September 20, 2024

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Vietnam’s Digital Journey in Tax and Customs

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The government has highlighted the progress it has made in digitally transforming the tax and customs sectors. Can Van Luc, Chief Economist at the Bank for Investment and Development of Vietnam (BIDV) and a member of the National Financial and Monetary Policy Advisory Council, noted that the tax and customs reform and management strategy has been issued with many specific solutions.

Currently, the taxation sector engages with 907,000 businesses and about 28 million people. It has successfully implemented electronic invoices for over a year, which marks a significant achievement. Electronic invoices have created a transparent and fair business environment, more streamlined administrative processes, and led to higher productivity.

Furthermore, according to the Ministry of Finance, the electronic tax declaration system has been implemented across all tax departments in the country’s 63 provinces and cities. More than 99% of businesses use electronic platforms for tax declaration, payment, and refund processes.

In the field of customs, around 80,000 businesses conduct import and export activities. Among them, 64,700 have registered for the single-window public service system dedicated to imports and exports, where 250 administrative procedures are conducted.

The customs sector has also advanced its digitisation efforts, reaching levels 3 and 4 on the national public service portal. Level 3 public services allow users to fill out and send online document forms to state agencies and organisations with fees to be paid directly at these agencies. Level 4 services allow users to fill in and pay for application forms entirely online.

Moreover, the customs procedure system will be redesigned to follow a digital customs model with increasing levels of digitisation and automation. The government aims for all customs procedures to be digitised by 2025 with a target of converting 95% of documents in customs records into digital data.

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A spokesperson from the General Department of Customs affirmed the agency’s commitment to enhance the customs legal system, modernise customs procedures in accordance with international obligations, and fulfil the demands of digital transformation.

Nguyen Thi Cuc, Chairwoman of the Vietnam Tax Consulting Association, anticipates the imminent use of citizen identification numbers in conducting tax and customs-related procedures. This number will be applicable to taxes, customs, and social insurance, contributing to digitisation for the benefit of both citizens and society, aligning with the goals of e-government.

Digital transformation still requires continuous movement and efforts from the central government to local authorities. This entails the establishment of synchronised technical infrastructure and a fundamental legal framework. While the tax and customs sectors have made significant progress, there is a need for increased automation. Moreover, the government should consider adopting appropriate technology and making strategic investments in technology, Luc noted.

Promoting the digitalisation of the tax and customs sectors is part of the government’s plan to build a digital society and economy. In 2020, Vietnam initiated a nationwide digital transformation programme to modernise government administration, enhance business operations, and transform the way people live and work. This programme is dedicated to creating a secure, inclusive, and extensive digital ecosystem. The national digital transformation initiative serves a dual purpose of advancing both the digital government and economy while fostering Vietnamese digital enterprises with global capabilities.

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