Modernizing Customs: From VNACCS to Digital Customs Part 2: The urgent need for a new IT system

Professional activities at the Hon Gai Port Customs Branch, Quang Ninh Customs Department. Photo: Quang Hùng

Outdated Infrastructure – A Bottleneck for Growth

Given the exponential growth in trade, many businesses have noted that VNACCS/VCIS is no longer adequate. Immediate upgrades or a new IT system are essential to address current shortcomings and meet both short-term and long-term development needs.

In 2014, Vietnam’s total trade volume stood at approximately US$ 300 billion. By 2024, this figure is projected to reach US$ 782 billion—nearly a threefold increase. Concurrently, customs declarations and the number of enterprises engaged in import-export activities have doubled, with over 15 million declarations processed by more than 80,000 enterprises annually.

Mr. Bui Quang Tam, Deputy Director of Hop Thanh Trading, Transport, and Services Co., Ltd., emphasized that when VNACCS/VCIS was first implemented in 2014, his company handled around 200 declarations per month. Today, that number has surged to 1,500, reflecting a broader trend across the sector. However, VNACCS/VCIS has not seen corresponding upgrades, resulting in capacity overloads.

“To keep pace with growing demands, significant investments in IT infrastructure are critical. As the saying goes, ‘We cannot drive a car on roads meant for motorbikes,’” Mr. Tam analogized.

Mr. Zhou Yunfu, Deputy General Director of JASAN Textile and Dyeing Co., Ltd. (Vietnam), added that upgrading customs IT systems not only resolves current inefficiencies but also supports growth in import-export activities moving forward.

Outdated amidst the Fourth Industrial Revolution

Upgrading VNACCS/VCIS or developing a new IT system is a crucial step to support businesses while advancing the customs sector’s reform, modernization, and digital transformation goals.

Currently, VNACCS/VCIS serves as the core IT system for Vietnam Customs, primarily handling goods clearance and transit. However, it covers only one segment of the customs management process. To address additional operational and regulatory needs, Vietnam Customs has developed and maintained about 20 supplementary IT systems since 2014, operating in parallel with VNACCS/VCIS.

The lack of integration among these systems hinders data consolidation and functional compatibility. Furthermore, the implementation of Industry 4.0 technologies—such as IoT, AI, and Big Data—remains infeasible. As a result, bottlenecks and system overloads persist, directly affecting clearance times.

Moreover, some key customs operations, such as inspections, audits, and tax refunds, have yet to be fully automated. VNACCS/VCIS, designed in 2014, can no longer accommodate modern business requirements. Its software is a closed system, making upgrades and policy adaptations challenging. The outdated hardware also lacks replacement parts and backup systems, posing a high risk of sudden failures that could disrupt trade flows and economic stability.

An urgent call for investment

Ms. Đo Thi Thu Thuy, Legal & Customs Director at DHL-VNPT Express, acknowledged the significant benefits of VNACCS/VCIS but stressed its current limitations, including technical disruptions, processing delays, and an inability to handle increased declarations.

“With soaring trade volumes, government-level investments are urgently needed to modernize IT systems, ensuring smooth, efficient, and cost-effective clearance processes,” Ms. Thuy suggested.

Mr. Than Đuc Viet, CEO of Garment 10 Corporation, echoed this sentiment, emphasizing that stronger IT investments are essential as trade volumes continue to grow alongside the digital transformation trend.

Ms. Nguyen Anh Tuyet, Head of Customs Subcommittee at VAMA (Vietnam Automobile Manufacturers Association), advocated for allocating a dedicated portion of the national budget to IT upgrades, supporting customs management and faster clearance times to benefit businesses.

Ms. Pham Thi Ngoc Thuy, Director of the Private Sector Development Research Board (Board IV), highlighted the need to optimize IT solutions in customs operations.

“For example, customs data remains fragmented and difficult to monitor. Blockchain technology could be employed to track supply chains end-to-end, preventing document forgery and ensuring transparency throughout the shipment process,” Ms. Thuy proposed.