Customs Modernization: From VNACCS to Digital Customs. Part 1: The "Revolution" of VNACCS

However, as the nation’s integration and economic growth accelerate and the Fourth Industrial Revolution advances, the VNACCS/VCIS system has revealed certain limitations. This underscores the urgent need for system upgrades to accommodate the country’s growing economic scale and digital transformation requirements.

This article series, “Modernizing Customs: From VNACCS to Digital Customs,” revisits the achievements and benefits of the VNACCS/VCIS system and addresses emerging challenges in the current context.

The VNACCS/VCIS system, introduced on April 1, 2014, through non-refundable aid from Japan, has been the backbone of Vietnam's customs IT infrastructure for the past decade.

Professional activities at Cao Bang Customs. Illustration photo: Thái Bình

A Milestone in Modernization

Before its implementation, customs operations relied on scattered IT systems across local units, which limited the efficiency and scope of modernization efforts.

VNACCS/VCIS marked a revolutionary shift, enabling the Customs sector to build a centralized IT system that became the foundation for subsequent modernization initiatives.

At the beginning of 2015, the most significant achievement of the VNACCS/VCIS system was enabling Vietnam Customs to successfully establish a centralized IT system. This milestone laid the foundation for Vietnam Customs to implement all subsequent modernization programs aligned with the Government’s development goals.

Before the introduction of the VNACCS/VCIS system, the IT infrastructure of the Customs sector was fragmented across local customs units (provincial and district-level departments). To centralize data and integrate satellite IT systems into VNACCS/VCIS, the entire sector undertook the massive task of migrating data from nearly 200 locations, each representing a customs sub-department or specialized team directly managing specific areas.

Practical results have proven that the VNACCS/VCIS system enabled Vietnam Customs to meet and even exceed the targets set forth in the Customs Development Strategy to 2020 under Decision No. 448/QD-TTg, dated November 25, 2011, issued by the Prime Minister.

Notably, the system has contributed significantly to trade facilitation and sustained high growth in Vietnam’s import-export turnover. From US$298 billion in 2014, trade turnover rose to US$328 billion in 2015, an increase of US$30 billion in just one year. Subsequent milestones include US$400 billion in 2017, US$500 billion in 2019, US$600 billion in 2021, and a record US$730 billion in 2022.

Despite global challenges, including the post-COVID-19 recovery, Vietnam’s trade turnover reached over US$680 billion in 2023. By 2024, the figure is projected to approach US$800 billion, nearly tripling the 2014 level.

Transformational Benefits

Over the past decade, the VNACCS/VCIS system has become a cornerstone of Vietnam Customs’ modernization efforts, delivering tremendous benefits to businesses by streamlining procedures and facilitating trade.

The VNACCS/VCIS system has been widely recognized as a breakthrough in reforming customs operations. Even after more than 10 years of implementation, many businesses continue to recall the transformative impact it has had on their operations.

Mr. Than Duc Viet, General Director of May 10 Corporation, one of Vietnam’s leading textile and garment enterprises with annual import-export turnover in the hundreds of millions of USD, highlighted the system’s effectiveness:

"VNACCS/VCIS has fundamentally changed Vietnam Customs’ management practices—from manual processes to electronic systems. This shift has delivered substantial benefits to May 10, particularly in speeding up processing and clearance times. For Green Lane declarations (immediate clearance), a single click on the computer is all it takes for our goods to be cleared. This has played a crucial role in supporting our production and business activities, enhancing competitiveness and strengthening our reputation with partners."

Mr. Viet further emphasized: "Vietnam Customs has taken the lead in the country’s digital transformation journey. This progress reflects the strong political will and determination of the Ministry of Finance and the General Department of Customs. Thanks to VNACCS/VCIS, businesses have transitioned from decades of handling paper-based customs procedures to fully electronic processes."

Mr. Bui Quang Tam, Deputy Director of Hop Thanh Trading, Transport, and Services Co., Ltd., with over 20 years of experience in import-export operations, described VNACCS/VCIS as a “revolution” in facilitating customs procedures.

"The system has significantly reduced labor costs for businesses involved in customs procedures. At the same time, simplified declaration processes and faster clearance times have allowed us to cut operational costs considerably," said Mr. Tam.

Sharing a similar view, Mr. Au Manh Toan, Head of Import-Export at Hyundai Thanh Cong Auto Manufacturing JSC (Ninh Binh), praised the system’s convenience:

"VNACCS/VCIS has greatly benefited businesses by enabling faster, more convenient declarations and clearance processes. The system also provides excellent support for archiving and retrieving customs declarations and product information, which helps companies generate reports and statistics efficiently."

Described as a “revolution” by experts and businesses alike, VNACCS/VCIS has set a new benchmark for efficiency in customs management.

Ms. Nguyen Anh Tuyet, Head of the Customs Subcommittee at VAMA (Vietnam Automobile Manufacturers Association), emphasized:

"VNACCS/VCIS has truly transformed customs declaration and clearance processes by enabling automatic and rapid clearance, especially for Green Channel and Yellow Channel declarations (detailed document inspections). This has helped businesses minimize warehousing and storage costs, which is critical for production and supply chain management."

Ms. Tuyet cited a 2017 World Bank report, which highlighted the measurable impact of VNACCS/VCIS as follow: export clearance times were reduced by 3 hours; import clearance times were cut by 6 hours; clearance costs per shipment dropped by US$19.

The World Bank estimated that in just the first 10 months of 2017, businesses saved approximately US$170 million thanks to VNACCS/VCIS.

The benefits of the VNACCS/VCIS system extend beyond cost savings and faster clearance. Businesses also gain greater transparency, efficiency, and accuracy in customs procedures, enabling them to optimize supply chains and better plan production and delivery schedules.

Contributing to the improvement of business environment and investment attraction

Mrs. Do Thi Thu Thuy, Legal and Customs Director at DHL-VNPT Express, emphasized the pivotal role of the VNACCS/VCIS system in facilitating customs procedures and advancing customs modernization, especially for express delivery companies like DHL.

According to Ms. Thuy, the VNACCS/VCIS system has automated numerous processes, from customs declarations to cargo clearance, significantly reducing processing time and accelerating logistics operations.

"With an automated system, human errors in customs declarations are minimized, reducing risks of penalties or shipment holds," Ms. Thuy explained.

She also noted that VNACCS/VCIS enhances transparency in customs procedures, enabling businesses like DHL-VNPT to efficiently track and manage the status of their shipments.

"The system not only simplifies trade operations but also helps enterprises improve operational efficiency and competitiveness in both domestic and international markets," Ms. Thuy added.

Launched in Vietnam in 2014—the same year VNACCS/VCIS was implemented—the JASAN Textile and Dyeing Co., Ltd. (Vietnam), a Chinese FDI enterprise, highlighted how the system influenced its decision to expand operations in the country.

Mr. Zhou Yunfu, Deputy General Director of JASAN Vietnam, shared:

"Thanks to the fast customs clearance process facilitated by VNACCS/VCIS, we decided to expand our investments in Vietnam. We started with our first factory in Hai Phong in 2014, with an investment of US$68 million. In 2016, we added another plant in Hung Yen, worth US$76 million USD. By 2022, we invested US$22 million in Thanh Hoa, and in 2024, we established another factory in Nam Dinh with a total capital of US$35 million."

The benefits delivered by VNACCS/VCIS have proven invaluable not only to Vietnam Customs but also to the national economy, particularly in supporting import-export activities. However, as technology continues to evolve rapidly and Vietnam’s trade volume has grown exponentially, limitations in the decade-old system are becoming more apparent.

The dramatic increase in trade demands a new IT infrastructure capable of overcoming existing challenges. Such a system must integrate advancements from the Fourth Industrial Revolution to meet the dual goals of facilitating trade and enhancing state management efficiency in customs operations.