Outline of the Project

Project Name

Project for strengthening the effectiveness of Viet Nam Automated Cargo Clearance System (VNACCS)

Country

Vietnam

Date of R/D Signed

25 May 2015

Project site

All areas of Vietnam (mainly in Hanoi)

Term of Cooperation

August 2015 to June 2018

Implementing Organization

General Department of Vietnam Customs (GDVC), Ministry of Finance (MOF)

Project Background

Vietnam has continuously developed since the Doi Moi reform program in 1986 and achieved a comparatively high growth rate in the South-East Asian region (5.84% on average from 2007 to 2014). There lies a factual background that direct foreign investments rapidly expanded after joining the World Trade Organization (WTO) in January 2007. Commensurately, the number of import and export declarations has dramatically increased from 1.16 million cases in 2002 to 4.16 million cases in 2010. Since the workload for customs officers is drastically increased, the General Department of Vietnam Customs (GDVC) is aimed at modernization of customs administration through the application of IT. Furthermore, the reform of customs administrations is required before the launch of ASEAN Economic Community (AEC) in the end of 2015 which are assumed to contribute to the economic growth through the liberalization of the intra-regional trade.

Under such background, GDVC facilitates the realization of national single windows, the modernization of customs administration, such as simplification and harmonization of customs clearance procedures, and the implementation of required legal and administrative reform and its human resource development based on "the Plan of Reforms, Development and Modernization of Customs Sector during the period of 2011 – 2015" (1514/2011/QD-BTC, decision by Ministry of Finance as of 11th June, 2011). In this context, GDVC has recognized the technical advantage on the Japan's Nippon Automated Cargo and Port Consolidated System (NACCS) and its affiliated system, and requested the Grant Aid Assistance for establishing new customs IT system (VNACCS) based on the said systems in September 2011. The Exchange of Note and the Grant Agreement of "Project for E-Customs and National Single Window for Customs Modernization" were signed on 22 March 2012 respectively. The installation of the VNACCS was completed in March 2014 and the system has officially been put into operation from April 2014.

Upon the implementation of the VNACCS, in order to tackle above challenge, GDVC, on behalf of the Government of Vietnam (GOV), has requested the Government of Japan (GOJ) for technical cooperation for capacity building of its staff and the development on reengineering of the legal framework and business process of customs administration for promoting the E-Customs and national single window. This cooperation, entitled "Project for Promoting E-Customs in Vietnam", is being implemented for 3 years since 2012. It has past one year since VNACCS started its operation and 99% of customs declarations have been processed through this system, representing the effectiveness of the technical cooperation so far. Meanwhile, for the more efficient utilization of VNACCS, the improvement of the capacity of operation and maintenance and the modernization of customs administration in line with effective utilization of VNACCS, GOV has requested further technical cooperation on these challenges to the GOJ, resulting in the commencement of this project.

Overall Goal

Trade facilitation is enhanced through further modernization of customs operations.

Project Purpose

Operations of Customs Administrations are improved in line with effective utilization of VNACCS.

Outputs

1	A direction of future course of action for enhancing the utilization of VNACCS is identified.
2	Operation of Post Clearance Audit (PCA) is streamlined and enhanced.
3	The capacity of customs officials on Risk Management (RM) is strengthened.

Activities

Output 1

1-1	Review the utilization status of each function of VNACCS
1-2	Identify underutilized functions of VNACCS and reasons thereof
1-3	Consider ways to increase the use of underutilized functions of VNACCS
1-4	Review requests from the private sector for the improvement of VNACCS
1-5	Review requests from customs for the improvement of VNACCS
1-6	Follow-up and monitor the operation and maintenance practice/contract of VNACCS and advice on the utilization and improvement of VNACCS.
1-7	Draft reports incorporating the issues above.
1-8	Discuss actions to improve VNACCS in Joint Coordinating Committee (JCC).
1-9	Take possible actions to improve VNACCS functions in accordance with the decisions of JCC.

Output 2

2-1	Review the current practice and the entire process of PCA, from data control to conduct inspection/follow-up after the audit.
2-2	Review the use of relevant databases of GDVC during the operation of PCA
2-3	Update relevant circulars/guidelines/manuals for the operation of PCA
2-4	Update the training course, including training materials, for customs officials in PCA
2-5	Conduct training for customs officials in PCA
2-6	Incorporate the developed curricula into the regular training courses of GDVC

Output 3

3-1	Review the current practice of RM and identify the issues to be improved.
3-2	Identify the measures to improve the capacity in the area of RM.
3-3	Update the training course, including training materials, for customs officials in RM.
3-4	Conduct training for customs officials in RM.
3-5	Incorporate the developed curricula into the regular training courses of GDVC.

Input

Japanese side
Dispatch of long-term experts: Chief Advisor, Customs Administration/PCA, Operational Management of the System/Project Coordinator
Dispatch of short-term experts: IT supporting mission (Expert team), PCA, RM
Training in Japan
Cost of project activities

Vietnamese side
Assignment of counterpart officials
Office and basic logistic facilities for experts
Expenses for activities of counterpart, including travel cost
Expenses for electricity, water, etc