Vietnam will make great strides in attracting investment from European businesses

Mr. Nguyen Hai Minh

Could you tell us about the trade facilitation reform and trade facilitation that the Customs sector has implemented?

In the past 2 years, with difficulties caused by the impact of the pandemic and political and trade fluctuations in many countries, businesses have faced many difficulties, especially those related to trade and logistics.

These are global issues, not just in Vietnam. However, in Vietnam, businesses, especially European businesses, still have a rather optimistic view, when the survey index on business confidence of European business leaders in Vietnam in the first months of the year is still positive, although there is a slight decrease in the second quarter compared to the first quarter, but due to the influence of external factors, internal factors are still stable.

On the other hand, in terms of trade, European businesses are benefiting a lot when the Free Trade Agreement between Vietnam and the European Union (EVFTA) comes into effect, helping to increase trade turnover in the past 2 years. However, the problem that businesses still face is that administrative procedures are still one of the barriers related to benefiting from the EVFTA and other FTAs. In trade facilitation procedures, customs-related procedures are an important "link" so businesses are very interested.

The good news is that the Customs sector has made great strides in reform, modernization, application of information technology, and digital transformation from the management and implementation of customs procedures to the attitude of customs officials to work with businesses, not only in procedures related to import and export processes but especially in specialized inspection.

These reforms have contributed to reducing compliance time and costs for businesses, especially from the strong implementation of the national single window, the ASEAN single window that integrates procedures on the National Public Service Portal, and the application of information technology in general.

In particular, in the context of the pandemic with unprecedented developments and directions, the Customs authorities have also given very timely solutions, and quick responses for businesses to improve convenience in business activities, import and export of goods.

What are the remaining obstacles for businesses to be more favorable in trade, sir?

Digital transformation can be considered as the "guideline" for the most effective trade facilitation reforms, especially in the customs sector. However, the Customs sector needs to continue to innovate, although this issue has been done very well by the Customs sector, it still needs to be further improved.

In addition, the current specialized inspection mechanism is still overlapping, leading to extra time and expenses for enterprises.

To make trade and investment activities more effective, what recommendations do you have for the authorities?

According to European businesses in Vietnam, the immediate priority is to soon implement a specialized inspection mechanism in the direction of simplifying and focusing on one focal point for businesses, as required in the Project "Reforming the model of quality inspection and food safety inspection for imported goods” in Decision 38/QD-TTg of the Prime Minister. Procedures need to be digitized and integrated as much as possible on the National Public Service Portal. In addition, customs procedures also need to continue to be improved.

In May, the Prime Minister signed a decision approving the Customs Development Strategy to 2030. The strategy sets out seven specific goals for Customs development, in which businesses are very hopeful. The goal is to create a fair and transparent import and export environment and complete smart customs.

With the current reform spirit, I am sure that Vietnam will make great strides in attracting investment, especially from European investors when the EVFTA comes into effect and the EU - Vietnam Investment Protection Agreement (EVIPA) is about to be ratified.

Thank you!