DISCLAIMER This document was produced for review by the United States Agency for International Development. It was prepared by Nathan Associates Inc. for the USAID Trade Facilitation Program, contract number 72044018C00001.

Cai Mep International Terminal Customs Clearance Gate

QUARTERLY REPORT

TRADE FACILITATION PROGRAM

April – June 2021

DISCLAIMER This document was produced for review by the United States Agency for International Development. It was prepared by Nathan Associates Inc. for the USAID Trade Facilitation Program, contract number 72044018C00001.

USAID TRADE FACILITATION PROGRAM FY 2021 Third Quarter Report Activity Start Date and End Date: May 29, 2018 – May 28, 2023

Name of Prime Implementing Partner: Nathan Associates Inc.

Contract Number: 72044018C00001

Name of Subcontractors/Sub awardees: Baker McKenzie (Vietnam) Ltd.

Bixal Solutions Inc.

Pioneer Communications & Marketing Co. Ltd.

The Asia Foundation

Major Counterpart Organization: General Department of Vietnam Customs

Geographic Coverage: Vietnam

Reporting Period: Q3 FY2021: April to June 2021

USAID.GOV TRADE FACILITATION PROGRAM QUARTERLY REPORT APR 2021 –JUN 2021

CONTENTS

ACRONYMS 4

EXECUTIVE SUMMARY 6 Quarterly Highlights 6

1. PROJECT OVERVIEW 3 1.1. Project Description 3 1.2. Quarter 3 Achievements 3

2. WORK PLAN IMPLEMENTATION PROGRESS 4 2.1. Component 1 4 2.2. Component 2 7 2.3. Component 3 9 2.4. Component 4 11 2.5. Cross-cutting Issues 14

3. COLLABORATION AND COORDINATION 16 3.1. Other USAID Projects 16 3.2. Other Donor and Government of Vietnam Activities 16

4. CHALLENGES AND PROPOSED SOLUTIONS 16 4.1. Partners’ Reluctance or Lack of Capability for Online activities 16 4.2. Provincial Authorities Are Pre-occupied 17 4.3. Vaccinations Are Not Yet Widespread 17

5. PROGRESS REPORT ON INDICATORS 17 Purpose: Cross-Border Trade Expedited and Vietnam’s Ability To Implement WTO TFA

Commitments Enabled 17 IR1: Policies and Procedures Across GVN Units Harmonized and Simplified 17 IR 2 & 3: National and Provincial coordination and implementation strengthened 18 IR 4: Partnerships between customs and the private sector enhanced 18

ANNEX A.1 MEL TABLES AND FIGURES

ANNEX A.2.1 FY2021 KEY CONTEXT INDICATORS

ANNEX A.2.2 FY2021 KEY PERFORMANCE INDICATORS

ANNEX B PRESS CLIPPINGS QUARTER 3 FY2021

USAID.GOV TRADE FACILITATION PROGRAM QUARTERLY REPORT APR 2021 –JUN 2021

ACRONYMS

AEO Authorized Economic Operator

AMELP Activity Monitoring, Evaluation, and Learning Plan

ASEAN Association of Southeast Asian Nations

ASW ASEAN Single Window

C2B Customs-to-business

C/O Certificate of Origin

CBP U.S. Customs and Border Protection

CCS Customs Control and Supervision Department

CIEM Central Institute for Economic Management

CLA Collaborating, Learning, and Adapting

CRMB Customs Reform and Modernization Board

DDG Deputy Director General

DOIT Department of Industry and Trade

eLMS e-Learning Management System

EPE Export Processing Enterprises

FTA Free Trade Agreement

FY Fiscal Year

GDVC General Department of Vietnam Customs

GSP Generalized System of Preferences

GVN Government of Vietnam

GVC Global Value Chain

HCMC Ho Chi Minh City

HS Harmonized System

ICT Information and Communication Technology

LinkSME USAID Linkages for Small and Medium Enterprises Project

LMD Leadership and Management Development

MARD Ministry of Agriculture and Rural Development

MEL Monitoring Evaluation and Learning

MOF Ministry of Finance

MOIT Ministry of Industry and Trade

MOT Ministry of Transport

NSW National Single Window

NTFC National Trade Facilitation Committee

PCA Post-Clearance Audit

PMU Project Management Unit

PSTF Private Sector Trade Facilitation

PTFC Provincial Trade Facilitation Committees

RM Risk Management

ROO Rules of Origin

USAID.GOV TRADE FACILITATION PROGRAM QUARTERLY REPORT APR 2021 –JUN 2021

SI Specialized Inspections

SILR Specialized Inspections Legal Review

SME Small and Medium Enterprises

TF Trade Facilitation

TFA WTO Trade Facilitation Agreement

TRAV Trade Remedies Authority

U.S. United States

USAID United States Agency for International Development

VCCI Vietnam Chamber of Commerce and Industry

VCS Vietnam Customs School

WCO World Customs Organization

WTO World Trade Organization

USAID.GOV TRADE FACILITATION PROGRAM QUARTERLY REPORT APR 2021 –JUN 2021

EXECUTIVE SUMMARY

In the third quarter (Q3) of fiscal year 2021 (FY 2021), the USAID Trade Facilitation Program (“the Program”) continued to progress towards its goal of expediting cross-border trade. Notably, the Program widened its engagement beyond its primary counterpart, the General Department of Vietnam Customs (GDVC) to other Government of Vietnam (GVN) units including line ministries and local government agencies. The Program also made significant progress in specialized inspections reform and on activities in the provinces while tackling the recurrent challenges posed by the ongoing COVID-19 pandemic.

QUARTERLY HIGHLIGHTS Highlights from April to June 2021 include increased advocacy and support to Vietnam to implement its commitments under the World Trade Organization (WTO) Trade Facilitation Agreement (TFA) streamlining specialized inspections procedures across GVN units, setting up of Provincial Trade Facilitation Committees (PTFCs), and deepening engagement with the private sector.

COMPONENT 1: HARMONIZING POLICIES AND PROCEDURES ACROSS GVN UNITS

Enabling Vietnam to Implement its WTO TFA Commitments. On April 7, 2021, the Program and GDVC held a consultation workshop to present and gather feedback on the findings of the Program’s situational assessment of Vietnam’s implementation of the WTO TFA. The situational assessment undertaken by the Program is the first to be carried out since Vietnam’s prior self-assessment and subsequent notifications to the WTO on implementation of TFA provisions in November 2018. The assessment concluded that Vietnam was on the right track towards full compliance with the provisions of the TFA as 74 percent of measures appear to be in full compliance and only 13 measures still require further reform. (See Activity 1.4 for more details).

Reforming Specialized Inspections (SI). This quarter, the Program achieved two milestones in reforming specialized inspections. To support GDVC in drafting a decree that will regulate specialized inspections, the Program completed a regulatory impact assessment (RIA) to estimate the cost-savings for businesses once the decree is implemented. Based on the Program and GDVC’s estimates, implementation of this decree may result in up to $66.8 million in time and costs savings for businesses. This bolsters the Ministry of

Finance (MOF) and GDVC’s advocacy for the decree despite concerns from other agencies. The MOF considers development of the draft decree a key task, which will not only make Customs the focal point for certain specialized inspections but will also create a breakthrough in changing state management of trade.

In addition, the Program completed its first collaboration with the Central Institute of Economic Management (CIEM) under the Ministry of Planning and Investment and the Ministry of Agriculture and Rural Development (MARD). The Program supported CIEM to assess specialized inspections reform as mandated by GVN Resolutions 19 and 02. The final assessment report, Specialized Inspections Reform over the Last Six Years (2015-2020): Outcomes, issues, and orientation of reform 2021-2025, will be submitted to the GVN in Q4. The report will serve as both an evaluation of previous reform efforts and a roadmap to address remaining challenges in streamlining specialized inspections. With MARD, the Program held the two working groups to revise Circular 15/2018/TT-BNNPTNT on the Harmonized System (HS) codes for the list of goods under MARD management. (See Activity 1.3 for more details).

Photo 1: Ms. Nguyen Thi Viet Nga, Deputy Director of the GDVC International Cooperation Department (ICD), at the workshop on WTO TFA implementation on April 7 in Hanoi.

Photo 2: Participant discussion on the sidelines of workshop on the SI Decree on April 1 in HCMC.

Photo 3: GDVC Deputy Director General (DDG) Mai Xuan Thanh at the SI workshop on March 30 in Hanoi

USAID.GOV TRADE FACILITATION PROGRAM QUARTERLY REPORT APR 2021 –JUN 2021

COMPONENT 2: STRENGTHENING NATIONAL AND PROVINCIAL COORDINATION

Facilitating E-Commerce and Digital Trade. As businesses and consumers trade more goods online, e-commerce is expected to lead to an increase in cross-border trade. There is currently no national regulation on customs procedures for goods transacted through e-commerce, which can lead to delays and bottlenecks in the clearance of goods. On June 25, the Program and GDVC held a kick-off meeting to discuss the Program’s support for the development of a decree to address this regulatory gap. This builds upon Program efforts in 2020, which led to issuance of Prime Minister Decision 431/QD-TTg dated March 27, 2020, approving the “Scheme for Management of Cross-Border E-Commerce”. (See Activity 2.1 for more details).

COMPONENT 3: STRENGTHENING PROVINCIAL LEVEL IMPLEMENTATION AND INTER-PROVINCIAL COORDINATION.

In Quang Tri province, the Program, local customs and GDVC organized a training workshop on Coordinated Border Management (CBM) to facilitate trade at Lao Bao Border Gate. Senior officials of the Quang Tri Department of Industry and Trade (DOIT), Plant Quarantine Sub-department of region 3, Trade Zone Administration Board, and Lao Bao and La Lay customs stations participated in the

event. The training marks the first time the Program supported customs directly at ports of entry. The Lao Bao border gate is one of the crossings along “Greater Mekong East-West Economic Corridor” from Myanmar to Vietnam via Thailand and Laos. Easing procedures at Lao Bao can increase economic activity along the corridor and trade with neighboring countries. (See Activity 3.6 for more details).

COMPONENT 4: ENHANCING PARTNERSHIPS BETWEEN CUSTOMS AND THE PRIVATE SECTOR

Strengthening Customs-Business partnerships. In June, the Program, VCCI, and GDVC completed the 2020 Business Satisfaction Report on the Implementation of Import-Export Administrative Procedures (Customs Satisfaction Survey/ “CSS”) marking the Program’s first time to support the report. The CSS 2020 is the first to include reports on the performance of six provinces and specialized management of other ministries. Previous iterations of the survey did not disaggregate results for provincial customs’ performance nor measure business satisfaction with procedures of other ministries. The CSS represents the collective voice of traders on positive changes while pinpointing constraints and challenges in implementing customs procedures. Through the survey, businesses can make recommendations for legal revisions and improved implementation to further facilitate trade. (See Activity 4.4 for more details).

Improving Private Sector Engagement at the Local Level. On May 31, Da Nang became the latest province to establish a local trade facilitation mechanism by setting up the “Trade Facilitation Steering Committee of Da Nang City”. On April 7, the Quang Tri DOIT hosted the first technical meeting of the “Provincial Steering Committee on Trade Facilitation” (or the Quang Tri PTFC) to identify local trade facilitation issues and discuss potential assistance from the Program. Notably. Both PTFCs as well as the previously established Dong Nai PTFC include representatives from the

private sector. Quang Tri is the first of the Program’s six selected provinces to hold a PTFC meeting and now serves as a model for other provinces in Vietnam. The establishment of the PTFC enables the Program to work directly with local authorities and the local business community on specific issues and will help in improving coordination with GVN units at the central level. (See Activity 4.8 for more details).

Photo 5: First Technical Meeting of Quang Tri PTFC on April 7, 2021, in Dong Ha city.

Map 1: Greater Mekong East-West Economic Corridor from Mawlamyine, Myanmar (Burma) to Da Nang, Vietnam.

Photo 4: Mockups of the English and Vietnamese versions of the CSS2020 report. Full reports in both languages are available online.

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1. PROJECT OVERVIEW

1.1. PROJECT DESCRIPTION The USAID Trade Facilitation Program (“the Program”) is a five-year project (2018 to 2023) that aims to support the adoption and implementation of a risk-based approach to customs and technical (“specialized”) inspection institutions in Vietnam. Attaining this objective will facilitate the implementation of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA). The Government of Vietnam (GVN) counterpart for the Trade Facilitation Program is the General Department of Vietnam Customs (GDVC), which also acts as the focal point of the National Trade Facilitation Committee (NTFC). The Program supports national and provincial stakeholders in promoting the benefits to be gained by applying a risk management approach to specialized inspections, which impede trade and cause delays in border clearance. The Program aims to strengthen the role and capacity of the NTFC to effectively implement and coordinate trade facilitation policies and procedures, and to promote more proactive public-private dialogue.

USAID Trade Facilitation Program activities are organized into four components:

In addition to technical assistance at the central level, the Program will secure provincial buy-in by localizing technical assistance in six provinces identified and selected in close cooperation with GDVC, i.e., Hanoi, Hai Phong, Da Nang, Quang Tri, Ho Chi Minh City, and Dong Nai. In implementing activities, the Program will look to engage the private sector, the ultimate beneficiaries of trade facilitation, as advocates to champion reforms. Achieving the Program’s objectives will help improve the trade environment for Vietnamese and U.S. companies and help local small and medium enterprises (SMEs) further integrate into global value chains.

1.2. QUARTER 3 ACHIEVEMENTS A summary of the Program’s results based on its performance indicators can be found below:

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2. WORK PLAN IMPLEMENTATION PROGRESS This section gives an overview of ongoing and completed activities in Q3 of FY2021 and provides a summary of expected results by the end of Y3, results to date (if any), and priorities for next quarter.

2.1. COMPONENT 1 Activities in Component 1 aim to ensure the facilitation of legal and regulatory initiatives that are of the highest priority for the GVN or hold the best potential for contributing to the effective implementation of the WTO TFA, with particular attention to Vietnam’s Category B and C commitments. This includes supporting the implementation of the National Single Window (NSW) and Association of Southeast Asian Nations (ASEAN) Single Window, assisting to reform specialized in section, and implementing the WTO TFA by strengthening the role of the NTFC

ACTIVITY 1.1 – NATIONAL SINGLE WINDOW (NSW) AND ASEAN SINGLE WINDOW

The Program and GDVC agreed to delay further work on the draft decree for information sharing between agencies through the NSW to the latter half of 2021.

ACTIVITY 1.1BIS – SUPPORT THE DEVELOPMENT AND IMPLEMENTATION OF THE SCHEME ON REDESIGNING THE BLUEPRINT FOR AN OVERALL CUSTOMS IT SYSTEM

Automation of customs procedures and the increased use of ICT is critical to modern customs administration and trade facilitation. Automated customs systems facilitate trade through the standardization of forms, documents and data and simplification and digitalization of customs clearance procedures. Businesses may benefit from reduced clearance times and fewer physical inspections as integrated ICT systems enable the more effective use of risk management. Additionally, modern ICT systems help strengthen customs operational efficiency in collecting duties and identifying and combatting trade fraud.

Cooperation between the Program and GDVC on activity 1.1bis changed over the course of the quarter. GDVC completed the requirements for business functions and operations for the new ICT system. In Q3, the Program continued to complete its review and validation of the business functions and operational requirements against best practices. The new ICT system is one of GDVC’s long-term projects and is expected to be fully in place by 2027 after a five-year Build, Operate, Transfer (BOT) agreement with an ICT provider. The Program’s current assistance to GDVC will lay the groundwork for the new ICT system’s initial operations, which is set for 2023.

Expected Results ∗ Reform and expand the NSW to improve transparency within the private sector, and to enhance cooperation as well as integration of processes and procedures related to customs clearance of imports and exports, including specialized inspections.

∗ Conduct feasibility study for an automated system to measure time and assess effectiveness of NSW procedure implementation.

∗ Develop and submit for approval a decree on connection and sharing of information between state agencies and with other stakeholders through the NSW.

∗ Strengthen the implementation of the NSW, including implementing the master scheme on developing and expanding the technology and information system for purpose of implementing the National single window and ASEAN single window.

∗ Enhance implementation of the NSW, including the overall scheme for developing and setting up an IT system.

Y3 Results to Date

∗ Situational assessment and survey of current situation with IT systems of other government ministries for implementation of NSW.

∗ Sharing international experience with recommendations for the way forward. ∗ Inputs to draft decree on connection and information sharing for NSW. ∗ Report on international experience on legal framework.

Priorities for Q4 ∗ Additional input and impact assessment of the draft decree. ∗ Consultation workshops on the draft decree.

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ACTIVITY 1.3 – SPECIALIZED INSPECTION OF IMPORTS AND EXPORTS (QUARTERLY HIGHLIGHT)

In Y2, the Program supported GDVC to develop a new scheme to manage specialized inspections (“SI scheme”). The Prime Minister approved the SI Scheme on January 12, 2021 through Decision 38/QD-TTg. Throughout Y3, the Program supported GDVC with SI reform through development of the regulatory decree (“SI decree”) for the management mechanism, methodology, processes, and procedures to implement the SI scheme.

The Program completed several sub-activities in Q3 to support development of the SI Decree making significant progress towards simplifying specialized inspections. By the end of June, the Program and GDVC finalized the regulatory impact assessment for administrative procedures to calculate compliance costs under the draft SI decree. The Program also completed its analysis of the decree’s legal compatibility with existing laws while GDVC submitted the draft decree to the Ministry of Justice (MOJ) for appraisal. The appraisal process will continue into Q4. Also in June, the Program and CIEM completed two thematic reports to assess previous SI reforms, objectives, and areas for further reform. This follows extensive key informant interviews with public and private stakeholders in various provinces across Vietnam, completed in April. The Program also continued to work with the Ministry of Industry and Trade (MOIT) on the situational assessment of specialized inspections and management for goods under MOIT authority.

Expected Results Development and implementation of the Scheme on redesigning the blueprint for an overall Customs ICT system

Priorities for Q4 ∗ Completion of the review of the 45 business functions. ∗ Business process reengineering and developing business process models and notations. ∗ Support to GDVC in verifying the vendor’s system design is in line with expectations. ∗ Mobilization of international experts to Vietnam to hold in-person meetings with

representatives of the GDVC working groups revising the functional and operational requirements to develop the new Customs ICT system.

Expected Results Simplification of imports-exports specialized inspections procedures in implementing Resolutions 19 and 02 of the Government and the other instructions to facilitate trade for businesses

Y3 Results to Date

∗ Four Specialized Inspections Legal Reviews (SILR) to develop reports and proposals to GDVC and other line ministries on amendments to SI legal documents, list of goods for HS codes, and contributions to the report for the NTFC.

∗ SI Scheme: o Three consultative workshops to collect feedback on the SI decree. o A series of working groups to support the drafting team for the new decree, and

comments on various drafts of the SI decree. o Impact assessment for administrative procedures of the SI decree.

∗ Support CIEM to review implementation of Resolution 19 and 02. o Surveys and interviews in five provinces o Two thematic reports on assessment of Resolutions 19 and 02 and develop new

Resolution 02 of the Government on business environment and national competitiveness (focus on SI reform)

∗ SI reforms under the management of MARD: o Two working group discussions to review, develop and appraise a Circular replacing

Circular 15/2018/TT-BNNPTNT o Comments and recommendations to the Draft Circular.

Priorities for Q4 ∗ Publication of the CIEM report on the implementation of Resolutions 19 and 02 and the impact on specialized inspections procedures and on trading across borders.

∗ SI reforms under the management of the MOIT: Three thematic reports on the current situation, international experience, and solutions for specialized management, inspection, and energy efficiency under MOIT management.

∗ With the Ministry of Science and technology (MOST): Assessment of the implementation of the Law on Product and Goods Quality on State Quality Inspection and Law on Standards and Technical Regulations on Conformity Certification and Announcement for Imports-Exports.

∗ Further revisions of the draft SI decree and the regulatory impact assessment.

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WHY THIS MATTERS: The reform of specialized inspections is a key objective of the Trade Facilitation Program. The collaborations with GDVC, CIEM and MOIT demonstrate the GVN’s commitment for SI reform and the impact of U.S. support. The new SI scheme, once implemented, should help streamline the quality and food safety inspection procedures for businesses thereby facilitating international and cross-border trade. The SI scheme is expected to result in reduced time for the clearance and release of goods while still ensuring effectiveness of state management controls for free, fair, and reciprocal trade.

ACTIVITY 1.4 – ADMINISTRATION OF WTO TFA IMPLEMENTATION INCLUDING DETAILED ASSESSMENT OF THE IMPLEMENTATION OF TFA COMMITMENTS (QUARTERLY HIGHLIGHT)

In Q3, the Program and GDVC continued with follow-up actions after the situational assessment of Vietnam’s implementation of WTO TFA commitments completed in Y2. The assessment is the first to be carried out since Vietnam’s prior self-assessment and subsequent notifications to the WTO on the status of the country’s implementation of TFA provisions in November 2018. Consequently, activities in Q3 focused on gathering feedback from other GVN agencies and identifying the remaining areas for reform.

On April 7, the Program and GDVC held the first of two planned consultative workshops on the assessment and the proposed way forward/roadmap to attain full compliance with the TFA’s provisions. Due to restrictions related to COVID-19, the second workshop was cancelled. In lieu of an online event, GDVC sent out letters to other agencies and businesses to request written comments.

WHY THIS MATTERS: The findings and recommendations of the assessment not only give an overall picture of Vietnam’s progress in implementing the TFA measures, but also identify gaps and areas for further improvement. If adopted by the GVN, the recommendations and roadmap can have long-term impacts on facilitating trade in the country by serving as a basis for the GVN to determine the next steps towards promoting TFA measures, undertaking additional reforms, and moving towards full compliance with the agreement. Full implementation of Vietnam’s commitments on reforms and trade facilitation will expedite the flow of goods and improve the country’s performance in cross border trade, which in turn, will benefit both Vietnamese and U.S. businesses.

ACTIVITY 1.5 – SUPPORT AND INCREASE THE ROLE AND EFFECTIVENESS OF THE NTFC INCLUDING STANDING OFFICE AND ANY WORKING GROUPS CREATED

Under Article 23.2 of the WTO TFA, WTO member countries must establish a NTFC to act as a “mechanism to facilitate both domestic coordination and implementation of the provisions” of the WTO TFA and serve as the link between WTO member countries and the International Trade Facilitation Committee in Geneva. In Vietnam, the National Steering Committee on ASEAN Single Window, National Single Window, and Trade Facilitation, also known as “Committee 1899” fulfills the functions of the NTFC. Although Committee 1899 is chaired by the Deputy Prime Minister alongside the Minister of Finance and

Expected Results Enhanced the implementation of TFA commitments Y3 Results to Date

∗ Updated review report and suggested solutions for implementation. ∗ A list of items to be further implemented/finalized to implement the TFA. ∗ One consultative workshop and circulation of the assessment report.

Priorities for Q4 ∗ Development of legal instruments, delivery of training, and raising awareness on the WTO TFA and remaining reforms

∗ Collect further feedback from relevant stakeholders

WTO TFA ASSESSMENT FINDINGS

Vietnam is on the right track towards full compliance with the provisions of the WTO TFA.

74-percent of measures appear to be in full compliance.

Only 13 measures still require further reform.

IMPACT ASSESSMENT FINDINGS

Implementation of the new SI decree may generate annual cost savings of $66.8 million for businesses

$10.2 million in compliance costs-savings by simplifying 13 administrative procedures

$56.6 million in savings for business by cutting other costs and time to complete procedures.

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Minister of Industry and Trade as deputy chairs, its structure, composition, lack of frequent meetings, and broad mandate limit its efficacy in directing and coordinating reforms to simplify administrative procedures such as specialized management and inspections.

On June 25, the Program met with VCCI to identify actions and strategies to strengthen the role of NTFC. In Q4, the Program and VCCI will explore areas to cooperate to enhance the private sector’s engagement in the NTFC. The discussions with VCCI follow completion of the Program and GDVC’s situational assessment on Committee 1899, evaluating its role and effectiveness, and comparing Vietnam’s model with that of other countries, including the United States.

ACTIVITY 1.6 – IMPROVE CUSTOMS LEGAL FRAMEWORK (SIMPLIFY CUSTOMS PROCEDURES)

On April 20 and 23, the Program and GDVC held two events to raise awareness of Decree 18/2021, which is one of the legal instruments that highly impact the private sector. Decree No. 18/2021/ND-CP is closely related to Decree 08/2015 and revises Decree 134 of 2016 on guidelines for the Law on Export and Import Duties. The new Decree 18 will help improve the legal basis for effective implementation of the Law on Export and Import Duties. The new decree also tackles various concerns previously raised by businesses, especially on duty and tax exemptions and state management of Export Processing Enterprises (EPEs). Decree 18/2021 was issued on March 15 and took effect on April 15, 2021. With less than a month before its entry into force, the workshops supported by the Program assisted the business community to better prepare for the decree’s imminent implementation. The Program’s continuous technical assistance to the MOF and GDVC throughout the development, issuance and dissemination of Decree 18 will contribute to facilitating import and export activities thereby enhancing Vietnam’s national competitiveness.

2.2. COMPONENT 2

Component 2 aims to facilitate the clearance of goods by ensuring that GVN policies and procedures are implemented more effectively through strengthened coordination. Policies formulated by GVN agencies are not uniformly implemented at the provincial level. However, a degree of independence on how to implement policies can create opportunities for provinces while at the same time can influence national policies and procedures. The goal is for customs formalities to be simplified and harmonized in line with international standards and for procedures to be made more transparent.

ACTIVITY 2.1 – E-COMMERCE FOR IMPORTED AND EXPORTED GOODS (QUARTERLY HIGHLIGHT)

The value of Vietnam’s e-commerce market more than doubled from US$5 billion in 2015 to $11.8 billion in 2020. As more businesses and consumers purchase or trade goods online, e-commerce is expected to facilitate an increase in cross-border trade. However, there are currently no regulations on customs procedures for goods transacted through e-commerce, which can lead to delays and bottlenecks in the

Expected Results Support Vietnam in implementing measures in the TFA, reforming the Trade Facilitation mechanism, and raising awareness.

Y3 Results to Date

Situational assessment report, suggestions and solutions, status, or progress reports of TFA implementation.

Priorities for Q4 Activities in follow-up with NTFC review and assessment in year 2: ∗ Support the dissemination of the report to the relevant stakeholders, collecting feedback ∗ Deepening the role of the private sector supporting VCCI in having a leading role

Expected Results A Decree revising and supplementing Decree 08/2015/ND-CP and Decree 59/2018/ND-CP on customs procedures

Y3 Results to Date

∗ Consultative workshops to get feedback and comments on the draft Decree revising and supplementing Decree 08/2015/ND-CP

∗ Two research papers on (a) customs procedures, Export Processing Enterprises (EPEs), AEOs and (b) SI reform under GDVC Deputy Director General (DDG) Mai Xuan Thanh to support for the revision of Decree 08.

∗ Support the GDVC/MOF to disseminate Decree 18/2021/ND-CP Priorities for Q4 ∗ Further support to GDVC to revise the legal text of Decree 08

∗ Organization of an online consultative meeting to collect feedback on the draft of Decree 08

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clearance of goods. In Y2, the Program supported GDVC to develop a new scheme to manage cross-border e-commerce, which led to the Prime Minister issuing Decision 431/QD-TTg dated March 27, 2020 approving the “Scheme for Management of cross-border e-commerce”. This quarter, the Program is building upon this previous work with assistance to GDVC in drafting the decree that will regulate customs procedures for imported and exported goods transacted via e-commerce. On June 25, the Program and GDVC held a kick-off meeting to discuss the Program’s support, which will go through to the end of Q4.

WHY THIS MATTERS: E-commerce transactions have dramatically increased in the past few years, but especially during the COVID-19 pandemic. In first quarter of 2021, there were 21 million low value customs declarations through express delivery service, 92-percent of which were goods transacted via e-commerce. GVN agencies need to have policies and procedures in place to manage the increasing volume of e-commerce transactions. Customs will need to implement the most appropriate solutions, based on digitalization and risk management, to control and manage cross-border e-commerce transactions to achieve the dual objectives of effective safeguarding while facilitating trade. The issuance of the decree will not only enhance transparency in the Customs legal framework but will also reduce the time, cost, and procedures for customs clearance for goods trade via e-commerce.

ACTIVITY 2.12 – PREVENTION OF ORIGIN FRAUD AND ILLEGAL TRANSSHIPMENT

Origin fraud and illegal transshipment are pressing concerns for both Vietnam and the United States. Although there are no statistics on the economic losses due to origin fraud and illegal transshipment in Vietnam, compliant businesses suffer the negative consequences such as tariffs, stricter inspections, and any trade remedies or countervailing measures imposed against the country. In Q3, the Program began collaborating with the MOIT Trade Remedies Authority (TRA) to undertake a feasibility study of the proposal to introduce a voluntary registration scheme for exporters of high-risk goods. As a first step, the Program and TRA began collecting information on origin certification from relevant government agencies and from traders using an online questionnaire. The Program also supported the TRA with research into best practices and challenges with a focus on mature Exporter Registration programs. The Program and TRA are also working on identification of product groups with a high risk of origin fraud, origin certification under Generalized System of Preferences (GSP), and the viewpoint of the business community on the current state of origin certification. This work will continue into next quarter.

Expected Results ∗ Develop legal documents and customs operational measures and techniques to support importation and exportation of goods via e-commerce.

∗ Efficient cross-border e-commerce activities in customs operations Priorities for Q4 ∗ Provide information and guidance on customs’ management of e-commerce from several of

Vietnam’s key trading partners including China, Japan, Singapore, the United States, and the European Union.

∗ Support drafting the e-commerce Decree

Expected Results Improved information flow of C/O data and enhanced effectiveness of C/O governance Priorities for Q4 ∗ Feasibility study for anti-circumvention, anti-evasion of trade remedy measures: study for a

voluntary export registration program for exports with high-risk of origin fraud and anti-dumping/countervailing duty evasion.

THE RISKS OF ORIGIN FRAUD AND ILLEGAL TRANSSHIPMENT

Vietnam has entered into a considerable number of Free Trade Agreements (FTAs), 13 effective trade agreements with three others under negotiation. Under these FTAs trade agreements, Vietnam and other member countries have cut down the tariff rates for most line items to facilitate the trade flows. The rules of origin play a key role in differentiating between the goods eligible for preferential tariff goods subject to much higher tariffs. The substantial differences in preferential tariffs and non-preferential tariffs, aggravated by trade tensions between the U.S. and China, have made Vietnam a high-risk country for origin fraud and illegal transshipments to evade tariffs and circumvent the trade remedies. GDVC has identified 19 product groups with a high risk of origin fraud. Industries particularly susceptible to illegal transshipment include textiles, seafood, agriculture, honey, steel, iron, aluminum, and timber. For example, in 2020, GDVC reported to have seized 1.8 million tons of aluminum worth more than US$4.billion imported from China and falsely labelled as made in Vietnam, before it was due to be shipped to the United States. This was an attempt to avoid punitive tariffs on China’s aluminum exports to the United States (374 percent compared with only 15 percent levied on goods qualifying as Vietnamese origin).

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2.3. COMPONENT 3 Under Component 3, the Program provides capacity building activities and training for Customs officials in various positions at central and provincial levels starting with the targeted provinces to meet the requirements of modern customs and coordinated border management. This component aims to ensure that professionalism and integrity at the provincial level is reinforced, and a risk management approach is used by all agencies and line ministries responsible for SI.

ACTIVITY 3.1 – CAPACITY ASSESSMENT AND TRAINING ON RISK MANAGEMENT

In 2020, the Program supported the issuance of MOF Circular No. 81/2019/TT-BTC on Risk Management, which substantially modified the legal framework on risk management in customs operations. Activity 3.1 focuses on training Customs officials on the criteria developed in Circular 81 and in line with WCO standards, which elects risk management as a tool to facilitate cross-border trade. In Q3, the Program began preparations to deliver three five-day training sessions on risk management for local customs in northern, central, and southern Vietnam. Due to the pandemic, the Program had to delay the training to Q4.

Expected Results ∗ Improved capacity of Customs officials to identify targeted goods. ∗ Improved advanced skills for Customs officials working in risk management. ∗ Improved the capacity of analysis and targeting on business enterprises. ∗ Enhanced capacity of Risk Management Customs officials and their risk control work across

different types of vehicles, passengers, and cargo Priorities for Q4 ∗ Delivery of training on risk management and targeting cargo.

ACTIVITY 3.3 – TRAINING CAPACITY OF VIETNAM CUSTOMS SCHOOL (VCS)

Training capacity for VCS plays a critical role in meeting the strategic target of GDVC to become a modern Customs administration. From April to June 2021, the Program continued supporting VCS in development of the e-learning management system (eLMS) by enhancing the user experience and user interface (UX-UI) and building out additional functionality on the platform. By the end of June, the UX-UI of 50 percent of all screens/pages on the eLMs were enhanced. The Program also began collaborating with the GDVC CRMB to upgrade the eLMs examination feature and planned a training of trainers, which was postponed due to COVID-19. In addition, the Program completed the procurement procedures to hire a marketing and communications firm to assist VCS in promoting its online offerings to the private sector.

Expected Results Complete the eLMS (in technical terms), develop several online lectures (in terms of content), and operate online courses smoothly and synchronously.

Y3 Results to Date

∗ Completion of the eLMS in technical terms. ∗ Capacity building (training of trainers) to VCS to self-design online training courses. ∗ Set up and develop an online training management system. ∗ Updated user interface and user experience of the eLMS portal (50-percent completed)

Priorities for Q4 ∗ Development of ten (10) e-learning courses. ∗ Completion of organization of examination features as required by GDVC. ∗ Promotion of VCS e-learning courses to broader audience ∗ Training (at advanced level) for key VCS lecturers to design online courses independently. ∗ Build an additional module to record capacity profiles of Customs officials.

ACTIVITY 3.4 – TRAINING AND CAPACITY BUILDING FOR CUSTOMS OFFICIALS

Training activities for Customs officials at the national, and especially the provincial level, were hindered by GVN restrictions on public gatherings and events to control the spread of COVID-19. In Q3, the Program selected a local institution to deliver leadership and management development (LMD) skills training for Customs officials in the position of department director and higher. In cooperation with the GDVC

Photo 6: Screenshots of the previous and improved user interface of the eLMS portal.

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Personnel and Organization Department (HRD), the LMD training will be delivered on a cost-share basis and prioritized for Q4.

Expected Results ∗ A competency and skill-based training program for officials in leadership positions. ∗ Support for human resources development of the entire customs

Priorities for Q4 ∗ Delivery of the LMD training course if the GVN does not apply restrictions on in-person training courses

∗ Identify the objectives of human resources development based on the draft strategic plan on customs development for 2020-2025, with a vision to 2030

ACTIVITY 3.6 – PROGRAM ACTIVITIES IN SELECTED PROVINCES (Quarterly Highlight)

The Program achieved two significant milestones in Quang Tri province in Q3, the first technical meeting of the PTFC (see Activity 4.8), and training at the border gate with Laos on coordinated border management. In HCMC, the Program continued to refine its report A Better Port: Improving Trade Logistics in and Around Cat Lai Terminal in Ho Chi Minh City while working with local customs on the development of an application to improve coordination and information sharing among customs, other agencies, and businesses. The Program also began planning the training on combatting origin fraud and illegal transshipment, as requested by HCMC customs. Elsewhere, the Program prepared for three training courses on the WTO TFA for local customs in the six selected provinces. Unfortunately, these training courses are postponed to Q4 due GVN restrictions to control the COVID-19 pandemic and GVN agencies’ reluctance for online training.

On April 16, with support from the Program, the Quang Tri customs department in coordination with GDVC organized the Training Workshop on Coordinated Border Management (CBM) to Facilitate Trade at Lao Bao Border Gate. Quang Tri Customs chaired the event with participation from senior officials of the Quang Tri Department of Industry and Trade (DOIT), Region 3 Plant Quarantine Sub-department, Trade Zone Administration Board and officials of Lao Bao and La Lay Customs Stations. Trainers included representatives from the GDVC Customs Control and Supervision (CCS) and International Cooperation departments (ICD), Border Guard Agency, Lao Bao Customs station, and the Program. The training focused on the current situation of cross-border and land-border management of people, goods, and vehicles in Quang Tri; border management coordination in accordance with the Vietnam-Laos Trade Agreement; customs transit procedures applied in the Association of Southeast Asian Nations (ASEAN) under Decree 46/2020/ NDCP, and coordination activities between border agencies.

In HCMC, the Program continued working with HCMC customs to assess the security of local customs’ IT applications to facilitate trade in the province. The Program also solicited written feedback from the Vietnam Maritime Administration (VINAMARINE) and Inland Waterway Authority on the Program’s study improve trade logistics at Cat Lai port. The workshop to discuss the Cat Lai study is postponed to Q4.

WHY THIS MATTERS: Harmonized and uniform implementation of trade-related procedures in all provinces is critical to reducing the time and cost to trade. Technical assistance to local customs and other agencies can assess and eventually address gaps in the implementation of reforms. The workshop at Lao Bao border gate is also a model for other activities in other provinces. The collaboration between GDVC, the Program, local customs and other border agencies marks the first in a series of similar events planned for other border crossings while the assistance to HCMC customs will improve the trade environment in Vietnam’s most important economic center.

Map 2: Map of local customs departments. The Program’s selected provinces are in red.

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2.4. COMPONENT 4

This component aims to enhance the engagement between the private and public sectors and to increase private sector involvement in policy and procedural reforms through more regular consultation and by using innovative opportunities to increase dialogue. This requires developing customs to business (C2B) partnerships; expanding the Authorized Economic Operators (AEO) program to more businesses; improving the compliance of businesses with customs procedures; encouraging the private sector to give constructive feedback on customs management activities, and proposing policy and procedural reforms, and contributing to trade facilitation and improving customs management efficiency.

ACTIVITY 4.1 – DEVELOP THE AEO PROGRAM AND VOLUNTARY COMPLIANCE TRADERS PROGRAM

Following the Program’s extensive support to GDVC in Q2, the Program did not have any tasks under activity 4.1 in Q3. The Program has not yet determined Q4 priorities as the voluntary compliance program is still pending approval.

Expected Results ∗ AEO Program o Expansion of Vietnam’s AEO program o Creation of more benefits for AEO companies o AEO program in line with international guidelines and standards

∗ Voluntary Compliance Program for Traders o A new voluntary compliance program to further facilitate trade for business. o Improved traders' compliance levels and aim at businesses’ voluntary compliance

Y3 Results to Date

∗ Research paper on international AEO programs – situational analysis, best practices, and gap analysis.

∗ Assessment of AEO program in Vietnam. ∗ Report on mutual recognition agreements international AEO programs and Vietnam state of

preparedness for prospective partnerships. ∗ Consultative workshop on the draft Voluntary Compliance Program for Traders. ∗ Input to the Voluntary Compliance Program for Traders.

Priorities for Q4 ∗ Supporting Voluntary Compliance Program - approval and launch

ACTIVITY 4.3 – CUSTOMS-BUSINESS CONSULTATION

The quarterly meeting of the Program’s private sector trade facilitation consultative group was postponed to Q4 due to COVID-19 restrictions and participant businesses’ unavailability. The Program explored holding the meeting virtually and will make plans to do so in Q4.

Expected Results Improve the effectiveness of customs to business dialogue/consultation and partnership Y3 Results to Date

Periodic quarterly consultations organized to develop partnership with European and US businesses in Vietnam

Priorities for Q4 Organization of the third meeting of the private sector trade facilitation consultative group and organize the first meeting of the private sector consultative group in HCMC

Expected Results ∗ Raising awareness of the TFA and prevention of origin fraud and illegal transhipment at the selected provinces.

∗ Improve skills and build capacity for Customs officials on the clearance of goods and to minimize time and costs and improve border management and SI procedures.

∗ Assess performance, bottlenecks/constraints, dwell time and propose strategies and actions towards mitigating congestion through new or expanded facilities as well as IT-related solutions and private sector investment.

Y3 Results to Date

∗ One training course on CBM in Quang Tri. ∗ A Better Port: Improving Trade Logistics in and Around Cat Lai Terminal in Ho Chi Minh City

Priorities for Q4 ∗ Two Hybrid workshops on WTO TFA awareness and prevention of origin fraud, respectively for representatives of the local customs and for the private sector.

∗ Completion of the security assessment of HCMC Customs’ IT application

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ACTIVITY 4.4 – BUSINESS SATISFACTION SURVEY ON ADMINISTRATIVE PROCEDURES OF CUSTOMS (CUSTOMS SATISFACTON SURVEY) (Quarterly Highlight)

This quarter, the Program in collaboration with VCCI and the GDVC Customs Reform and Modernization Board completed the 2020 Business Satisfaction Report on the Implementation of Import-Export Administrative Procedures (CSS 2020). Based on the results, 74.35 percent of survey respondents were satisfied with Customs performance overall, which is a 9.47 percentage point increase from 2018 survey. The report highlights an increase in many of the areas surveyed such as access to information (from 7.43 to 8.22 out of 10 points), ease in customs clearance procedures (6.33 to 7.44 points), ease in post clearance procedures (5.69 to 6.2 points), discipline and professionalism and services offered (from 6.67 to 6.87 points).

This is the first year the Program has supported the CSS from development of the survey, implementation, and input into the report. The 2020 Report is the first edition to feature in-depth assessments of the performance of six prominent customs departments (i.e., Bac Ninh, Binh Duong, Dong Nai, Hai Phong, Hanoi, and Ho Chi Minh City). GDVC and VCCI aim to include all provincial customs departments in future editions to encourage improvements and reforms through competition, akin to the approach of the highly successful USAID-supported Provincial Competitiveness Index.

The 2020 Report is also the first edition to include a special focus on assessing the status of the implementation of administrative procedures on specialized management and inspection. Businesses reported on specific issues in specialized inspections and management under the MOIT, MARD, MOST, Ministry of Transport (MOT), Ministry of Health (MOH) and Ministry of Information and Communications (MICs). The Program planned to organize a launch event to publicly announce the results, but this was postponed to Q4.

WHY THIS MATTERS: Vietnam’s dynamic private sector accounts for more than 42 percent of GDP and is now the largest contributor to the economy. With over 800,000 registered businesses, 98 percent of which are small and medium enterprises (SMEs), platforms that enhance dialogue between the government and private sector are becoming increasingly important. The CSS 2020 is one of these platforms and provides insights into the benefits from Customs’ significant progress in reforming trade-related procedures in the past six years. Although additional reforms are still needed, Customs continues to demonstrate its leading role in facilitating trade and the GVN’s willingness to cooperate with the business community and partners such as the United States in doing so.

Expected Results ∗ Identification of businesses' level of satisfaction with administrative procedures of customs and other agencies.

∗ Identification of constraints and drawbacks in need of improvement to increase satisfaction of businesses with administrative procedures of customs agencies for maximum trade facilitation.

Y3 Results to Date ∗ Completion of the Business (Customs) Satisfaction Survey and CSS 2020 report. Priorities for Q4 ∗ Public launch of the CSS 2020 report.

∗ Finalization of the assessment of the six prominent customs departments (i.e., Bac Ninh, Binh Duong, Dong Nai, Hai Phong, Hanoi, and Ho Chi Minh City) and organize report launching events.

∗ Start of the National Single Window satisfaction survey. Finalization of questionnaires and collection of data and relevant information.

Image 7: Percentage of CSS respondents reporting difficulties in specialized management and inspection, by line ministry and by issue. (Source: CSS 2020)

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ACTIVITY 4.6 – DEVELOP CUSTOMS DEVELOPMENT STRATEGY (CDS) FOR 2021-2030

The GDVC CRMB has not yet finalized the CDS 2021-2030. A workshop with GDVC leaders to present the findings, conclusions, and recommendations from the Diagnostic Study conducted by the Program in Q1 and Q2 will be held next quarter. The Program continues to provide an experienced and well-respected local customs expert to assist GDVC to develop the strategy.

ACTIVITY 4.7 – DISSEMINATE THE TARIFF COMMITMENTS IN FTAS

The Program continued to support The MOF ICD develop and publish a handbook on the roadmap for tariff reduction and FTA implementation guidelines. The handbook is needed and will be extremely useful to businesses as they navigate and maximize the benefits from various FTAs adopted by Vietnam.

Expected Results Increased awareness of Vietnam's import tariff policies in international economic integration, thereby reducing customs clearance time, and encouraging businesses to use preferential C/O to benefit from FTAs.

Priorities for Q4 Completion of the bilingual Handbook on tariff reduction roadmap and FTA implementation guidelines for sectors

ACTIVITY 4.8 – TRADE FACILITATION RELATED COMMUNICATION, COORDINATION AND PRIVATE SECTOR ENGAGEMENT AT LOCAL LEVEL (Quarterly highlight)

On May 31, Da Nang became the latest province to create a PTFC by setting up the Trade Facilitation Steering Committee of Da Nang City. The Da Nang PTFC will be led by the deputy chairman of the province’s People’s Committee alongside the director of the Da Nang Department of Industry and Trade (DOIT). The Program and Da Nang PTFC are still in discussions on the assistance the province needs to better facilitate trade.

On April 7, the Quang Tri DOIT as the Standing Vice Chairman of the newly-setup “Provincial Steering Committee on Trade Facilitation” hosted the inaugural technical meeting to identify local trade-facilitation issues and discuss potential technical assistance from the Program. The Quang Tri PTFC proposed that the province receive the Program’s support on a wide range of topics including AEO programs, specialized inspections on cosmetic products; Intellectual Property Rights (IPR) infringement, and training on the WTO TFA with a focus on C/O fraud and illegal transshipment.

The PTFC also proposed that the Program undertake activities specifically focused on the private sector such as a survey on business satisfaction on trade-related administrative procedures and development of a mobile application or hotline for businesses to access for issues with trade-related procedures. In addition, the PTFC expressed interest in receiving support related to training for

Expected Results Formulation of the Customs Development Strategy for 2021-2030 and align Customs Operations with international standards for a modern custom.

Y3 Results to Date

∗ Diagnostic study reports on recommendations for the CDS 2021-2030 ∗ Situational assessment of the gaps between Vietnam customs and world customs. ∗ Advice to drafting committee.

Priorities for Q4 ∗ Support the finalization of the CDS 2021-2030. o Consultations with relevant agencies and organizations o Launch workshop o Monitoring & evaluation plan for action plans and implementation of the strategy

∗ Development and launch of the 5-year action plan.

Source: Vietnam National Statistics Office, 2021

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officials on cross-border e-commerce, development of a cross- border free trade zone between Vietnam and Laos.

In Dong Nai, the Sub-Committee of Technical Assistance for Trade Facilitation established in Q2 sent the Program requests for support on four of its activities. These include assistance to 1) regular meetings; 2) raising awareness about the Sub-Committee and its mandate; 3) training on the WTO TFA and ROO in FTAs; and 4) an annual event to review the PTFC’s operations and begin planning for the following year.

Due to travel restrictions, the Program was not able to visit the provinces starting May 2021. Work with the established PTFCs will continue to focus on planning and coordination until Q4.

WHY THIS MATTERS: Quang Tri is the first of the Program’s six selected provinces to hold a meeting of a PTFC and now serves as a model for other provinces in Vietnam. Although several of the proposals are well outside the Program’s scope, the ideas show the proactive efforts of Quang Tri authorities and the value they place on facilitating trade in the province. The establishment of the PTFC enables the Program to work directly with local authorities on specific issues and technical assistance needs and will help in improving coordination with GVN units at the central level. Coordination between the central and local level is crucial in effectively implementing trade facilitation reforms to reduce the time and cost to trade.

2.5. CROSS-CUTTING ISSUES

COLLABORATION, LEARNING, AND ADAPTING (CLA)

In May 2021, USAID and the Program revised the Monitoring, Evaluation, and Learning (MEL) plan to include 17 indicators. Following this revision, the Program conducted an internal learning event to review the Program’s results framework against the new set of indicators, achievements in the first half of the year, and remaining tasks for Q3 and Q4.

GENDER INTEGRATION

This quarter, the Program continue d to work VCS to prepare for a one-day training on gender and social inclusion for Customs officials. A local gender specialist will work with the Program’s international gender advisor to finalize the training needs assessment, methodology and content. The training is planned for Q4, when Customs officials are expected return to the VCS campus for their annual training program.

STRATEGIC COMMUNICATIONS

This quarter, the Program focused on the development of new communications tools and formats to convey results in a deeper and wider manner to target audiences despite the reduction in public events due to COVID-19. These include the newly formatted and content-rich newsletters, refreshed weekly reports, development of videos as well as strengthening Program’s live-streaming capabilities to enable remote participation at events. The Program’s communications team also took the leading role in coordinating and finalizing key reports and ensuring the technical quality of communications related products. The Program also focused on proactive media engagement and responses. Specifically, the Program published the updated quarterly newsletter and developed a communications strategy for release of the A Better Port: Improving Trade Logistics in and Around Cat Lai Terminal in Ho Chi Minh City and the concept note for a trade symposium. The Program also started two communications-related procurements including for communications material development/marketing advisory service to support VCS’ e-learning, and to support media engagement

Expected Results ∗ Establishment of provincial trade facilitation mechanism. ∗ Increased awareness of the TFA at local level

Y3 Results to Date

∗ Establishment of the Dong Nai PTFC ∗ Establishment and first technical meeting of the Quang Tri PTFC ∗ Introduction of the PTFC concept to provincial authorities in six selected provinces

Priorities for Q4 ∗ Assistance to the established PTFCs for work plan/activity development ∗ Coordination with the GDVC PMU on provincial activities with the PTFC ∗ Training on TFA and raising awareness of PTFCs

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service for the Program. The Program also released an in-depth article (online and printed) about specialized inspections in special issue of the Vietnam Financial Times.

In Q4, the Program will prioritize proactivity media engagement, live streaming/virtual management capability and supporting communications-related activities with VCS. The Program will prioritize events on Cat Lai and the trade symposium scheduled to be held in September and November 2021, respectively. Further, the Program will continue to nurture sound relationship with the media to boost the coverage on trade facilitation and gather additional evidence of the impact of its technical assistance activities to develop success stories.

TRADE CAPACITY BUILDING

Apart from the Program’s regular training and capacity building efforts, the Program also assisted in coordinating a virtual training session delivered by U.S. Customs and Border Protection (CBP) and U.S. Department of Agriculture (USDA) officials. On April 24, CBP and USDA trained officials from the GDVC CCS, CRMB and ICD and provincial customs departments (Hanoi, Hai Phong, Lang Son, Da Nang, Quang Tri, Dong Nai, HCMC, and Ha Nam). Presenters from US CBP and USDA provided comprehensive

information and shared specific experiences around phytosanitary issues management, import permit requirements, commodity preclearance program, and especially the Vietnam preclearance program on six commodities: dragon fruit, rambutan, lychee, longan, mango, and star apple as well as cargo inspection processes. At the end of the training, officials from USAID Vietnam and the USDA Animal and Plant Health Inspection Service (APHIS) attaché in Hanoi further elaborated on the pre-clearance program in Vietnam, which includes over 600 producers, 31 packing houses, one irradiation facility, 59 Shippers, and 72 U.S. Consignees. GDVC expressed interest in holding future in-person knowledge sharing sessions with USAID and USDA-APHIS.

FINANCING SELF-RELIANCE

In Q3, the Program and GDVC finalized discussions on the three-day LMD skills training for 45 Customs officials in leadership positions. GDVC HRD confirmed counterpart funding as an effort to self-reliance. In the future, counterpart funding will be encouraged to cover more training-related expenses. The Program and HRD expect the LMD training to have a clear impact on each of the participants and the effectiveness of their departments. The Program-supported training will be the first instance of GDVC officials receiving tailored leadership and management courses from a local private higher education institution following international standards. Further, the training materials and curricula supported by the Program will be adapted by the HRD for future GDVC professional development courses.

PRIVATE SECTOR ENGAGEMENT

Throughout the quarter, the Program supported GDVC in Customs-Business dialogue including consultative workshops on the SI scheme, surveys, and key informant interviews. Most significantly, the CSS 2020 shows areas for further reform as identified by businesses. This information will be vital in developing future private sector engagement activities. In addition, the Program reached an agreement with VCCI on the need to deepen the private sector’s role in the NTFC. The Program also began working with the VCCI Da Nang chapter and opened discussions with VCCI in HCMC.

Q3 MEDIA SPOTLIGHTS

READ | June 19, 2021 – Vietnam Financial Times: Innovation in specialized inspections of goods at border gate: (in Vietnamese).

WATCH | June 6, 2021 – News- VTV1: News on the SI scheme/Decree that the Program is supporting GDVC (in Vietnamese).

READ April 17, 2021 – VNEconomy: Vietnam has fulfilled 74% of its commitment to facilitating trade (in Vietnamese).

READ | April 16, 2021 – Quang Tri Radio and TV: Border management workshop to facilitate trade at the border (in Vietnamese).

WATCH | April 13, 2021 – VTV 1: New Program dedicated to Customs issues features USAID/Vietnam and USAID Trade Facilitation Program (in Vietnamese).

READ | April 7, 2021– Quang Tri TV: The Trade Facilitation Project Steering Committee of Quang Tri province works with the United States Agency for International Development (in Vietnamese).

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3. COLLABORATION AND COORDINATION 3.1. OTHER USAID PROJECTS Due to social distancing and travel restrictions imposed by the GVN, the Program mainly coordinated with other USAID activities online:

The Program maintains regular correspondence with several USAID-funded projects, such as the ASEAN-USAID Inclusive Growth in ASEAN through Innovation, Trade and E-Commerce (ASEAN-USAID IGNITE), U.S. Support for Economic Growth in Asia (US-SEGA) and USAID LinkSME.

On April 22, the Program’s key experts met with the Global Alliance on Trade Facilitation project in Vietnam to exchange information about the respective objectives of the two programs and promoting coordination to avoid overlapping. During the meeting we also discussed about the priorities of GDVC in the next future and of the technical nature of customs bonds.

On April 19, the Program met representatives from the USDA to discuss selected concerns regarding the draft Decree on the new SI scheme. During the meeting, USDA also informed the Program that the GVN should notify the Decree to the WTO. The Program sent a technical note to GDVC and MARD, recommending notification to the WTO. Vietnam notified the Decree on SI by the end of June.

On April 19, CBP, in cooperation with USAID and USDA, delivered an online training course on the experience in the United States with specialized inspections. The Program facilitated the organization of training attended by the representatives of several GDVC Departments.

On April 28, the Program participated in an online training on “fraud awareness” delivered by the USAID Office of the Inspector General (OIG). USAID OIG provided an overview of compliance and fraud prevention, focusing on several areas such as sub-partner management, procurements, quality control, sexual exploitation and abuse and reporting fraud.

3.2. OTHER DONOR AND GOVERNMENT OF VIETNAM ACTIVITIES

On April 26, the Program participated in an online meeting with representatives of the School of the Government (SOG) of the University of Economics in HCMC, a partner of USAID through the Strengthening Provincial Capacity (SPC) project, to explore opportunities to collaborate in implementing capacity building activities. The Program is unable to collaborate with the SOG as the institution is part of the Ministry of Education and Training.

On June 24, the Program met with the VCCI Legal Department to discuss the possibility of further cooperation, especially in promoting the deeper involvement of VCCI in the NTFC and, at a provincial level, in the newly established PTFCs.

4. CHALLENGES AND PROPOSED SOLUTIONS 4.1. PARTNERS’ RELUCTANCE OR LACK OF CAPABILITY FOR ONLINE ACTIVITIES Social distancing and other restrictions related to the COVID-19 continue to affect Program implementation. In general, GVN and private sector partners are reluctant to meet with the Program due to the risk of contracting COVID-19. To mitigate this risk, the Program has adapted internal operations and systems to manage working remotely, but not all partners are receptive to online meetings. In many cases, partner GVN officials are unable to utilize or do not have computers for videoconferences from home and must travel to their offices for meetings, which may not always be possible due to restrictions. The Program is also working with GDVC to identify a professional digital platform for real-time communications. For training, GDVC and provincial customs have emphasized their preferences for postponing capacity building activities until in-person sessions can be held. Certain training topics such as on leadership, integrity, and gender also require dynamic interaction with and between participants. In these cases, virtual training is not

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effective. In-person training is delayed to Q4 or until GVN restrictions are lifted. In the meantime, the Program will continue to work with partners through videoconferences and phone.

4.2. PROVINCIAL AUTHORITIES ARE PRE-OCCUPIED Although travel to the provinces remained restricted throughout the quarter, the Program continued frequent communication with partners in the provinces. Partners’ response to Program outreach was tepid and often delayed as partners addressed local outbreaks of COVID-19. As noted above, the Program is utilizing videoconferencing, phone calls as well as instant messaging applications to maintain communications with provincial partners.

4.3. VACCINATIONS ARE NOT YET WIDESPREAD Vaccine distribution remained limited to first responders and high priority groups during the quarter. Majority of GVN counterparts were not yet vaccinated by the end of June. All Program staff remain unvaccinated with no prospect of receiving the vaccine in the short-term. The risk posed by the new variants of COVID-19 to GVN partners and Program personnel will be a challenge until vaccines become more widely available. The Program will continue to follow GVN guidance on social distancing and limited in-person meetings until vaccination is possible.

5. PROGRESS REPORT ON INDICATORS

This section provides an overview of the Program’s progress to date against its purpose, intermediate results (IRs) and key performance indicators.

PURPOSE: CROSS-BORDER TRADE EXPEDITED AND VIETNAM’S ABILITY TO IMPLEMENT WTO TFA COMMITMENTS ENABLED

Despite the continuing impact of COVID-19, Vietnam’s trade volume showed a steady increase of about 30-percent in this first three quarters of FY2021 compared with the same period prior to the pandemic in FY2018 & 2019. The trade balance in the first three quarters of FY2021 was $2.3 billion. In this context, implementation of the WTO TFA remains crucial. In Q3, the Program continued to support Vietnam’s ability to implement WTO TFA commitments and expedite cross-border trade through the core activities of strengthening the role of the NTFC and setting up of PTFCs in six targeted provinces, the adoption and implementation of a risk-based approach to customs and specialized inspections institutions, customs digitalization, and private sector engagement. The Program supported five (5) WTO TFA provisions in Q3 for a total of 15 provisions supported in FY2021 to date, or 75 percent of Y3 target, as shown in annex A.1.

IR1: POLICIES AND PROCEDURES ACROSS GVN UNITS HARMONIZED AND SIMPLIFIED

The Program supported development or revision of a total 22 legal instruments since FY2019 including: SI related procedures (13), risk management (1), customs procedures (3), National Single Window (1), e-commerce (2), the Istanbul Convention on Temporary Admission (1), tax for imports and exports (1). Of these, 15 have been approved and implemented while 7 are still proposed for the adoption.

While it requires great effort and time to improve trade facilitation policies and procedures across different GVN units, the Program made important progress in Y3 by supporting GDVC as the permanent agency of Committee 1899. Throughout Y3, GDVC urged and closely worked with ministries and sectors to implement the NSW and ASW Master Plan and trade facilitation. According to GDVC, 226 administrative procedures of 13 ministries and sectors are now officially implemented on the NSW, with approximately 3.89 million dossiers from 47,700 participating businesses, as of June 15, 2021. These efforts and improvements in specialized inspections procedures on cargo quality and food safety management were recognized in CSS 2020. In Quarter 3, two (2) additional circulars were issued, and one (1) decree was revised as the result of the Program’s support to the fourth SILR. The Program supported a total of 8 legal acts in the first three quarters of FY2021, or 67 percent of the Y3 target.

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IR 2 & 3: NATIONAL AND PROVINCIAL COORDINATION AND IMPLEMENTATION STRENGTHENED

The coordination and implementation at national and provincial levels have also been strengthened through the reform of trade facilitation-related institutions to promote better national and provincial coordination through the studies to promote more effective implementation of the WTO TFA, reform of the NTFC, the establishment of effective trade facilitation mechanisms at the provincial level and training for provincial Customs officials. At the national level, the Program worked with VCCI to strengthen the role of the private sector in the NTFC. At the provincial level, three (3) out of six (6) targeted provinces set up PTFCs, including Dong Nai, Quang Tri and Da Nang. In HCMC, the Program began assisting local customs assess and improve the security of an IT application to improve the connection and interaction among customs, businesses, and other agencies. In addition, the Program delivered training on customs border management in Quang Tri provinces for 58 Customs officials from GDVC, Quang Tri and Da Nang Customs. The Program capacity building efforts have also led to promising results. VCS with the Program’s support is transforming to become a modern customs training center with e-learning programs. After the Program’s support in Y1, the World Customs Organization (WCO) CliKC! courses are now a part of VCS’s formal education programs while the eLMS continues to be developed.

These reforms are reflected in the CSS 2020. Respondent businesses shared increased satisfaction and positive feedback on Customs’ services, provision of information and responses to business’ requests. About 78.3 percent and 73.1 percent of businesses reported satisfaction with the information provided via the GDVC portal and local customs departments’ websites, respectively. Similarly, 63 percent and 72 percent of businesses reported satisfaction with the GDVC’s and the local customs departments’ feedback or responses to businesses’ information requests. Local customs improved compliance with national policies in terms of customs documentation and costs. This is attributed to GDVC efforts to improve customs procedures and build the capacity of local customs in previous years with the Program’s support.

IR 4: PARTNERSHIPS BETWEEN CUSTOMS AND THE PRIVATE SECTOR ENHANCED

The Program also engaged the private sector across all activities through consultative and dissemination workshops on newly developed or revised legal acts, surveys, and meetings of the Program’s private sector consultative group.

At the national level, the Program worked with VCCI and local business associations to support the private sector’s role and representation at NTFC and finalization of the Customs Satisfaction Survey 2020. Other international associations and companies were actively engaged in periodic consultative group meetings. The Program also continued to support GDVC in organizing two dissemination workshops on the newly issued Decree 18/2021/ND-CP on import and export taxes, which was attended by over 400 representatives from the private sector. The Program’s post-event evaluation of the workshop in HCMC received very positive feedback from logistics and materials and speakers to the participants’ learning and applicability of the knowledge provided.

USAID.GOV QUARTERLY REPORT APRIL TO JUNE 2021 ANNEX A |

ANNEX A.1 MONITORING, EVALUATION, AND LEARNING TABLES AND FIGURES

# Article Category Definite date for implementation

Select Program activities

1 Article 1.1 – Publication B December 2021 • Publication of Program-supported legal instruments on the e-Government Portal, relevant GVN’s ministries of MOLISA, MOH, MOIT and GDVC’s websites

2 Article 1.2 – Information Available Through Internet

B December 2021 • Publication of Program-supported legal instruments on the e-Government Portal, relevant GVN’s ministries of MOLISA, MOH, MOIT and GDVC’s websites

3 Article 2.2 – Consultations

A Full compliance • Consultation workshops on revision of:

o Decree 08/2015/ND-CP o Decree 59/2018/ND-CP

o Official Dispatch No. 2765/TCHQ-GSQL of GDV

• Consultation workshops on Draft Decree on the management mechanism, methods and procedures for state quality and food safety inspection for imported goods (SI Decree)

• Customs Satisfaction Survey 2020

4 Article 5.1 - Notification for Enhanced Controls or Inspections

B December 2021 • Draft SI Decree: Regulatory impact assessment for administrative procedures to calculate compliance costs under the draft SI decree.

• Assessment of specialized inspection reform over the last 6 years (2015-2020)

• SI reform with the Ministry of Industry and Trade (MOIT) on three key topics of (i) energy efficiency inspection; (ii) specialized

TABLE A.1: NUMBER OF WTO TFA PROVISIONS SUPPORTED THROUGH THE PROGRAM ACTIVITIES IN Q1, 2 & 3, FY2021.

USAID.GOV QUARTERLY REPORT APRIL TO JUNE 2021 ANNEX A |

management (permits); and (iii) SI under MOIT management

5 Article 8 – Border Agency Cooperation

B December 2021 • Draft SI Decree: Regulatory impact assessment for administrative procedures to calculate compliance costs under the draft SI decree.

• Assessment of specialized inspection reform over the last 6 years (2015-2020)

• SI reform with the Ministry of Industry and Trade (MOIT) on three key topics of (i) energy efficiency inspection; (ii) specialized management (permits); and (iii) SI under MOIT management

6 Article 7.4- Risk Management

C December 2024 • Draft SI Decree that applies RM methodology for inspection of goods

7 Article 7.7 - Trade Facilitation Measures for Authorized Operators

B December 2023 • Research paper: International Authorized Economic Operator (AEO) Programs – Situational Analysis, Best Practices and Gap Analysis

8 Article 7.9 - Perishable Goods

B December 2022 • Draft SI Decree

9 Article 10.1 - Formalities and Documentation Requirements

A Full compliance Workshops where Customs officials reviewed and revised:

o Decree 08/2015/ND-CP o Decree 59/2018/ND-CP

o Official Dispatch No. 2765/TCHQ-GSQL of GDVC

o Draft Circular replacing Circular 15/2021/TT-BNNPTNT

o Draft SI Decree

10 Article 10.3 - Use of International Standards

B December 2021 • Specialized Inspection Legal Review 4 – issuance of list of goods with HS codes for goods under management of MOLISA and MOH

11 Article 10.4 C December 2021 • National Single Window model/assessment and Decree on sharing of information

• Review, analysis, assessment of the Business Model & Business Requirements for Customs ICT Development

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12 Article 10.7 - Common Border Procedures and Uniform Documentation Requirements

A Full compliance • Coordinated Border Management Training in Quang Tri

• Cat Lai congestion assessment report

13 Article 12 – Customs Cooperation

B December 2022 • Dissemination workshops on update provisions of ROO under the new FTAs

• Coordinated Border Management Training in Quang Tri

14 Article 23.1 - Committee on Trade Facilitation

Notified Full compliance • NTFC Assessment Report

• Feasibility Study on the setup of the local trade facilitation mechanisms in the six selected provinces

• 3 PTFC were set up in provinces of Dong Nai, Quang Tri and Da Nang

15 Article 7.1 – Pre-Arrival Processing

• Pre-feasibility report on Cat Lai Scheme, capacity building and training, recommendations on IT support system which are to be identified at the conclusion of the study

FIGURE A.1: VIETNAM’S TRADE VOLUME OF GOODS FOR FIRST THREE QUARTERS OF FY2018-2021 (IN BILLIONS OF US$)

Source: General Department of Vietnam Customs, July 2021

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TABLE A.2: LEGAL INSTRUMENTS SUPPORTED THROUGH PROGRAM ACTIVITIES IN Q1, 2 & 3, FY2021.

# Legal Instruments supported with USG assistance

Thematic Area Status

1 Decree #18/2021/ND-CP dated 11 Mar 2021 revising Decree 134/2016/NĐ-CP dated 01 Sept 2016

Import and export tax Implemented

2 New Decree that is revised and supplemented Decree #08/2015/ND-CP and #59/2018/ND-CP

Customs law on customs procedures, examination, and supervision and control procedures

Proposed

3 Draft Decision replacing Official Dispatch No. 2765/TCHQ-GSQ

Customs procedure codes in VNACCS system

Proposed

4 Draft Circular replacing Circular 15/2021/TT-BNNPTNT

Provision of the list of HS codes for goods under MARD’s management

Proposed

5 Draft Decree regulating state inspection of quality and food safety for imported goods

Specialized inspection Proposed

6 Draft decree revising Decree #74/2018/ND-CP dated May 15, 2018, amending, and supplementing of the Decree 132/2008/ND-CP providing specific guidance on enforcement of the Law on the Quality of Products and Goods

Specialized inspections Proposed

7 Circular 01/2021/TT-BLĐTBXH dated June 4, 2021

Provision of list of unsafe goods under MOLISA's management

Implemented

8 Circular 03/2021/TT-BYT dated March 4, 2021,

Revision of Circular #48/2018/TT-BYT dated December 28, 2018 to provide list of and HS codes for medical and herbal ingredients under MOH’s management

Implemented

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FIGURE A.2: LEVEL OF EASE IN COMPLIANCE WITH FOOD SAFETY INSPECTION PROCEDURES ACROSS GVN UNITS

Source: Customs Satisfaction Survey 2020

FIGURE A.3: LEVEL OF EASE IN COMPLIANCE WITH CARGO QUALITY INSPECTION PROCEDURES ACROSS GVN UNITS

Source: Customs Satisfaction Survey 2020

USAID.GOV QUARTERLY REPORT APRIL TO JUNE 2021 ANNEX A |

FIGURE A.4: LEVEL OF EASE IN COMPLIANCE WITH SPECIALIZED INSPECTION PROCEDURES IN OTHER AREAS

Source: Customs Satisfaction Survey 2020

FIGURE A.5: BUSINESSES LEVEL OF SATISFACTION WITH CUSTOMS SERVICES

Source: Customs Satisfaction Survey 2020, June 2021

75.90%

50.00%

62.10%58.00%

78.30%

63.00%

73.10% 72.00%

Information provided byGDVC

Feedback from GDVC Information provided bylocal customs

Feedback from localcustoms

2018 2020

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FIGURE A.6: PROVINCIAL CUSTOMS’ IMPLEMENTATION COMPLIANCE WITH CENTRAL POLICIES (DOCUMENTATION AND COSTS)

Source: Customs Satisfaction Survey 2020, June 2021

Source: Customs Satisfaction Survey 2020, June 2021

60%64% 65%

75%

55%

66%

89% 91% 95% 94%89%

95%

Hanoi Hai Phong Da Nang Quang Tri HCMC Dong Nai

Documentation

2018 2020

83%

79%

92%

88%

85% 85%

92%90%

88%

91%

87%

94%

Hanoi Hai Phong Da Nang Quang Tri HCMC Dong Nai

Costs

2018 2020

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FIGURE A.7: RESPONDENTS’ LEARNING AND APPLICABILTIY OF KNOWLEDGE GAINED FROM TRADE FACILITATION PROGRAM EVENTS

Source: USAID Trade Facilitation Program Post-Event Evaluation Survey, Dissemination Workshop of Decree #18/2021/ND-CP, April 2021

USAID.GOV QUARTERLY REPORT APRIL TO JUNE 2021 ANNEX A |

ANNEX A.2.1 FY2021 KEY CONTEXT INDICATORS Trade and Growth Project Purpose:

Replicable approaches to facilitate a more attractive and predictable trade and investment climate for domestic and international

Indicator Data Source

Baseline data FY2019 FY2020 Status – FY2021 FY2021 Performance Achieved to Date (in %) Comment(s)

Year Value Annual

Cumulative Actual

Annual Cumulative Actual

Q1 Q2 Q3 Q4

USAID Trade Facilitation Program Purpose: Cross-border trade expedited and Vietnam’s ability to implement WTO TFA commitments enabled 1 Trade value of goods

imported and exported from Vietnam Unit: Billion USD

GDVC website

2018 Export: 258.68 Import: 251.69

N/A Export: 266.92 Import: 243.70

Export 80.15 Import76.91

Export 78.40 Import 75.58

Export 79.94 Import 83.70

N/A Q1-Q3: Main imported & exported goods were textiles, electronics, and wood products from Vietnam to ASEAN, South Korea, China, US, and EU.

2 Mean number of days to clear customs for imports Unit: Day

GDVC 2018 1.61 (38.4h)

1.75 (42.03h)

N/A1

N/A N/A To be monitored and reported in annual report

3 Mean number of days to clear customs for exports Unit: Day

GDVC 2018 0.19 (4.33h) 0.17 (4.07h) N/A N/A To be monitored and reported in annual report

4 Median number of days to clear customs for import Unit: Day

GDVC 2018 0.94 (22.34h)

1.05 (25.14h) N/A N/A Median number of days was 0 because cargos in this value went thru the green line.

5 Median number of days to clear customs for export Unit: Day

GDVC 2018 0 (0h)

0 (0h) N/A N/A Mode number of days was 0 because most cargo went thru the green line.

6 Mode number of days to clear customs for import Unit: Day

GDVC 2018 0 (0h)

0 (0h)

N/A N/A Mode number of days was 0 because most cargo went thru the green line.

7 Mode number of days to clear customs for export Unit: Day

GDVC 2018 0 (0h) 0 (0h) N/A N/A Median number of days was 0 because cargo in this value went thru the green line.

1 This data is collected by the calendar year (January-December). The FY2020 data is expected to be available in June 2021.

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ANNEX A.2.2 FY2021 KEY PERFORMANCE INDICATORS Trade and Growth Project Purpose:

Replicable approaches to facilitate a more attractive and predictable trade and investment climate for domestic and international

Indicator Data Source

Baseline data FY19&20 FY21 Quarterly Status – FY21

FY2021 Performance

Achieved to Date (in %)

Comment(s)

Year Value Annual

Cumulative Actual

Annual Planned Target

Q1 Q22 Q3 Q4

USAID Trade Facilitation Program Purpose: Cross-border trade expedited and Vietnam’s ability to implement WTO TFA commitments enabled

8 Number of WTO Trade Facilitation Agreement provisions supported by USG assistance (bi-annual) Unit: Number of WTO TFA provisions

Program record

2018 0 18 A: 4 B: 7 C: 6 Notified: 1

20 10 A: 3 B: 8 C: 2 Notified: 1

4

N/A 75% Program supported articles: A: Articles 2.2, 10.1, 10.7 B: Articles 1.1, 1.2, 5.1, 7.7, 7.9, 8, 10.3 C: Article 10.4, 7.4 Notified: Article 23.1

Intermediate Result (IR) 1: Policies and procedures across GVN units harmonized and simplified.

9 Number of laws, policies, regulations, or standards formally proposed, adopted, or implemented as supported by USG assistance3 Unit: Number of legal instruments

Program record

2018 0 14 Proposed: 2 Implemented: 12

12 5 Proposed: 4 Implemented: 1

3 Proposed: 2 Implemented: 1

N/A 67% Q1&2: 4 decrees and 1 circular on SI, tax for imports & exports and customs law on customs procedures, examination, and supervision and control procedures were reviewed and revised. Q3: 2 circulars and 1 decree on SI

IR 2: National-Provincial coordination strengthened

10 Percent of USG-assisted organizations with improved performance4

Program record

2018 0 30%5 40%6 N/A N/A This annual indicator will be monitored and reported in annual report

2 Denotes bi-annual result 3 Minor change to indicator title Oct 2019 & Mar 2021 4 New indicator - added in Feb 2020. 5 2 out of 7 of GDVC departments to improve performance: VCS and CCS. 6 4 out of 10 of GDVC departments to be supported

USAID.GOV QUARTERLY REPORT APRIL TO JUNE 2021 ANNEX A |

Unit: %

11 Number of government agencies supported by USG assistance to integrate risk-management approaches. Unit: Number of government agencies

Program record

2019 0 2 4 N/A N/A This annual indicator will be monitored and reported in annual report

IR 3: Provincial level implementation and inter-provincial coordination strengthened

12 Person hours of USG-supported training completed in trade and investment. Unit: Number of hours

Program Training Sign-in Sheet

June 2018

0 5,962 6,000 8,224 0 464 N/A 145% Q1: About 500 Customs officials attended 5 training on Circular 81/2019/TT-BTC on risk management, ROO under new FTAs Q3: 58 Customs officials attended 1-day training on CBM

13 Number of persons trained with USG assistance to advance outcomes consistent with gender equality or female empowerment through their roles in public or private sector institutions or organizations. Unit: Number of people

Program Training Sign-in Sheet

2018 0 121 100 0 0 N/A N/A 0% Training courses on gender and social inclusion to build capacity of gender and gender equality in trade facilitation for key counterparts at GDVC will be organized in Q4.

14 Number of government officials receiving USG-supported anti-corruption training. Unit: Number of government officials

Program Training Sign-in Sheet

2018 0 62 60 0 0 N/A N/A 0% Training courses on anti-corruption for key counterparts will be organized in Q4.

IR 4: Partnership between customs and the private sector enhanced

15 Value of private sector resources leveraged with USG assistance (bi-annual) Unit: USD

Program Record

2018 0 65,569.687 18,000 30,934 6,640 N/A 209% Q1&2: Represents in-kind (time) contribution of about 800 representatives from PS at 6 consultation workshops

USAID.GOV QUARTERLY REPORT APRIL TO JUNE 2021 ANNEX A |

of new legal acts and dissemination workshop, and VCCI resources for Program activities. Q3: Represents in-kind (time) contribution of about 400 representatives from PS at the dissemination workshop of Decree 18.

ANNEX B PRESS CLIPPINGS QUARTER 3 FY2021

No Media Agency

Type Language Date of issue

Title Link

1

Hai Quan Online (Customs Online)

Online Vietnamese April 7, 2021

Vietnam Customs’ implementation of FTAs on the right track

https://haiquanonline.com.vn/hai-quan-viet-nam-tich-cuc-trien-khai-hiep-dinh-tao-thuan-loi-thuong-mai-theo-dung-lo-trinh-143721.html

2

Hai Quan Online (Customs Online)

Online Vietnamese April 8, 2021

Evaluation of Vietnam's implementation of the Trade Facilitation Agreement

https://www.customs.gov.vn/Lists/TinHoatDong/ViewDetails.aspx?ID=30682&Category=H%E1%BB%A3p%20t%C3%A1c%20qu%E1%BB%91c%20t%E1%BA%BF

3

Customs News

Online English April 9, 2021

Vietnam Customs implements the Trade Facilitation Agreement according to the roadmap

https://english.haiquanonline.com.vn/vietnam-customs-implements-the-trade-facilitation-agreement-according-to-the-roadmap-17970.html

4

Vietnam Economic News

Online Vietnamese April 10, 2021

TFA Enforcement: Accelerate risk management and specialized inspection reforms

https://congthuong.vn/thuc-thi-tfa-day-manh-quan-ly-rui-ro-va-cai-cach-kiem-tra-chuyen-nganh-155015.html

5

VnEconomy Online Vietnamese April 17, 2021

Vietnam has completed 74% of its commitments on trade facilitation

https://vneconomy.vn/viet-nam-da-hoan-thanh-74-cam-ket-tao-thuan-loi-thuong-mai-646362.htm2

6

Thoi Bao Tai Chinh Viet Nam(Vietnam Financial Times)

Online Vietnamese April 27, 2021

Decree 18: Strong reform of tax procedures, promoting business development

http://thoibaotaichinhvietnam.vn/pages/nhip-song-tai-chinh/2021-04-27/nghi-dinh-18-cai-cach-manh-me-thu-tuc-thue-thuc-day-phat-trien-kinh-doanh-103039.aspx

7

Thoi Bao Tai Chinh Viet Nam(Vietnam Financial Times)

Online/printed

Vietnamese May 30, 2021

Reforms on specialized inspection of goods at border gates: Enterprises’ dream to come true soon

http://thoibaotaichinhvietnam.vn/pages/nhip-song-tai-chinh/2021-05-30/doi-moi-kiem-tra-chuyen-nganh-hang-hoa-tai-cua-khau-doanh-nghiep-mong-som-thanh-hien-thuc-104843.aspx

8

Thoi Bao Tai Chinh Viet Nam (Vietnam Financial Times)

Online/printed

Vietnamese June 19, 2021

Reforms of specialized inspection of goods at the border gate: Bringing many benefits to the economy

http://thoibaotaichinhvietnam.vn/pages/nhip-song-tai-chinh/2021-06-19/mang-lai-nhieu-loi-ich-cho-nen-kinh-te-105984.aspx