On March 31, USAID announced that it will be supporting Vietnam’s Customs Agency in conducting a cost-benefit assessment of developing a national customs database. According to USAID, the proposed database would collect all customs information into a single system, align with an integrated transaction control system, and provide seamless information sharing between provincial customs departments and national government agencies. USAID has been working with Vietnam in addressing the country’s burdensome customs procedures. In 2018, USAID allocated USD 21 million to a trade facilitation program meant to coordinate trade procedures among Vietnamese agencies and at least five provinces.
Less advanced customs tools, red tape, abrupt rule changes, lengthy processes, difficulty in finding information, and corruption have caused problems for exporters and importers in Vietnam. A February 2023 survey by the Vietnam Chamber of Commerce and Industry (VCCI) shows that 59% of the companies it surveyed reported issues with “special inspections” (typically customs checks focused on product quality). Reducing unregulated fees and the digitalization of customs procedures, therefore, remain essential for effective trade in the country. As such, a national customs database will improve risk management and expedite customs processes, ultimately attracting more foreign investments in Vietnam. U.S. imports from Vietnam have risen sharply amid the decline in economic relations between the U.S. and China. In 2020, Vietnam was the United States’ 6th largest supplier of goods imported. The U.S. goods trade deficit with Vietnam increased by 25.3% from 2019 to 2020.
