Vietnam

In progress

Introducing a modern customs bond system for conditional release of goods

Supporting Vietnam in strengthening its position as a regional manufacturing powerhouse

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Trade facilitation is a key national priority for Vietnam’s government. Since 2014, changes in legal and regulatory frameworks have significantly simplified customs procedures and increased transparency.  Yet our analysis found that many shipments are held within congested Vietnamese ports simply due to a lengthy release process. In fact, Vietnam’s hold rates for imports and exports remain among the highest in Asia.

What we are doing

We are working with the government and the private sector to implement a modern customs bond system for the conditional release of goods. Vietnam will be the first country in Asia with such a comprehensive system. Traders will be able to purchase bonds to guarantee their payment of duties and taxes as well as regulatory compliance, allowing customs to expedite release of their goods.

Our project involves:

  • supporting the legal and regulatory reforms required to implement the project
  • providing training for customs and other government officials, as well as private sector stakeholders
  • developing a customs bond pricing model in consultation with insurers
  • designing a bond management software module that will interface with Vietnam’s existing eCustoms system

Benefits

The introduction of a customs bond system is a win for the government, the private sector, and the wider Vietnamese population. It will:

  • streamline administrative requirements, thus significantly reducing the need for physical  inspections and documentation checks by border agencies
  • protect Vietnam’s customs revenues and ensure compliance with laws and regulations
  • increase predictability and efficiency for traders, particularly small and medium-sized enterprises, when shipping items to and from Vietnam
  • improve Vietnam’s competitiveness and appeal for foreign direct investment

Monitoring and evaluation

We are monitoring and evaluating the project throughout its duration. Key indicators include:

  • the percentage of Vietnamese traders using customs bonds
  • the number of harmonised system codes covered
  • the reduction in hold time of imports and exports covered by the customs bond system

Private sector support

In Vietnam we are looking for businesses to get involved in a wide range of activities including:

  • advising on software development, customs bond processes, bond valuation, and legal and regulatory reforms
  • project management development and roll-out
  • translations into Vietnamese
  • promoting the project to stakeholders

Project Structure

Phase 1

In progress

Concept development and agreement on solution

Phase 2

In progress

Full implementation 
of bond system

Phase 3

Planned

Piloting

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