Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

After 13 years of implementing the AEO program in Vietnam, it has shown many positive aspects, contributing significantly to socio-economic development, attracting foreign investment, and enhancing the country's position. Photo: ST

Proactive participation by Vietnam Customs

Recognizing the significance, importance, and impact of participating in and implementing the SAFE Framework on customs reform and modernization, the General Department of Customs signed a declaration of participation and commitment to implement the SAFE Framework on August 24, 2005.

Since joining the SAFE Framework, Vietnam Customs has been actively involved in international activities related to the framework. This has been demonstrated by Vietnam Customs’ proactive participation in conferences, workshops, and regular meetings, including 29 WCO plenary sessions and working group meetings.

On July 28, 2021, the General Department of Vietnam Customs issued Decision No. 2140/QD-TCHQ outlining a plan to implement aspects of the SAFE Framework for the period 2021–2025. Additionally, the General Department of Customs has directed operational units and encouraged AEO businesses to participate in surveys related to the SAFE Framework conducted by the WCO. These include responding to the survey on smart security devices (2023), completing the WCO’s information collection form on implementing coordination mechanisms with regulatory agencies to ensure environmental compliance under Pillar 3 of the SAFE Framework (enhancing cooperation between customs and other government agencies) in 2023, and participating in surveys of both customs authorities and businesses in 2024.

According to the WCO's 2024 survey report, 2,833 businesses worldwide participated in the online survey, including 76 AEO businesses from Vietnam.

In the implementation plan attached to Decision No. 2140/QD-TCHQ, the General Department of Customs assigned operational units to carry out specific aspects of the SAFE Framework. The SAFE Framework implementation plan outlines key tasks aligned with Vietnam's current circumstances and the customs development strategy through 2030.

SAFE Framework Implementation Results in Vietnam

The SAFE Framework has been incorporated into Vietnam’s customs regulations, including the Customs Law, decrees, circulars, and other guiding documents. Its domestic application follows a roadmap that aligns with Vietnam’s current situation.

For Pillar 1 (Customs-to-Customs), the SAFE Framework has been integrated into the Customs Development Strategy for building, developing, and modernizing the national control system and implementing a smart border model with chain-based control. This includes implementing a smart Customs border management model as recommended by the WCO, ensuring that Customs authorities can monitor and control goods from the input of raw materials through production, processing, and transportation from the exporting to the importing country. Additionally, Customs administrative procedures are reformed towards transparency, simplicity, and uniformity, aligning with WCO standards and recommendations to reduce the time and cost of customs clearance and goods release.

For Pillar 2 (Customs-to-Business), the strategy continues to set objectives for developing AEO (Authorized Economic Operator) regulations: Establishing priority regulations for businesses based on WCO recommendations regarding conditions for application, priority regimes, rights and responsibilities of Customs and businesses, and Customs management of priority enterprises. It also includes creating and promoting mutual recognition agreements on priority enterprises between Vietnam Customs and Customs administrations of key international partners.

For Pillar 3 (Customs-to-Other Government Agencies), relevant aspects have been integrated into the strategy: Implementing the National Single Window, the ASEAN Single Window, and connections with Vietnam's trading partners to centralize administrative processing to the maximum extent possible. This includes connecting, exchanging, and sharing information between Customs and relevant Ministries, agencies under and affiliated with these ministries, and other governmental authorities at border checkpoints, as well as entities involved in the supply chain to meet comprehensive Customs management requirements from start to finish for exported, imported, and transited goods, as well as exit and entry means of transport. Additionally, the strategy emphasizes strengthening cooperation and international integration in Customs in a comprehensive, in-depth, and effective manner, fostering partnerships between Customs and stakeholders to enhance the effectiveness of state management of Customs.

SAFE framework deployment progress

Vietnam Customs has met two of the 29 standards of the SAFE Framework in full, partially implemented 24 standards, and not yet achieved three standards, per SAFE recommendations.

A significant aspect of implementing the SAFE Framework in Vietnam has been the AEO program, which started in 2011. Currently, 76 companies have AEO status, with Vietnam Customs having signed MRAs with ASEAN countries and negotiating MRAs with Hong Kong (China) and South Korea. Thirteen years into the AEO program in Vietnam, it has positively contributed to social and economic development, attracting foreign investment, enhancing Vietnam’s international standing, and fostering high interest from the business community. This advancement allows Vietnam to negotiate and establish substantive MRAs with other countries, extending preferential treatment to Vietnamese companies both domestically and in countries with signed MRAs.