1 | quarterly report april – june 2019 usaid

1 | QUARTERLY REPORT APRIL – JUNE 2019 USAID.GOV

USAID.GOV QUARTERLY REPORT APRIL – JUNE 2019 | 2

CONTENTS

ACRONYMS 3

1. EXECUTIVE SUMMARY 4 Priorities for Next Quarter 4

2. PROJECT OVERVIEW 6 2.1 Project description 6 2.2 Quarter THREE Fiscal Year 2019 Program Highlights 7

3. WORK PLAN IMPLEMENTATION PROGRESS 10 3.1 Component 1. Harmonization and Simplification of Key Risk management and Specialized Inspections-related Policies at the Central Level and Strengthening the role of the NTFC 10 3.2 Component 2. Strengthening National-Provincial (Vertical) Coordination of Trade Facilitation Strategies and Facilitating Import and Export of Goods 12 3.3 Component 3. Strengthening the Provincial Level Implementation and Inter-Provincial Coordination in at Least Five Targeted Provinces 14 3.4 Component 4. Enhancing the Partnership between Customs and the Private Sector 15 3.5 Cross-cutting Issues 15

4. COLLABORATION AND COORDINATION 18 4.1 Other USAID Projects 18 4.2 Other Donor and Government of Vietnam Activities 18

6. PRIORITIES FOR PROGRAMMING NEXT QUARTER 22 6.1 Component 1. Harmonization and Simplification of Key Risk Management and Specialized Inspections-related Policies at the Central Level and Strengthening the Role of the NTFC 22 6.2 Component 2. Strengthening National-Provincial (Vertical) Coordination of Trade Facilitation Strategies and Facilitating Import and Export of Goods 23 6.3 Component 3. Strengthening the Provincial Level Implementation and Inter-provincial Coordination in at Least Five Targeted Provinces 26 6.4 Component 4. Enhancing the Partnership between Customs and the Private Sector 26 6.5 Cross-cutting Issues 28

7. PROGRESS REPORT ON INDICATORS 30 7.1 Activity Monitoring, Evaluation and Learning 30

APPENDIX A. FY 2019 KEY PERFORMANCE INDICATORS 31


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

CBP U.S. Customs and Border Protection

CLiKC! Customs Learning and Knowledge Community

COR Contracting Officer’s Representative

DPM Deputy Prime Minister

FDI Foreign Direct Investment

FY Fiscal year

GATF Global Alliance for Trade Facilitation

GDVC General Department of Vietnam Customs

GVN Government of Vietnam

HS Harmonized System

LinkSME USAID Linkages for Small and Medium Enterprises Project

MEL Monitoring Evaluation and Learning

MOF Ministry of Finance

MOIT Ministry of Industry and Trade

NSW National Single Window

NTFC National Trade Facilitation Committee

ODA Official Development Assistance

OOG Office of the Government

RO Representative Office

SME Small and medium enterprises

STFE Senior Trade Facilitation Expert

SWOT Strengths, weaknesses, opportunities, and threats

TF Trade Facilitation

TFA WTO Trade Facilitation Agreement

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


1. EXECUTIVE SUMMARY In Quarter 3 (Q3) of the Fiscal Year 2019, the USAID Trade Facilitation Program completed several activities in the Y1 work plan, and achieved notable results while awaiting formal Official Development Assistance (ODA) approval. A key milestone towards full ODA approval was achieved on May 24th when Deputy Prime Minister Vuong Din Hue signed the project document. Formal approval is expected to be given by the Minister of Finance through a formal ministerial Decision in early July.

Outputs of several Q3 activities contributed to the efforts of the General Department of Vietnam Customs (GDVC) to address some of the most pressing challenges the business sector is facing in Vietnam. These included the comprehensive review, amendment and supplement of Circular 38/2015 and 39/2018 on customs procedures, customs supervision and inspection and administrative procedures applied to exported and imported goods; the continuing review of Specialized Inspection legal documents; and the review and revision of a draft Circular amending and supplementing Circular 38/2015 on customs valuation of import and export goods.

Another highlight includes the success of four training courses conducted by the USAID Trade Facilitation Program on the use of the World Customs Organization’s (WCO) CliKC! e-learning online application. As a result, 106 officials of the GDVC and local customs departments successfully obtained Certificates of Achievements from the WCO, thereby satisfying the target set by the GDVC for 2019 (in 2018, the WCO granted only 2 certificates to Vietnamese customs officials).

The partnership between the GDVC and the Program team continued to deepen, through growing trust, and the professional capacity and result-oriented attitude of the Program team as testified by the high number of new technical assistance requests received during the pre-ODA period.

In Q3, the Program team also made substantial progress in cross-cutting activities such as the development of the Private Sector Engagement Strategy and Plan, the Strategic Communications Plan, the inventory and analysis of surveys conducted by the GVN, and in involving private sector stakeholders. The Program team participated in several events to promote the cooperation with other USAID-funded projects and other US Government Agencies such as the US Customs Border Protection (CBP) and the United States Department of Agriculture (USDA). The Program also cooperated and collaborated with other donors and development cooperation projects including the Delegation of the European Union to Vietnam, the Global Alliance on Trade Facilitation (GATF), the WCO International Trade Center (ITC) and other initiatives of the Government of Vietnam (GVN) including a conference on assessing government initiatives to innovate specialized inspections that was jointly organized by the Vietnam Fatherland Front, several GVN agencies and business associations.

PRIORITIES FOR NEXT QUARTER

As formal ODA approval imminent, the Program will focus on the organization of the project launch event to increase awareness among GVN units and other stakeholders of the Program’s objectives and activities as well as US government support to Vietnam. The Program will then conduct sub-national events in the central and southern localities of Vietnam to introduce the Program objectives and activities while increasingly targeting the private sector.

The Program will continue implementing activities started in Q3, including training of trainers for the WCO CLiKC! E-learning package, and the dissemination and training for the Revised Circular 39/2015 on valuation. Moreover, as a fully-fledged ODA approved project, the Program will start an


ambitious number of new technical activities on key trade facilitation-related subjects whose preparation already started in Q3 and will require the recruitment of local and international technical assistance experts.

For example, the Program expects to start Q4 by supporting GDVC in finalizing and promoting the awareness of a new circular on Risk Management and of a Decree on e-commerce, and two survey activities geared towards the private sector. These include a survey to collect data and information for the Administrative and Procedural Cost Index (APCI) focused on Customs procedures and to assess business satisfaction with the National Single Window (NSW) system and processes. Other anticipated activities that require the organization of field trips to the Program’s selected provinces to carry out a Stakeholder Analyses and a Business Process Analysis (BPA) exercise addressing Customs Border Management (CBM) procedures specifically in the context of Specialized Inspection and Risk Management.

Furthermore, the Program will support the implementation of two capacity building-related activities: (i) producing report on the feasibility of setting up an e-learning training system at the Vietnam Customs School; and (ii) organizing a training course for GDVC officials on the use of ‘R’ programming software for measuring trade compliance. Lastly, the Program will organize a working visit to Washington, D.C. and New York for 12 Vietnamese Government officials to observe and learn about customs procedures related to e-commerce, National Single Window (Automated Commercial Environment or “ACE”) and other selected WTO TFA and trade facilitation measures.


2. PROJECT OVERVIEW

2.1 PROJECT DESCRIPTION

The United States Agency for International Development (USAID) Trade Facilitation Program (“Trade Facilitation Program” or “the Program”), is a five-year project 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 primary 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) for Vietnam. Within this context, the Program will support national and provincial stakeholders in promoting the benefits to be gained by the application of a risk management approach to specialized inspections mandated by line ministries to protect food safety, public health, and the environment. Specialized inspections are considered a major impediment to trade, causing major delays in border clearance. The Program aims, in particular, to strengthen the role and capacity of the NTFC to effectively implement and coordinate trade facilitation (TF) policies and procedures, and to promote more proactive public-private dialogue.

The USAID Trade Facilitation Program activities are organized into four different components:

• Component 1: Harmonization and simplification of key risk management and specialized inspections-related policies at the central level and strengthening the role of the NTFC

• Component 2: Strengthening National-Provincial (Vertical) coordination of trade facilitation strategies and facilitating import and export of goods

• Component 3: Strengthening the provincial level implementation and inter-provincial coordination in at least five targeted provinces

• Component 4: Enhancing the partnership between customs and the private sector

Program Name: USAID Trade Facilitation Program

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 (cities and/or countries): Vietnam

Reporting Period: Q3 FY2019: April 1, 2019 – June 30, 2019


In addition to providing targeted assistance at the central level, the Program will secure provincial buy-in by localizing technical assistance and operations in at least five provinces identified and selected in close cooperation with the GDVC. In each province, a dedicated technical provincial coordinator will provide essential support to relevant stakeholders supported by regional coordinators in Hanoi and Ho Chi Minh City.

In implementing its activities, the Program will look specifically to engage the private sector, the ultimate beneficiaries of TF, as advocates to help champion TF reforms. Achieving the Program’s objectives will help improve the trade and investment environment for Vietnamese and United States (US) companies, and help Vietnamese small and medium enterprises (SMEs) further integrate into global value chains.

2.2 QUARTER THREE FISCAL YEAR 2019 PROGRAM HIGHLIGHTS

The following section highlights of key achievements of the Program during the quarter from April to June 2019:

• Approval of project document by Deputy Prime Minister Vuong Dinh Hue

On May 24, Deputy Prime Minister Vuong Dinh Hue approved the project document, which outlines the objectives and activities of the Program. The next step in receiving official ODA approval is to secure the signature of the Minister of Finance as required by Decree 16, modified by Decree 124. Obtaining the agreement and signature of one of the senior leaders of the GVN represents a key milestone in the ODA approval process. With the cooperation and support of GDVC and USAID, this process took just under one year, less than the average time required for other USAID projects to be approved in Vietnam.

• Circulars 38/2015 and 39/2018 [FY2019 Ad-hoc activity request from the GDVC]

Work started in Q3 for an ad hoc activity requested by the Customs Control and Supervision (CCS) department of GDVC to review, amend and supplement Circulars 38/2015 and 39/2018 on customs procedures, customs supervision and inspection, export duties, import duties and administrative procedures applied to exported and imported goods. The Program engaged an international Customs Procedures Expert to review the draft Circulars and to work in conjunction with a Vietnamese Customs Procedures Expert to consult and canvas private sector stakeholders. Amendment and supplement of Circulars 38/2015 and 39/2018 will reform and improve customs procedures related to the control and management of manufacturing and processing of imported goods for export, also known as “Inward Processing Relief”.


departments and relevant government ministries. The STFE gave a presentation introducing the Trade Facilitation Program and sharing international best practices on Specialized Inspection processes and procedures Ms. Thao Nguyen of the Central Institute for Economic Management (CIEM) gave a presentation on the government’s approach to measuring and monitoring progress with simplification and reduction of administrative procedures for Specialized Inspection.

• Circular 39/2015 [FY2019 Ad-hoc activity request from the GDVC]

In June, the Program and the GDVC collaborated to organize a workshop on inviting comments on a draft Circular amending and supplementing Circular 39/2015/TT-BTC on customs valuation. Divided into two sessions, the consultative workshop, chaired by Deputy Director General Nguyen Duong Thai, was very well attended with 91 participants from businesses and relevant ministries (41 women and 50 men) in the morning and 85 participants from local customs departments (42 women and 43 men) in the afternoon. The discussions focused on the rules and methods for customs valuation and the value database used by the GDVC. Echoing the concerns of businesses, Mr. Vu Ngoc Anh, the Program’s consultant, provided comments and recommendations for improving the draft Circular by way of simplifying administrative procedures and reflecting technology advances, which ultimately will facilitate trade for businesses. While the new draft revised Circular shows some progress in effort to tackle obstacles for businesses, DDG Thai emphasized the need for a balance between trade facilitation and customs administration and enforcement. The final draft of the new Circular is to be issued by the end of June 2019.


3. WORK PLAN IMPLEMENTATION PROGRESS1

3.1 COMPONENT 1. HARMONIZATION AND SIMPLIFICATION OF KEY RISK MANAGEMENT AND SPECIALIZED INSPECTIONS-RELATED POLICIES AT THE CENTRAL LEVEL AND STRENGTHENING THE ROLE OF THE NTFC

INTRODUCTION

Program activities in Component 1 are geared 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 Trade Facilitation Agreement (TFA), with particular attention to Vietnam’s Category B and C commitments. This includes the Program supporting the implementation of the National Single Window and ASEAN Single Window, assisting to reform Specialized Inspection of imports and exports, and support to implement the TFA through strengthening the role of the National Trade Facilitation Committee (NTFC). The NTFC will be a critical mechanism for consultation, decision-making, and monitoring and evaluation for trade facilitation efforts and improvements to the business environment in Vietnam.

ACTIVITY 1.1 – NATIONAL SINGLE WINDOW AND ASEAN SINGLE WINDOW

During the planning process for the AWP for FY2019, the IT & Customs Statistics Department of the GDVC identified a need to undertake a situational survey of the actual steps within supply chains that may involve the National Single Window (NSW). This task was to be a forerunner to developing indicators to measure the effectiveness and impact of the procedures implemented or processed through the NSW. The increased operationalization and use of the NSW, greater data harmonization, improved interconnectivity and more system integration remain key objectives for the GVN and GDVC (as evidenced by Announcement No.: 105/TB-VPCP issued by Deputy Prime Minister Hue following the fourth NTFC meeting in February 2019).

In May and following a request from GDVC, the COP, STFE and members of the Program’s technical team met with GDVC and VCCI to discuss implementation of activities proposed by the Deputy Prime Minister in Announcement No. 105/TB-VPCP. The focus of the meeting was on proposals to: (i) establish an independent monitoring, reporting and evaluation mechanism for time and cost measurement of customs procedures (based upon the World Bank methodology for the Trading Across Borders (TAB) index); (ii) monitoring and measuring the processing of administrative procedures through the National Single Window (NSW); and (iii) an assessment of the business community’s level of satisfaction with public service offered by the NSW. The second and third proposals related directly to tasks within Activities 1.1 and 4.4 in the Program’s Annual Work Plan for FY2019.

ACTIVITY 1.3 – SPECIALIZED INSPECTION OF IMPORTS AND EXPORTS

In May, the Program organized the latest Specialized Inspection Legal Review (SILR) workshop in collaboration with the Customs Control & Supervision (CCS department of the GDVC as a pre-ODA activity. Although the SILR workshops are held periodically, the May workshop was organized specifically to implement instructions of the Prime Minister in Circular 320/TTg-KSTT dated 15

1 The task numbers in this section refer to the activities included in the revised Year 1 Annual Work Plan approved by USAID.


March 2019 for the Ministry of Finance to review and list the products and goods subject to Specialized Inspection by multiple agencies (hereinafter referred to as overlapping goods).

The workshop was well attended with 54 officials (31 men and 23 women) from the GVDC, provincial customs departments and relevant government ministries participating. The STFE gave a presentation introducing the Trade Facilitation Program and sharing international best practices on Specialized Inspection processes and procedures Ms. Thao Nguyen of the Central Institute for Economic Management (CIEM) gave a presentation on the government’s approach to measuring and monitoring progress with simplification and reduction of administrative procedures for Specialized Inspection.

The outputs and conclusions of the workshop were reported to the Ministry of Finance and will contribute to achieving certain objectives of GVN Resolutions 19, Resolution 02, and Decision 1254 that aim to reduce and simplify Specialized Inspection so as to reduce the time and costs to trade and to improve the general business environment and economic competitiveness of Vietnam. The workshop identified 384 separate legal documents or instruments currently regulating Specialized Inspection processes and procedures. These contain 128 lists of goods subject to inspection but some of the regulations do not classify or identify the goods using their respective Harmonized System (HS) code. Based on the findings, 1470 different products remain subject to inspection but are not yet identified by HS code. This lack of clarity and harmonization prohibits automation and is burdensome to trade while offering opportunities for misinterpretation.

Following the SILR workshop, the Ministry of Finance (MOF) issued official letter no. 6208/BTC-TCHQ dated 30 May 2019 to the Office of the Government (OOG) identifying and listing 25 categories of overlapping goods comprising of 1,012 descriptions of goods by HS (Harmonized System) codes which is equivalent to over 1,500 items specified by product name. The MOF recommended assigning a single government ministry for each case of overlapping goods and requested the OOG to moderate, facilitate and monitor acceptance and implementation by the relevant ministries.

ACTIVITY 1.4 – ADMINISTRATION OF WTO TFA IMPLEMENTATION INCLUDING DETAILED ASSESSMENT OF THE IMPLEMENTATION LEVEL OF TFA COMMITMENTS

Activity 1.4 is compose of several individual tasks as agreed with the GDVC, many of which will have to be undertaken later in FY2019 and/or thereafter. As the Program has not yet received ODA approval, there has not been an opportunity to have deeper discussions with the International Cooperation Department (ICD) of the GDVC to initiate tasks and progress with this activity.

STFE ALISTAIR GALL AT THE SILR WORKSHOP


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

In the Progress Reports for Q1 and Q2, it was noted that before work could start on this activity there was a pressing need to review, clarify, and if necessary, revise the legal basis, mandate and TOR for the NTFC. This will be one of the first tasks the Program will address following ODA approval.

In anticipation of the Program’s support to the NTFC, the Program recruited and appointed a NTFC Expert in June. The need to strengthen the NTFC and to “scale up the role and capacity of the Standing Agency to ensure its strength [ability] to coordinate, organize implementation in the new period of time” is a key solution stated in Announcement No.: 105/TB-VPCP. Regrettably and as described elsewhere in this report, as ODA approval has yet to be granted, it was not possible for the Program team to undertake any of the planned tasks or sub-activities and as such, it has been unable to make meaningful progress with this AWP Activity.

3.2 COMPONENT 2. STRENGTHENING NATIONAL-PROVINCIAL (VERTICAL) COORDINATION OF TRADE FACILITATION STRATEGIES AND FACILITATING IMPORT AND EXPORT OF GOODS

INTRODUCTION

The main objective of Component 2 is facilitating imported and exported goods in customs clearance by ensuring that GVN trade facilitation policies and procedures are implemented more effectively through strengthened coordination, communication and cooperation. Policies formulated by the GVN, GDVC, and other line ministries are reportedly often not uniformly implemented at the provincial level. However, a degree of provincial independence on how to implement government policies can create opportunities for provinces that benefit Vietnam as a whole, while at the same time can influence future national policies and procedures. This overall objective is for customs formalities to be simplified and harmonized in accordance with international standards and regulations and for procedures to be made more transparent. Apart from activity 2.4 implemented in the present quarter, the Program team started procedures to support the implementation of two pre-ODA activities agreed with GDVC, mentioned above, relevant to this component (i.e. Activity 2.1 and 2.6).

ACTIVITY 2.1 – E-COMMERCE FOR IMPORTED AND EXPORTED GOODS

This activity supports the CCS Department of the GDVC in developing a legal instrument (Decree) and implementation guidelines to promote the development of e-commerce trade and to provide adequate tools to control it. The new legal framework will be based on a proper risk management methodology and it will promote a close cooperation among the different involved stakeholders, private and public.

Work started on this activity in Q3 in cooperation with the GDVC with finalization of the SOW for the recruitment of one international STTA expert. Despite further meetings and discussions with the CCS Department, little progress has been achieved because due to the CCS’ focus on completing the overview (raison d’etre or justification), the draft Decree and seeking approval of the GDVC leadership to proceed. It is anticipated that the Program will review and assess the overview and draft Decree starting in August with feedback, comment and recommendations based upon international best practices and experiences. This will be followed by the provision of practical


support and assistance to organize two one-day consultative workshops for the private sector and a five-day internal workshop for GDVC officials and representatives from local customs departments and line ministries to finalize the Decree. For further details, see section 6.2 in Priorities for Programming Next Quarter.

ACTIVITY 2.2 – SELF-CERTIFICATION OF ORIGIN AND VERIFICATION OF GOODS

Based on the AWP for Year-1 [FY2019], implementation of this activity was to start in Q3. As this is not an activity that can be implemented prior to ODA approval, its implementation has been delayed to a later stage.

ACTIVITY 2.4 – COMPLIANCE MEASUREMENT IN IMPORT AND EXPORT

The organization of the proposed trade compliance measurement awareness raising workshop(s) was hindered by the lack ODA approval. Nonetheless, a series of meetings were held in April with US-CBP regional customs attaché Robert Thommen, who is based in Bangkok, Thailand. Together with the GDVC, Mr. Thommen and the Program discussed the availability and interest of CBP to cooperate in satisfying specific GDVC technical needs in this area.

After the meetings and as a pre-ODA activity, the Program formulated an overview of the previous trade compliance measurement program in Vietnam, and considered recommendations to improve its effective implementation. Unfortunately, due to personnel changes and a lack of trained resources, the RM Department had been unable to initiate any trade compliance measurement projects beyond those previously supported by CBP. The RM Department made a specific verbal request for the Program to provide further technical training, build train-the-trainers capacity and support GDVC with outreach capabilities to expand knowledge and awareness of compliance measurement amongst Customs officials and private sector stakeholders.

Before obtaining CBP agreement to provide further support and assistance to GDVC’s plans for implementing a trade compliance measurement program, GDVC was asked to provide certain descriptions and clarifications on their plans. Agreement was subsequently reached that CBP experts would visit Vietnam in September 2019 to deliver additional training on the ‘R’ programming software used for trade compliance measurement and to support further outreach or awareness activities. The USAID Trade Facilitation Program will cooperate with GDVC to organize the training and outreach or awareness events in Q4 and FY2020. For further details, see section 6.2 in Priorities for Programming Next Quarter.

ACTIVITY 2.6 – BUSINESS PROCESS ANALYSIS (BPA) IN SELECTED PROVINCES (ON RISK MANAGEMENT, SPECIALIZED INSPECTION, AND COORDINATED BORDER MANAGEMENT [WTO TFA ARTICLE 8])

This pre-ODA activity aims to support GDVC in conducting BPA to establish the baseline of border practices on risk management, Specialized Inspection and Coordinated Border Management (CBM), allowing the identification of eventual needs to carry out business process reengineering (BPR) tasks. The Program began preparations in Q3 for anticipated field trips in the targeted provinces to collect the necessary information from provincial customs and line ministries in Q4. The Program team also finalized the SOW for the recruitment of local and international STTAs.


ACTIVITY 2.7 – FURTHER DEVELOP AND PROMOTE ADVANCE RULINGS CONCEPT, PROCESSES AND PROCEDURES


ACTIVITY 2.8 – SUPPORT GVN IMPLEMENTATION OF THE ISTANBUL CONVENTION ON TEMPORARY ADMISSION OF GOODS


3.3 COMPONENT 3. STRENGTHENING THE PROVINCIAL LEVEL IMPLEMENTATION AND INTER-PROVINCIAL COORDINATION IN AT LEAST FIVE TARGETED PROVINCES

INTRODUCTION

Under Component 3, the Program will undertake capacity building activities and training for customs officials in different positions at central and provincial levels (initially within the targeted provinces) to meet the requirements of modern customs and coordinated border management, and criteria set out in the capacity framework. This will 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 Specialized Inspections.

ACTIVITY 3.3 – TRAINING CAPACITY OF VIETNAM CUSTOMS SCHOOL

To implement this activity, the Program agreed with GDVC on a framework starting with the implementation of the following pre-ODA tasks.

TASK 3.3.1 - ONLINE TRAINING (E-LEARNING) PROGRAM DEVELOPED AND APPLIED IN VIETNAM CUSTOMS

SCHOOL (VCS)

This task supports the VCS to carry out a study to determine the feasibility of setting up an e-learning system. The study will provide recommendations and a strategic plan on how the VCS can set up a modern and updated e-learning system. In Q3, the Program team together with subcontractor Bixal, organized a workshop to discuss and agree with relevant VCS officials on the scope and coverage of the feasibility study and to finalize the SOW to guide the Program’s experts. The Program anticipates to finalize the study in Q4 and utilize data collected through a pilot user test that will be conducted through a prototype E-Learning module to draft the recommendations.

ACTIVITY 3.2. - USE OF WCO E-LEARNING PROGRAM TO TRAIN VIETNAMESE CUSTOMS OFFICERS

The program trained 133 customs officials (from GDVC and 15 local customs Departments) through 4 courses organized in different localities. After the training courses, 106 officials of GDVC and local customs departments successfully obtained Certificates of Achievement from the WCO, thereby satisfying the target set by the GDVC for 2019 (In 2018, the WCO granted only 2 Certificates of Achievement to Vietnamese customs officials).


3.4 COMPONENT 4. ENHANCING THE PARTNERSHIP BETWEEN CUSTOMS AND THE PRIVATE SECTOR

INTRODUCTION

This component aims to have the private and public sectors increasingly engaged and involved in proposing policy and procedural reforms through more regular consultation and by using innovative opportunities and increased dialogue. This will require developing customs to business (C2B) partnerships with the specific objectives of: expanding the 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 reform; and contributing to trade facilitation and improving customs management efficiency.

ACTIVITY 4.5 – CONNECT WITH THE BUSINESS COMMUNITY AND ENCOURAGE THE BUSINESSES IN IMPLEMENTATION OF COMMITMENTS UNDER THE AGREEMENT (WTO TFA)

The Program intended to start implementation of this activity in Q3 immediately following ODA approval but due to the lack of approval, the Program intends to begin implementation in Q4. Notwithstanding, early indicators suggest that there is very little knowledge or awareness of the WTO TFA among enterprises and businesses, emphasizing the a pressing need to communicate the benefits to be accrued and the developments or changes expected as a result of implementation of Vietnams commitments under the TFA.

ACTIVITY 4.8 – TRADE FACILITATION RELATED COMMUNICATION, COORDINATION, AND PRIVATE SECTOR OUTREACH AT LOCAL LEVEL

The Program anticipated this activity to be closely related to Activity 4.5 above. While Activity 4.5 focuses primarily on increasing engagement and involvement of the business community or private sector with implementation of the TFA and is driven by the CCS Department of the GDVC; this activity looks more towards further development of trade facilitation mechanisms at the provincial level. This activity is a longer term priority and contributing to the role and responsibilities of the Customs Reform and Modernization Board (CRMB) within the GDVC. Without official ODA approval, implementation of this activity is delayed until a later stage.

3.5 CROSS-CUTTING ISSUES

INTRODUCTION


In the reporting period, the Program carried out several cross-cutting activities to lay the groundwork for implementation of the remaining activities under the Year-1 work plan once the Program receives ODA approval.

TASK A.1.1.1 – ODA APPROVAL

The Program team closely monitored the progress of ODA approval, directly contacting the officials in charge of each step in the process, and supporting GDVC, when possible, to promptly respond to any request for information from other GVN units to avoid any delay.

TASK A.1.4.1 – PRIVATE SECTOR ENGAGEMENT STRATEGY AND PLAN

The Program continued to refine the Private Sector Engagement Strategy and Plan to serve as a wide-ranging, innovative, and adaptable approach for engagement with the private sector on a long-term, sustainable basis. Completion of this activity has been constrained due to ad hoc and pre-ODA activities and GDVC requests, and the lack of ODA approval. The Program intends to finalize the Private Sector Engagement Strategy to closely align with the proposed planned activities of the Program through Year 2 to Year5. The current draft Private Sector Engagement Strategy contain proposals for: creating shared value (CSV) to engage businesses and promote joint investment; improving the local and regional business environments; defining public-private partnerships within the Program’s context; and ways to operationalize alignment of private sector goals with Program.

Although the strategy is still in its draft form, the Program has not been idle in engaging the private sector. Program experts continue to formally and informally consult private sector stakeholders. In Q3, Program has co-organized and participated in 6 consultative workshops specifically focused towards seeking the views and contributions of the private sector.

TASK A.1.4.4 – INVENTORY AND ANALYSIS OF SURVEYS WITH THE PRIVATE SECTOR

The Program’s Private Sector Outreach Specialist started to research and collate various surveys conducted by the GVN involving private sector stakeholders. Initial results show that these are wide-ranging and complementary but several are equally duplicative.

Recent requests from GDVC to the Program for support and assistance will create two additional surveys. To avoid duplicity with other surveys, these will focus on issues specific to Customs. The CRMB of the GDVC wish to undertake an online and paper-based survey to assess the Compliance Costs in Customs Administrative Procedures in 2019 (referred to as the Customs-APCI [Administrative Procedures Cost Index] survey). This survey is to be conducted on the same basis and along similar lines to that conducted annually by the Office of the Government but will be more focused towards assessing and measuring specific customs procedures and the performance of local customs departments. The other survey proposed by the CRMB is to measure the level of satisfaction of businesses with the administrative procedures processed through the NSW. This is similar and relative to the bi-annual survey conducted by the GDVC and the VCCI on business satisfaction with the Customs administration. Both these surveys will be carried out in Q4 or Q1 of FY 2020.

TASK A.1.5.1 – STRATEGIC COMMUNICATIONS PLAN

The Program team continued to refine the Strategic Communications Plan to create a blueprint for all communications-related activities and better reflect the evolving implementation of the various activities. Although the Communications strategy is still in draft form, the Program has determined


key messages drawn from keynote speeches at several workshops. The Program will incorporate these messages and any that emerge during implementation into the Communications Plan. Also, the Program began supporting news updates in the USAID website; and developed several media briefings for future reference.

In Q3, the Program finalized guidance on external communications for staff (to be included in the Program’s Operations Manual) and external communications for third parties (as a separate document, to be included in the guidelines for contractors, STTAs, vendors. The Program has also consolidated the contact list of individual stakeholders (GVN, private sector, international development community) and continues to update the public event trackers on weekly basis. The Program intends to utilize these resources to track the level of engagement of senior GVN officials in the Program’s activities to find key champions for change.


4. COLLABORATION AND COORDINATION

4.1 OTHER USAID PROJECTS

The Program continued to meet with other USAID projects and participate in technical events to create avenues for cooperation and avoid unnecessary overlapping. In Q3, the technical team participated to the following events:

• The COP continues to meet with the Director of the USAID LinkSME project on a monthly basis to exchange information on the progress of the two programs.

• In May, the Program’s Senior Trade Facilitation Expert (STFE) had a conference call with Dr. Timothy Buehrer, COP of the ASEAN-USAID IGNITE project (Inclusive Growth in ASEAN through Innovation, Trade and E-Commerce) based in Jakarta, Indonesia to discuss opportunities for collaboration on similar or linked activities. The Program regularly copies the ASEAN-USAID IGNITE COP on the Program’s Weekly Report to find opportunities for collaboration. Following the Weekly for 20-24 May, Dr. Buehrer contacted the Program expressing interest in planned activities to measure the time and cost for businesses using the National Single Window (NSW) in Vietnam and to assess the level of satisfaction of business and private sector stakeholders with administrative procedures using the NSW.

• In June, the COP gave a presentation at the Asia-Pacific Economic Cooperation (APEC) workshop on Vietnam’s expedited shipments organized by US-SEGA (US Support for Economic Growth in Asia). Several GDVC officials and local Customs departments participated in the workshop along with customs officials from Thailand and Japan, national and international customs experts, and international logistics firms such as. DHL, UPS and FedEx.

4.2 OTHER DONOR AND GOVERNMENT OF VIETNAM ACTIVITIES

Members of the Program’s technical team participated in the following meetings and/or attended the following events:

• The COP and the STFE introduced the main features of the Program at the Trade Counselor meeting held in April at the Delegation of the EU to Vietnam. The meeting included trade diplomats of19 EU member States. During the meeting, the COP and the STFE addressed several questions raised by the diplomats on understanding how the Program will support Vietnam in implementing the WTO Trade Facilitation Agreement.

• On 5 April 2019, members of the technical team attended a workshop on customs bond mechanisms for import-export goods organized by the GATF and GDVC in Hanoi. The workshop was attended by more than 100 representatives from GDVC, local customs departments, ministries, insurance companies and businesses. The Program learned that a one-year customs bond pilot scheme is scheduled for 2021.

• In May, the STFE met with a delegation from the WCO International Trade Center (ITC) commissioned by Switzerland’s Economic Cooperation and Development Program in Vietnam. The ITC team visited Vietnam to help design a new Trade Policy and


Promotion Project. The meeting served as a platform to exchange views on trade facilitation issues in Vietnam and identify and discuss any opportunities for cooperation in the future.

• The Program’s technical team attended a conference in May on assessing GVN initiatives to innovate Specialized Inspections for import and export led by DPM Vuong Dinh Hue, jointly organized by the Vietnam Fatherland Front (VFF), several GVN agencies and business associations. The conference, hosted by Mr. Tran Thanh Man, chairman of the VFF, was attended by around 100 department level leaders of the MOH, MARD, MOF, MOT, MOIT, GDVC, business associations and enterprises. At the conference, the Standing Committee of the VFF noted that there have been positive changes in Specialized Inspection legislation and implementation (e.g. the proportion of goods that undergo Specialized Inspection has dropped from 35% to 19.1% of total trade volume in the last three years). However, DPM Vuong Dinh Hue and the VFF Standing Committee agreed that the results of streamlining Specialized Inspection are still unsatisfactory, as measured by business satisfaction indicators on Specialized Inspection procedures and by the limited number of enterprises using the NSW.

• In May, the DCOP participated in a Customs Training session held by EuroCham and the EU-Vietnam Business Network with support of the Ho Chi Minh City customs department. The training was attended by 60 representatives of companies operating in different sectors (pharmaceutical, footwear, logistics and breweries). The training aimed to update the participants about regulations on Certificate of Origin, HS code, customs valuation and about the proposed changes of Circular 38/TT-BTC and Circular 39/TT-BTC. The DCOP took the opportunity to introduce the Program to the Chairman and the Vice Chariman of EuroCham and met with the Customs Attaché of Embassy of Belgium in Indonesia.

• During this quarter, the Program team also met the USDA International Programs Specialist, William Shields, together with US-CBP Attaché Robert Thommen, USAID COR Binh Nguyen and ACOR Katelin Maher to discuss possible assistance that USDA could provide in future agricultural-trade related activities of the Program.


6. PRIORITIES FOR PROGRAMMING NEXT QUARTER

6.1 COMPONENT 1. HARMONIZATION AND SIMPLIFICATION OF KEY RISK MANAGEMENT AND SPECIALIZED INSPECTIONS-RELATED POLICIES AT THE CENTRAL LEVEL AND STRENGTHENING THE ROLE OF THE NTFC

ACTIVITY 1.1 – NATIONAL SINGLE WINDOW AND ASEAN SINGLE WINDOW

Following ODA approval and the launch of the Trade Facilitation Program, the STFE and technical team will initiate discussions with the IT & Customs Statistics department of the GDVC to verify the continued importance and relevance of the sub-activities previously planned. Responding to a request from the Customs Reform & Modernization Board (CRMB) of the GDVC the Program intends to collaborate with the VCCI to provide technical assistance to support the GDVC in the conduct of a business satisfaction survey for the NSW. In the longer-term, the Program will enter into discussions with the GDVC on the proposed sub-activity [sub-activity 1.1.3] to develop a feasibility study for development of an application or IT system to assess the effectiveness and measures the time to process administrative procedures through the NSW. Depending on the response and strategy of the GDVC, this may be an activity that will be shifted to the AWP for FY2020.

ACTIVITY 1.2 – APPLICATION OF THE BLOCKCHAIN TECHNOLOGY FOR INFORMATION CONNECTION AND EXCHANGE IN THE NSW, ASW AND AMONG PARTNERS OUTSIDE ASEAN

The sub-activity to introduce international best practices in the application of the Blockchain technology for state management of customs was included in the AWP for FY 2019 at the specific request of the IT & Customs Statistics department of the GDVC. This sub-activity was due to start in Q4 but due to the delay in obtaining ODA approval and the priority placed on other activities by the GDVC, it is not known if the need and requirement for this sub-activity remains. The Program team will consult the IT & Customs Statistics department to establish the validity and timeliness of this sub-activity and if confirmed, steps will be taken to develop an appropriate activity plan and SOW for an international STTA expert and organization of the workshop(s) required by the GDVC. Depending on the response and the priority placed on it by the GDVC, this may be an activity that will be shifted to the AWP for FY2020.

ACTIVITY 1.3 – SPECIALIZED INSPECTION OF IMPORTS AND EXPORTS

The continued support of the Program to the GDVC’s review of legal documents for Specialized Inspection is seen as an on-going activity. However, the Program does not currently envisage undertaking any specific sub-activities in Q4. Latest indications are that the CCS department may seek further support and assistance from the Program in Q1 of FY2020. Line ministries were instructed to review legal documents on Specialized Inspection and Management in Announcement No. 105/TB-VPCP dated 23 March 2019 issued by the Office of the Government detailing the conclusions of DPM Vuong Dinh Hue following the last meeting of the NTFC in February 2019.

Although the Program has already organized and supported two 5-day workshops, the need for greater collaboration and consultation with the private sector has been highlighted and the Program’s technical team will encourage the CCS department of the GDVC to initiate and include awareness or consultative workshops along with any request for further support to the SILR process. Consideration will also be given for the need to survey government stakeholders and


business enterprises [sub-activity 1.3.3] although this may be delayed until FY 2020 due to the GVN’s propensity for similar surveys.

ACTIVITY 1.4 – ADMINISTRATION OF WTO TFA IMPLEMENTATION INCLUDING DETAILED ASSESSMENT OF THE IMPLEMENTATION OF TFA COMMITMENTS

Despite the identification and inclusion of numerous sub-activities associated with administration and implementation of the WTO TFA; due to the restrictions imposed before receiving ODA approval, the Program has yet to start collaborating with the GDVC and other line ministries on any of the agreed activities. The above-mentioned announcement by the Office of the Government in March 2019 reaffirmed Vietnam’s commitment to substantially and sufficiently implement the TFA following the roadmap committed to the WTO. The announcement also included instructions to strengthen and promote the role of the Committee 1899 [aka the NTFC] to implement the TFA and to review and assess capacity to implement the TFA to ensure Vietnam meets its commitments. The official government announcement was directly aligned to the aims and objectives of the USAID Trade Facilitation Program and the effect was to provide a clear and unequivocal mandate and justification for many of the activities proposed and planned for the Program.

The recent recruitment of the NTFC Expert means that the technical team are ready to begin collaborating and cooperating with GDVC counterparts as soon as ODA approval is granted and a plan of action is agreed with the embryonic Project Management Unit (PMU) and the IT & Customs Statistics department (being the Standing Office for the NTFC). While internal research and data gathering has already started, it is envisaged that the Program technical team will start work in Q4 on priority sub-activities 1.4.1, 1.4.2 and 1.4.3 to produce a situational assessment report and proposed solutions for effective implementation of Vietnam’s commitments to the Agreement.

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

As mentioned above, the recent announcement of the Office of the Government gave clear instructions to strengthen and promote the role of Committee 1899 (i.e. the NTFC) and to enhance coordination with line ministries during the implementation of the WTO TFA. This reaffirms the need for and validity of sub-activities 1.5.1, 1.5.2, 1.5.3, 1.5.4 and 1.5.5. The Program team will begin to collaborate and cooperate with the GDVC as soon as ODA approval is granted and once activities are agreed and prioritized with the PMU. It is envisaged that work will start on this activity in Q4 but will continue throughout FY 2020.

6.2 COMPONENT 2. STRENGTHENING NATIONAL-PROVINCIAL (VERTICAL) COORDINATION OF TRADE FACILITATION STRATEGIES AND FACILITATING IMPORT AND EXPORT OF GOODS

ACTIVITY 2.1 – E-COMMERCE FOR IMPORTED AND EXPORTED GOODS

The GVN aims to develop and deploy a scheme for management of e-commerce activities for cross-border export and import goods. This activity was specifically requested by the GDVC during the planning process for the Program’s AWP for FY2019 and DPM Hue reaffirmed the need for this in his announcement following the last meeting of the NTFC. The CCS department of the GDVC have worked independently on this for some time now and have prepared an overview containing the rationale for the proposal and a draft Decree with provisions for the management of exported, imported goods transacted through e-commerce platforms.


In Q4 the Program will support this activity through provision of international STTA expert(s) to: review and assess the overview and draft Decree; collaborate to organize two consultative workshops for the private sector in the North and South of Vietnam; and collaborate to organize a five-day internal workshop for the GDVC, local customs departments and relevant line ministries to finalize and complete the drafting process.

ACTIVITY 2.2 – SELF-CERTIFICATION OF ORIGIN AND VERIFICATION OF ORIGIN

The self-certification and verification of origin are key components of modern or new Free Trade Agreements and as such, the GDVC viewed this as an important activity in the Program’s AWP for FY2019. However, as this activity was not prioritized by the GDVC, the program technical team has not started to work in this area. Following ODA approval, the Program will seek confirmation with the GDVC as to whether or not this activity remains valid for inclusion in the AWP for FY2019 and if so, what support or technical assistance might be required in Q4 or thereafter.

ACTIVITY 2.4 – [TRADE] COMPLIANCE MEASUREMENT IN IMPORT AND EXPORT

During Q4, the Program will coordinate and organize a 3-day training event for officials from the GDVC and local customs departments on the ‘R’ programming software used by US CBP in their trade compliance measurement activities. Since 2015, USAID has been supporting the Risk Management department of the GDVC, to develop and implement compliance measurement mechanisms. In-depth and specialist training and guidance was provided by experts from the US CBP to develop and analyze compliance measurement samples, and to provide operational feedback and expertise on the compliance measurement processes.

In Q3, the Risk Management department requested the Trade Facilitation Program to provide further training and operational support so as to build capacity within core GDVC and local customs personnel and to increase awareness amongst customs of the concept and processes involved with compliance measurement. Following discussion and the provision of supporting information, the US CBP agreed to be involved and so further ‘R’ software/programming training will be provided along with developing an outreach process so as to increase awareness of the subject.

ACTIVITY 2.5 – CUSTOMS VALUATION

When planning for Program activities in FY 2019, it was agreed with the Import-Export Duty department of GDVC to include specific sub-activities focused on building and developing the enforcement capacity about customs valuation. Activities were originally scheduled to begin in Q4 and so, it is planned that immediately following ODA approval being granted, the Program technical team will seek agreement of the PMU to start work on sub-activities 2.5.1, 2.5.2 and 2.5.3 to share international experiences, undertake a gaps analysis and situational assessment while building capacity to ensure that the customs valuation information analysis mechanism is set up and effectively operated.

ACTIVITY 2.6 – BUSINESS PROCESS ANALYSIS IN SELECTED PROVINCES

The Program team, with the support of a local and an international STTA, will carry out field trips in the 6 selected provinces to complete a BPA on risk management, Specialized Inspection and coordinated border management. The Program will then work on preparing the organization of workshops attended by customs, line ministry officials and private sector representatives to discuss the findings of the BPA report and prepare recommendations to promote the simplification,


standardization and, eventually, the action plan for further business process reengineering and implementation.

ACTIVITY 2.7 – FURTHER DEVELOP AND PROMOTE ADVANCE RULINGS CONCEPT, PROCESS, AND PROCEDURES

This activity is closely related to Activity 2.5 detailed above and was originally planned to start in Q3 and continue into Q4. However, as this was not a pre-ODA activity proposed and approved by the GDVC, work has not started and its implementation is expected to be delayed until a later stage. The Program technical team will liaise with the International Trade Center (ITC) to coordinate inputs and activities as they have proposed, with support of the WCO, to undertake a diagnostic assessment of Advance Rulings in Vietnam.

Following ODA approval and if agreed and not duplicating technical assistance inputs of ITC, the Program proposes to provide both international and local STTA experts to support the GDVC to review current Advance Rulings procedures and processes; develop proposals for revision and legislative changes and opportunities for automation of the processes; conduct a training needs assessment; support introduction of new procedures and undertake an awareness campaign for the private sector including communications, publicity and workshops.

ACTIVITY 2.8 – SUPPORT INTRODUCTION OF PRE-ARRIVAL PROCESSING FOR IMPORTS

Work on this activity was originally scheduled to start in Q4 FY 2019. Following ODA approval in Q4, the Program technical team will request meetings and initiate discussions with the CCS department and the IT & Customs Statistics department of the GDVC to verify the continued validity and appropriateness of the sub-activities proposed. Depending on the priorities of the GDVC and the workload of the Trade Facilitation Program, there is a possibility that this activity will be delayed until FY2020.

ACTIVITY 2.9 – SUPPORT GVN IMPLEMENTATION OF THE ISTANBUL CONVENTION ON TEMPORARY ADMISSION OF GOODS

Work on this activity was to start in Q3 of FY2019 but as this was not prioritized by the GDVC as a pre-ODA approved activity, its implementation may be delayed until a later stage. Regardless and following ODA approval, the Program technical team will provide international expert(s) and utilize internal team resources, to cooperate with the GDVC to consult the private sector, prepare a draft Decree to guide implementation, conduct training and awareness workshops and support a pilot implementation in selected localities.

ACTIVITY 2.10 – STUDY TOUR AND LEARNING EXPERIENCE

Following a request received from GDVC, the Program will organize a working visit to the USA (Washington and New York) for 12 Government officials in Q4. The visit aims for the officials to learn from the US-CBP and its experience with the implementation of the Automated Commercial Environment (i.e. the US NSW), and to learn about customs procedures associated to e-commerce trade. In addition, the study tour will focus on US implementation selected WTO TFA and trade facilitation measures. The delegation will also visit the relevant CBP premises and facilities at an international airport and seaport. The Program will work with the GDVC to develop detailed objectives and a feasible plan for the field study. Through the study tour and learning experience, the Program will promote the capacity of the participants to recognize barriers, bottlenecks and


challenges for coordinated border management and cross-border trade facilitation, and the central role of Customs in trade facilitation.

6.3 COMPONENT 3. STRENGTHENING THE PROVINCIAL LEVEL IMPLEMENTATION AND INTER-PROVINCIAL COORDINATION IN AT LEAST FIVE TARGETED PROVINCES

ACTIVITY 3.3 – TRAINING CAPACITY OF VIETNAM CUSTOMS SCHOOL

TASK 3.3.1 - ONLINE TRAINING (E-LEARNING) PROGRAM DEVELOPED AND APPLIED IN VCS

The Program will conduct two workshops to increase the awareness of e-Learning and distribute questionnaires to GDVC officials and to the representatives of the six local provincial customs authorities to collect the necessary information for the feasibility study. The study will provide a set of recommendations on the best strategy the VCS might adopt to set up a modern and updated e-learning management system. Bixal experts will then design a prototype E-Learning module and conduct a pilot user test with selected GDVC and local customs officials. This will inform the recommendations for implementation of the E-Learning system. The Program will then consider, based on specific requests received from GDVC and VCS, to provide further support in the following fiscal years.

TASK 3.3.2. - USE OF WCO E-LEARNING PROGRAM TO TRAIN VIETNAMESE CUSTOMS OFFICERS

The Program will organize a CLiKC! Training course participated by the officials of the 20 local customs Departments not targeted by the previous CLiKC! courses. Moreover, a workshop will instruct VCS visiting trainers (i.e. officials from GDVC invited to teach at the VCS) on the use of CLiKC!, opening another opportunity for customs officials (besides that offered by the VCS) to receive information to attend the online WCO CLiKC! courses. The Program is also considering a VCS request to carry out a CLiKC! evaluation workshop, mainly focused on assessing the necessity of translate some selected CLiKC! courses in Vietnamese.

ACTIVITY 3.4 – TRAINING AND CAPACITY BUILDING FOR CUSTOMS OFFICIALS

Work on this Activity was originally scheduled to start in Q4 FY 2019. Following ODA approval, the Program technical team will request meetings with the department of Personnel to verify the continued validity and appropriateness of the tasks originally proposed. Depending on the priorities of the GDVC and the workload of the Trade Facilitation Program, there is a possibility that this could be an Activity that is delayed until FY2020.

ACTIVITY 3.5 – ENHANCING CAPACITY OF IDENTIFYING HS CODES FOR EXPORT AND IMPORT OF GOODS

The Program technical team will request meetings with the import-export duty department to verify the continued validity and appropriateness of the sub-activities proposed. Depending on the priorities of the GDVC and the workload of the Trade Facilitation Program, there is a possibility that this could be an Activity that is delayed until FY2020.

6.4 COMPONENT 4. ENHANCING THE PARTNERSHIP BETWEEN CUSTOMS AND THE PRIVATE SECTOR


ACTIVITY 4.1 – DEVELOP THE AEO PROGRAM

As highlighted in the AWP for FY2019, along with risk management and post-clearance audits, Authorized Economic Operator (AEO) schemes and related procedures constitute an integral part of customs administrations’ compliance programs and an important component of trade facilitation. The Program proposed to review the GDVC’s current AEO program with a view to expanding it to include SMEs. It was also to include a consultation exercise between the GDVC and the private sector and thereafter develop an action plan for implementation.Regrettably, due to the lack of ODA approval, the Program has not yet started work with the GDVC on this activity. Although it was scheduled to begin this work in Q4, this is expected to be a long-term and on-going activity. The Program will consult the GDVC on the current priority and importance of this activity before agreement reached on any sub-activities that could begin in Q4.

ACTIVITY 4.4 – BUSINESS SATISFACTION SURVEY ON ADMINISTRATIVE PROCEDURES OF CUSTOMS AGENCY

The [Customs] Business Satisfaction Survey was conducted nationwide (to more than 10,000 traders) by GDVC with VCCI and USAID support for the last five years. The survey seeks traders’ feedback on Vietnam’s customs performance to identify areas for improvement and provide benchmarks for performance management. The Program initially expected that the survey would be carried out in late 2019 but recent discussions with the GDVC and VCCI have confirmed that there are no plans for 2019 but that the survey may be conducted in early 2020. Due to this, the Program will not work on this activity in Q4 but will support two ad-hoc sub-activities that have been requested by the GDVC and are closely related to Activity 4.4.

Ad-hoc sub-activity - NSW Satisfaction Survey

The Office of the Government (OOG) undertakes an annual survey to establish the Administrative Procedures Costs Index (APCI) and the GDVC now plans to use the same methodology to carry out a more comprehensive and encompassing survey which will be focused on Customs procedures and offer a comparison amongst local Customs departments. The Customs Modernization & Reform Board (CRMB) of the GDVC has requested support and assistance from the Program to conduct a survey of business to establish the cost of targeted Customs procedures to identify bottlenecks and procedures ripe for reform and modernization. This was not an Activity specifically mentioned in the AWP for FY2019 but it is very closely related to the [Customs] Business Satisfaction Survey (Activity 4.3) and the Program’s objective to enhance Customs-Business consultation (Activity 4.2).

The activity will involve (i) conducting an online survey using the JotForm online application/software (this app/software is currently used by the OOG); (ii) undertaking a paper-based survey with targeted businesses shown to have undertaken the relevant Customs administrative procedures this year; (iii) follow-up interviews and focus group discussions with targeted businesses and/or associations; (iv) data analysis and preparation of Report; and (v) dissemination workshops, printing of publications and other innovative communication activities.

Ad-hoc sub-activity – Administrative Procedures Competitiveness Index (Customs-APCI)

The Customs Modernization & Reform Board (CRMB) of the GDVC has requested the Program to provide support and technical assistance to an activity that has been initiated as a result of an instruction by the Deputy Prime Minister (Announcement No. 105/TB-VPCP dated 23 March 2019). The GDVC is instructed to establish an independent monitoring, reporting and evaluation mechanism [for] processing time measurement of administrative procedures and customs clearance


and assessment of business community satisfaction during the process of handling public service on the NSW.

Following discussions with the CRMB, it was agreed that in Q4 and thereafter the Program would support the proposed activities to (i) conduct a satisfaction survey of businesses and (ii) the dissemination conferences and publications. In the longer-term, the GDVC will look to investigate the possibility of developing an automated and integrated ICT system or application to measure performance of the NSW and to produce dashboards to publicize the results [sub-activity 1.1.3].

ACTIVITY 4.5 – CONNECT WITH THE BUSINESS COMMUNITY AND ENCOURAGE THE BUSINESSES IN IMPLEMENTATION OF COMMITMENTS UNDER THE AGREEMENT (WTO TFA)

As stated in Section 3 of this report on progress with implementation of the AWP, work on this activity is to start on this activity immediately following ODA approval and establishment of the PMU. In Q4, the Senior Trade Facilitation Expert (STFE) and Regional TF Coordinator will hold meetings with the Customs Control & Supervision (CCS) Department of the GDVC to discuss the proposed tasks or sub-activities and to agree on an action plan for implementation.

ACTIVITY 4.8 – TRADE FACILITATION RELATED COMMUNICATION, COORDINATION, AND PRIVATE SECTOR OUTREACH AT LOCAL LEVEL

As noted above, this activity is closely related to Activity 4.5 but while Activity 4.5 focuses primarily on increasing engagement and involvement of the business community or private sector with implementation of the TFA and is driven by the CCS Department of the GDVC; Activity 4.8 looks more towards further development of trade facilitation mechanisms at the provincial level and is seen as a longer term priority and contributing to the role and responsibilities of the Customs Reform and Modernization Board (CRMB) within the GDVC.

As with other AWP Activities, any work to be undertaken and progress made in Q4 is dependent upon the Program receiving ODA approval from the GVN. Once approval is granted, the Program’s Regional Trade Facilitation Coordinators will (subject to approval by the GDVC) undertake visits to their respective selected provinces in order to among others, to conduct a localized stakeholder analysis exercise.

6.5 CROSS-CUTTING ISSUES

TASK A.1.4.1 – PRIVATE SECTOR ENGAGEMENT STRATEGY AND PLAN

The Private Sector (PS) Engagement Strategy and plans should be closely aligned to the proposed planned activities and sub-activities of the Program and take account of activities in the selected provinces as a key focus for the Program. As the Program did not have ODA approval this meant that the AWP for FY2019 was not fully adopted or ‘owned’ by the GDVC. However work is to continue to further develop a wide-ranging, innovative, and adaptable strategy for a long-term, sustainable basis and aligned to the aims and objectives of the Program and AWP.

TASK A.1.4.2 – PROGRAM LAUNCH

Soon after the conclusion of the ODA approval process the Program will organize, in cooperation with GDVC, a launch event in Hanoi to increase the awareness amongst GVN, Line Ministries and other public sector stakeholders of the Program aims, objectives and activities and the US


government support to Vietnam. The Program team already sent to the GDVC a draft “concept note” for the launch event seeking the timely pro-active support from the counterpart and clarifying the main aspects of the implementation plan (timing, location, format, GVN agencies and other stakeholders to be invited, number of participants and tentative agenda).

TASK A.1.4.3 – SUB-NATIONAL (PROGRAM) LAUNCH EVENTS

Following ODA approval being granted, in Q4 the Program team plans to conduct sub-national events in the central and south localities of Vietnam to introduce the Program and to confirm program priorities, expectations and to deliver key communication messages to the private sector. The launch event for the Program will mainly be focused and directed towards the GVN, line ministries, the GDVC, other government agencies and public sector stakeholders but the sub-national events will point more towards stakeholders from the private sector. Inevitably, this task is very much dependent on gaining ODA approval and reaching agreement with the PMU.

TASK A.1.4.4 – INVENTORY AND ANALYSIS OF SURVEYS WITH THE PRIVATE SECTOR

As reported in Q2 Progress Report, it was proposed that the Program would prepare an inventory of all surveys of businesses conducted at the central level and in the Program’s selected provinces and to analyze the findings and issues arising from such surveys in order to recognize overlapping or contradictory results and so aide concentration of Program resources on the key issues. The Program’s Private Sector Outreach Specialist started work on this task in Q3 and will continue in Q4 keeping both the GDVC and USAID aware of initial findings and developments.

TASK A.1.5.2 STRATEGIC COMMUNICATION PLAN

Work is to continue to finalize the Communications Strategy and implement the outreach plan, targeting key media contacts for publicizing selected events after the Program ODA approval. The Communication Specialist will work on the press releases and media interviews for the upcoming launch event in Hanoi and sub national events, including the design of one pager online newsletter to targeted audience focusing on guiding policy reform aiming at creating awareness about Program’s priorities. Moreover, the Specialist will organize all the relevant communication tasks assisting the implementation of the various activities (e.g. ensuring the branding and marking compliance across the board to activities specific communications materials). Among others, the Program will develop concepts and tools to raise the awareness about the Customs-APCI/NSW surveys and promote the communication of the survey results once they are completed.


7. PROGRESS REPORT ON INDICATORS In this quarter, the M&E specialist worked with the COP and Key Experts of the Program to estimate targets for indicators in year 1 and year 2. The estimated targets have been updated in the AMELP. Being a living document, the AMELP will be updated once after the annual work-plan year 2 is available, thus targets for indicator might be updated as well. To date, in addition to eight context indicators, the AMELP includes 16 performance indicators (11 outcome indicators + five output indicators).

7.1 ACTIVITY MONITORING, EVALUATION AND LEARNING

One internal learning session was prepared in late June and conducted in early July under facilitation of Home Office (HO) personnel, the COP and with participation of all technical staff. The learning session was implemented using the CLA toolkit, and provided technical staff with better understanding of CLA, learning process, and M&E updates.

1 | quarterly report april – june 2019 usaid

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