Traceability system key to protecting consumers and businesses

Digital technology for modern market

According to experts from the National Barcode and Numbering Centre (NBC) under the Commission for Standards, Metrology and Quality of Viet Nam), current regulations do not mandate the use of identification numbers, barcodes and QR codes on products, resulting in limited implementation by businesses.

Based on the operation of Ha Noi’s electronic traceability information system for agricultural, forestry, fishery and food products, some businesses are reluctant to declare traceability information due to concerns that if traceability information becomes transparent, distribution systems like supermarkets might directly approach production facilities and conduct transactions, bypassing intermediaries.

Many businesses also fear that data disclosure will lead to stricter supervision from state management agencies such as tax authorities and food safety inspection units. Another reason is the incomplete understanding of some management personnel, who believe that product traceability is not truly necessary under current conditions.

Many experts note that recent serious cases of counterfeit production and trade show that societal development has outpaced management thinking; it is time to tighten management through technology to avoid similar risks.

Additionally, the introduction of the Politburo’s Resolution 57 on breakthrough development in science-technology, innovation and national digital transformation has posed the challenge of digital transformation for products and goods.

The Resolution mentions promoting the consumption of products and services in the digital environment, ensuring the digital economy across sectors and fields, with policies encouraging businesses to invest in digital transformation... Implementing digital transformation means giving products a more modern appearance, easier connectivity and, most importantly, easier verification, building trust among consumers.

According to NBC Acting Director Bui Ba Chinh, in implementing Resolution 57, authorities and businesses need to apply technology to digitally transform the supply chain, applying digital technology to all stages from production, storage, transportation to distribution to protect consumer rights, enhance business competitiveness and state management efficiency.

For example, in agricultural production processes following VietGAP standards, manual record-keeping not only increases the risk of errors but is also easily exploited to falsify documents, distorting production realities. This directly affects product transparency and reliability. Conversely, if technology is applied to record electronic production logs in real-time, businesses can manage the entire supply chain transparently and accurately, helping to affirm product quality and origin while promoting healthy, sustainable e-commerce development.

When QR codes are still not standardised, lacking interconnection mechanisms between systems and without close supervision from authorities, the risk of losing consumer trust is real. This is also a loophole for counterfeit and low-quality goods to infiltrate and disrupt the genuine goods market. Therefore, although there are currently no regulations requiring businesses to implement traceability, once deployed, businesses are responsible for fully complying with the provisions of national standards on traceability already issued; any act of providing false or incomplete information may be considered fraudulent behaviour towards consumers.

An important factor in preventing counterfeit goods is early investment in upgrading the technology infrastructure of the National Product Traceability Portal. Currently, this portal still experiences disruptions when access increases and cannot share data between ministries, sectors and localities.

Businesses need to declare information about the supply chain (growing areas, materials, production processes, shipments, etc.) on this system for monitoring by all parties, and to assign responsibility when incidents occur. Once declared on the portal, businesses will be legally responsible and must follow the published information.

Citizens can access the portal to check the origin, process and quality of products circulating nationwide. For example, in the recent case of fake milk production and distribution, the culprits mainly announced the product in one locality and sold it in another, while data was not shared; therefore, if the information had been uploaded to the portal, management authorities in the locality with product consumption would have had information for tracing and management.

Improving legislation and raising awareness among all parties

According to Do Quang Thuan, Marketing Manager of Hanoi Consumer Products Import-Export and Retail Co., Ltd, which runs BRG Mart and Haprofood supermarket chains, goods have passed through three levels of quality control before reaching customers.

First, when working with goods suppliers, supermarkets must survey production sites, production lines and related documents on production standards. When goods arrive at supermarkets, security and inspection systems control quality upon receipt with all import documents and quality control certificates issued by state management agencies. Finally, when goods are on shelves, department staff control whether the product quality is fully displayed and meets requirements, while regularly maintaining goods according to display standards.

Thuan said that supermarkets only have sensory assessment for fresh products, and for the origin of products, supermarkets can only control through certificates and permits for goods circulation as required by state management agencies. “Supermarkets can only assess growing areas when signing contracts, but afterwards, daily quality assessment is done through sensory evaluation. There may be cases where, due to production interruptions, suppliers import vegetables from outside and supermarkets cannot control this. That is fraudulent trading behaviour,” Thuan shared about the reality of quality control in supermarkets.

However, according to technology experts, supermarkets can effectively control the supply chain through traceability using technologies such as identification numbers, barcodes, RFID, AI & big data... Therefore, supermarkets need to supervise product quality on behalf of consumers, provide risk control solutions and take responsibility for their supply chain. The 2023 Consumer Protection Law also stipulates that organisations and individuals trading goods and services are responsible for ensuring the safety and quality of products, goods and services sold and provided to consumers according to the published information.

Meanwhile, many customers do not care, do not know or do not need to learn what QR codes printed on product packaging are for. Most shoppers only use their phones to scan QR codes for payment and not to learn about product information. This indirectly affects consumer rights, especially when goods are not ensured in terms of origin and food safety. Only when consumers understand their rights can they force sellers to be transparent about product quality.

For businesses, using QR traceability codes brings many benefits. Each product with a QR code helps businesses disclose detailed information about the production process, source of materials, production date and quality certifications, thereby building strong trust with customers. Especially for export businesses, applying QR traceability codes not only ensures compliance with international regulations on product quality but also helps enhance brand reputation in the international market.

In the context of Viet Nam’s deep integration into the global economy, business implementation of traceability will help make production processes transparent and create favourable conditions for businesses to enjoy tax incentives as well as enhance international competitiveness.

Lawyer Mai Thi Thao, Deputy Director of Truong Anh Tu Law Company, said that in the context of digital transformation, there is a lot of talk about QR codes, blockchain, supply chain monitoring systems... but a shared data system or linkage mechanisms between departments and sectors have not been created yet and there is a lack of sufficient legal tools to force parties to comply.

It is necessary to improve legislation, especially regulations on traceability, sanctions for importing goods with vague information, and responsibilities of intermediaries; to apply centralised management systems and digitise all data related to goods, so that any consumer can trace product origins and to raise consumer awareness about the right to safety and compensation. When consumers are proactive, businesses will not dare to trade dishonestly.

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