Vietnam, Korea Customs sign AEO MRA

	More benefits for Vietnam’s AEO program by MRAs
	ASEAN Customs discusses AEO programmes to foster ASEAN AEO MRA

Director General Nguyen Van Tho and departments’ representatives of the GDVC, take souvenir photos with the representatives of the KCS. Photo: H.N

This is the result of the implementation of commitments in the Protocol amending the Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Republic of Korea on cooperation and mutual assistance in the customs field. Accordingly, the GDVC and the KCS have negotiated the AEO MRA.

After the AEO MRA is signed and applied, the parties will soon complete the domestic procedures to serve as a legal basis for implementing the AEO MRA program.

According to Vietnam Customs, the signing of the AEO MRA is a trend and brings many benefits to enterprises and helps customs control more smoothly. The signing of the AEO MRA aims to bring long-term benefits to enterprises.

Accordingly, in addition to enjoying preferential policies under the provisions of Vietnamese law, Vietnamese AEOs also enjoy the priorities under the AEO MRA with the signatory country.

This brings great benefits and contributes to promoting economic development and international integration, both enhancing the position of Vietnam Customs and attracting many domestic enterprises to participate in the AEO program, improving the legal compliance of the business community.

Additionally, the AEO MRA helps effectively implement the provisions of the Vietnam-Korea Free Trade Agreement (VKFTA) and the World Trade Organization (WTO) Trade Facilitation Agreement.

According to Vietnam Customs, Korea is currently a leading important partner of Vietnam in many fields such as politics, investment, trade, industry, energy and tourism.

Meanwhile, Korea also considers Vietnam a key partner in its southern policy. Within the framework of trade cooperation between the two countries, the signing of the AEO MRA between the two Customs administrations shows that the political trust between the two countries has always been maintained and increasingly strengthened.

The agreement contributes to expanding the field of cooperation, forming a long-term, substantive and in-depth cooperation mechanism in the fields of economics and trade, and deepening the comprehensive partnership between the two countries.

Director General Nguyen Van Tho signs the AEO MRA. Photo: H.Nu

According to statistics from the KCS, as of August 2024, there have 935 AEOs in the South Korea. They not only operate in the field of import and export but also in the fields of transportation, logistics, and port operations.

Korean AEOs contribute about 50% of Korea's export turnover and 70% of import turnover. Meanwhile, by August 2024, there are 76 AEOs in Vietnam with import and export turnover accounting for over 30% of Vietnam's total import and export turnover.

Vietnamese AEOs are mainly manufactures and exporters of products to the United States, Japan, China, European member states, and ASEAN.

Through the survey of AEOs on selecting the partner to negotiate mutual recognition, the selected partners are mainly the United States (35%), Japan (33%), and other partners such as Korea, ASEAN, and China.

In the period from 2023 to the first quarter of 2024, there are about 60 Vietnamese AEOs engaging in import-export activities related to the Korean market with a total import-export turnover of about US$35 billion. Of which, 14 AEOs with Korean FDI capital have a turnover of US$30 billion, accounting for 85% of the total import-export turnover related to the Korean market.

Vietnam and Kore Customs administrations assess that the AEO MRA may bring more benefits to Korean AEOs exporting to the Vietnamese market and Vietnamese AEOs with Korean FDI capital in the short term,

However, in the long term, motivated by the goal of continuing to develop Vietnam's AEO program, the common interests will be balanced.