Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

VCN - In June 2005, the World Customs Organization (WCO) developed and adopted the SAFE Framework of Standards to Secure and Facilitate Global Trade. The SAFE Framework plays a crucial role in encouraging countries to modernize, enhance security, and facilitate trade within global supply chain management and Authorized Economic Operator (AEO) programs. This approach introduces a comprehensive method for cross-border goods management and promotes closer cooperation between Customs, businesses, and stakeholders. The Customs News presents a two-part series on implementing the SAFE Framework in Vietnam.
After 13 years of implementing the AEO program in Vietnam, it has shown many positive aspects, contributing significantly to socio-economic development, attracting foreign investment, and enhancing the country's position. Photo: ST
After 13 years of implementing the AEO program in Vietnam, it has shown many positive aspects, contributing significantly to socio-economic development, attracting foreign investment, and enhancing the country's position. Photo: ST

Proactive participation by Vietnam Customs

Recognizing the significance, importance, and impact of participating in and implementing the SAFE Framework on customs reform and modernization, the General Department of Customs signed a declaration of participation and commitment to implement the SAFE Framework on August 24, 2005.

Since joining the SAFE Framework, Vietnam Customs has been actively involved in international activities related to the framework. This has been demonstrated by Vietnam Customs’ proactive participation in conferences, workshops, and regular meetings, including 29 WCO plenary sessions and working group meetings.

On July 28, 2021, the General Department of Vietnam Customs issued Decision No. 2140/QD-TCHQ outlining a plan to implement aspects of the SAFE Framework for the period 2021–2025. Additionally, the General Department of Customs has directed operational units and encouraged AEO businesses to participate in surveys related to the SAFE Framework conducted by the WCO. These include responding to the survey on smart security devices (2023), completing the WCO’s information collection form on implementing coordination mechanisms with regulatory agencies to ensure environmental compliance under Pillar 3 of the SAFE Framework (enhancing cooperation between customs and other government agencies) in 2023, and participating in surveys of both customs authorities and businesses in 2024.

According to the WCO's 2024 survey report, 2,833 businesses worldwide participated in the online survey, including 76 AEO businesses from Vietnam.

In the implementation plan attached to Decision No. 2140/QD-TCHQ, the General Department of Customs assigned operational units to carry out specific aspects of the SAFE Framework. The SAFE Framework implementation plan outlines key tasks aligned with Vietnam's current circumstances and the customs development strategy through 2030.

SAFE Framework Implementation Results in Vietnam

The SAFE Framework has been incorporated into Vietnam’s customs regulations, including the Customs Law, decrees, circulars, and other guiding documents. Its domestic application follows a roadmap that aligns with Vietnam’s current situation.

For Pillar 1 (Customs-to-Customs), the SAFE Framework has been integrated into the Customs Development Strategy for building, developing, and modernizing the national control system and implementing a smart border model with chain-based control. This includes implementing a smart Customs border management model as recommended by the WCO, ensuring that Customs authorities can monitor and control goods from the input of raw materials through production, processing, and transportation from the exporting to the importing country. Additionally, Customs administrative procedures are reformed towards transparency, simplicity, and uniformity, aligning with WCO standards and recommendations to reduce the time and cost of customs clearance and goods release.

For Pillar 2 (Customs-to-Business), the strategy continues to set objectives for developing AEO (Authorized Economic Operator) regulations: Establishing priority regulations for businesses based on WCO recommendations regarding conditions for application, priority regimes, rights and responsibilities of Customs and businesses, and Customs management of priority enterprises. It also includes creating and promoting mutual recognition agreements on priority enterprises between Vietnam Customs and Customs administrations of key international partners.

For Pillar 3 (Customs-to-Other Government Agencies), relevant aspects have been integrated into the strategy: Implementing the National Single Window, the ASEAN Single Window, and connections with Vietnam's trading partners to centralize administrative processing to the maximum extent possible. This includes connecting, exchanging, and sharing information between Customs and relevant Ministries, agencies under and affiliated with these ministries, and other governmental authorities at border checkpoints, as well as entities involved in the supply chain to meet comprehensive Customs management requirements from start to finish for exported, imported, and transited goods, as well as exit and entry means of transport. Additionally, the strategy emphasizes strengthening cooperation and international integration in Customs in a comprehensive, in-depth, and effective manner, fostering partnerships between Customs and stakeholders to enhance the effectiveness of state management of Customs.

SAFE framework deployment progress

Vietnam Customs has met two of the 29 standards of the SAFE Framework in full, partially implemented 24 standards, and not yet achieved three standards, per SAFE recommendations.

A significant aspect of implementing the SAFE Framework in Vietnam has been the AEO program, which started in 2011. Currently, 76 companies have AEO status, with Vietnam Customs having signed MRAs with ASEAN countries and negotiating MRAs with Hong Kong (China) and South Korea. Thirteen years into the AEO program in Vietnam, it has positively contributed to social and economic development, attracting foreign investment, enhancing Vietnam’s international standing, and fostering high interest from the business community. This advancement allows Vietnam to negotiate and establish substantive MRAs with other countries, extending preferential treatment to Vietnamese companies both domestically and in countries with signed MRAs.

By Thu Hoai – Minh Hoang (Customs Reform and Modernization Department)/Ha Thanh

Related News

Best covers of Vietnam Customs songs: 15 winners revealed

Best covers of Vietnam Customs songs: 15 winners revealed

VCN - The Vietnam Customs Youth Union has just officially revealed the 15 victorious pieces in the "Cover Songs about Vietnam Customs 2024" contest. These 15 prizes are divided into various categories, totaling approximately 100 million Vietnamese Dong in prize money
Vietnam Customs kicks off campaign for innovation, breakthrough, and growth

Vietnam Customs kicks off campaign for innovation, breakthrough, and growth

VCN - To concentrate on leadership, guidance, and vigorous implementation of goals, targets, and tasks towards the objectives of Digital Customs and Green Customs by 2025, the General Department of Vietnam Customs has launched a competition campaign with the theme: "Innovation - Breakthrough – Development”
Vietnam Customs overhauls customs valuation management

Vietnam Customs overhauls customs valuation management

VCN - The General Department of Vietnam Customs has recently issued a decision to promulgate an action plan for the implementation of the Customs Valuation Management Reform Project up to 2030 (hereinafter referred to as the Project), which has been approved under Decision No. 167/QĐ-TCHQ dated February 10, 2023, by the Director General of Vietnam Customs.
Challenges facing customs revenue collection in 2025

Challenges facing customs revenue collection in 2025

VCN - Revenue from import-export activities is expected to face significant challenges in 2025, necessitating coordinated and decisive measures to ensure accurate and sufficient tax collection, preventing revenue losses, and achieving assigned targets.
Comment

Latest News

Brandnew e-commerce law to address policy gaps

Brandnew e-commerce law to address policy gaps

The proposed law seeks to address gaps in existing regulations and keep pace with technological advancements and evolving business models.
From January 1, 2025: 13 product codes increase export tax to 20%

From January 1, 2025: 13 product codes increase export tax to 20%

VCN - According to the Export Tariff (XK) issued with Decree 26/2023/ND-CP, from January 1, 2025, there will be 13 commodity codes with an export tax rate of 20%.
Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

VCN – According to the Export Tariff issued with Decree 26/2023/ND-CP, the tax rates of 13 commodity codes will increase to 20% from January 1, 2025.
Proposal to reduce 30% of land rent in 2024

Proposal to reduce 30% of land rent in 2024

VCN - The Ministry of Finance has finalized a draft Government Decree outlining the reduction of land rent for 2024. The draft is currently under review by the Ministry of Justice before being submitted to the Government for approval.

More News

Resolve problems related to tax procedures and policies for businesses

Resolve problems related to tax procedures and policies for businesses

VCN - Immediately after the end of the Dialogue Conference between the Ministry of Finance and enterprises on tax and customs policies and administrative procedures in 2024, the General Department of Customs proactively removed obstacles related to tax procedures and policies for the business community.
New regulations on procurement, exploitation, and leasing of public assets

New regulations on procurement, exploitation, and leasing of public assets

VCN - Decree No. 114/2024/ND-CP, which amends and supplements certain articles of Decree No. 151/2017/ND-CP detailing the implementation of the Law on Management and Use of Public Assets, introduces significant changes. These include updates on authority, methods of asset exploitation in agencies and units, plans for leasing, joint ventures, and partnerships in public service units, as well as centralized procurement procedures.
Actively listening to the voice of the business community

Actively listening to the voice of the business community

VCN - Recognizing the Customs-business relationship as a long-term partnership, the Customs authority has organized hundreds of dialogues with businesses since the beginning of the year. These efforts aim to promptly address challenges, resolve obstacles, and facilitate import-export activities. Such meetings offer an opportunity for the Customs authority and the business community to exchange, share insights, and find solutions to enhance operational quality and efficiency.
Step up negotiations on customs commitments within the FTA framework

Step up negotiations on customs commitments within the FTA framework

VCN - Promoting negotiations on customs commitments within the framework of free trade agreements (FTAs) plays an important role in facilitating import and export activities. These commitments not only help optimize the customs clearance process but also minimize costs and risks for businesses, opening up great opportunities for Vietnamese goods to access deeper into the international market.
Proposal to amend regulations on goods circulation

Proposal to amend regulations on goods circulation

VCN - To perfect the policy on customs procedures, inspection and supervision, enterprises and associations have contributed many ideas from practical activities. Thereby, the Drafting Committee (General Department of Customs) has more perspectives to build policies to meet the goal of facilitating trade and ensuring state management of customs.
Review of VAT exemptions for imported machinery and equipment

Review of VAT exemptions for imported machinery and equipment

VCN - The General Department of Vietnam Customs has directed provincial and municipal customs departments to review, inspect, and address issues related to the implementation of VAT exemption policies for specialized machinery and equipment used in agricultural production.
Customs tightens oversight on e-commerce imports

Customs tightens oversight on e-commerce imports

VCN - The General Department of Vietnam Customs has issued new directives to enhance the management of imported goods transacted through e-commerce platforms, addressing ambiguities and ensuring consistent enforcement across provincial and municipal customs departments.
Bringing practical experience into customs management policy

Bringing practical experience into customs management policy

VCN - At the workshop to collect opinions from Southern Customs units on the draft Decree amending and supplementing Decree 08/2015/ND-CP dated January 21, 2015 of the Government; the draft Circular amending and supplementing Circular 38/2015/TT-BTC dated March 25, 2015 and Circular 39/2018/TT-BTC dated April 20, 2018 of the Minister of Finance, organized by the General Department of Customs last weekend, many Southern Customs units contributed specific contents from practical operations in the locality.
Businesses anticipate new policies on customs procedures and supervision

Businesses anticipate new policies on customs procedures and supervision

VCN - With this year’s import-export turnover estimated at nearly US$800 billion and forecasting to surpass this milestone next year, the business community holds high expectations for upcoming amendments and supplements to customs management, procedures, and supervision policies. These changes are expected not only to facilitate trade but also to enhance state management efficiency and support economic development.
Read More

Your care

The system has not recorded your reading habits.

Please Login/Register so that the system can provide articles according to your reading needs.

Latest Most read
Brandnew e-commerce law to address policy gaps

Brandnew e-commerce law to address policy gaps

The proposed law seeks to address gaps in existing regulations and keep pace with technological advancements and evolving business models.
From January 1, 2025: 13 product codes increase export tax to 20%

From January 1, 2025: 13 product codes increase export tax to 20%

VCN - According to the Export Tariff (XK) issued with Decree 26/2023/ND-CP, from January 1, 2025, there will be 13 commodity codes with an export tax rate of 20%.
Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

VCN - 13 commodity codes with export tax rates increased to 20% from January 2025 include:
Proposal to reduce 30% of land rent in 2024

Proposal to reduce 30% of land rent in 2024

The Ministry of Finance has finalized a draft Government Decree outlining the reduction of land rent for 2024. The draft is currently under review by the Ministry of Justice before being submitted to the Government for approval.
Resolve problems related to tax procedures and policies for businesses

Resolve problems related to tax procedures and policies for businesses

VCN - Immediately after the end of the Dialogue Conference between the Ministry of Finance and enterprises on tax and customs policies and administrative procedures in 2024, the General Department of Customs proactively removed obstacles related to tax pr
Mobile Version