via any of 22 participating commercial banks.
“The technology overhaul helps to substantially reduce time for businesses,” said Anh.
A recent study showed that if Vietnam cut the time for carrying out customs procedures to the level of other ASEAN countries by about 13 to 14 days, the country's GDP would increase by roughly 14%.
For his part, Dr. Nguyen Dinh Cung, Central Institute for Economic Management (CIEM) Director said that streamlining customs procedures increase Vietnam’s competitiveness and boost exports in a most effective manner.
Lastly, Nguyen Van Than, Vietnam Association of Small and Medium Business Association vice president noted that simplifying customs procedures helps reduce cost for business, resulting in lower prices and bolsters price competitiveness.
VOV
