Strengthening supply chains through trade promotions and customs reform

Strengthening supply chains through trade promotions and customs reform

The Vietnam Trade Promotion Agency (VIETRADE) is focusing on building safe and sustainable supply chains for enterprises in the new geopolitical context.

Bui Quang Hung, deputy general director of VIETRADE

Speaking at a meeting on December 23, Bui Quang Hung, deputy general director of VIETRADE, said that the global economy and trade are undergoing profound, complex, and structural changes. Strategic competition among major economies continues to intensify, prolonged conflicts, and rising trade protectionism, supply chain fragmentation, and tighter standards on the environment, labour, and traceability are hitting the circulation of goods.

For Vietnam, a highly open economy with total import-export turnover several times larger than GDP, the effects of the new geopolitical context have become increasingly evident. Vietnamese enterprises are facing challenges such as dependence on a limited number of markets and sources of raw materials, risks of trade remedies and origin fraud, and mounting pressure to meet increasingly intense standards imposed by major markets on environmental protection, emissions, social responsibility, and sustainable development.

Hung said that viewed from another perspective, the global trend towards restructuring and diversifying supply chains is also opening up important opportunities for Vietnam. "Many multinational corporations and importers are seeking new partners and safe, stable production locations capable of meeting high standards and making long-term commitments. This presents an opportunity for Vietnamese enterprises to expand markets and gradually move deeper into regional and global value chains, increase value, and enhance their position," he said.

In this context, trade promotion plays a particularly important role, extending beyond support for market and partner searches to become a strategic instrument for shaping and consolidating safe and sustainable supply chains.

"Modern trade promotion needs to be closely linked with the timely provision of market information, early risk warnings, and support for enterprises in understanding requirements related to standards, origin, and sustainability. Moreover, it should foster stronger linkages between domestic enterprises and reputable international buyers, distributors, and supply chains," he added.

Hung said as the focal agency for trade promotion, VIETRADE identifies its core mission as accompanying enterprises in adapting to the new context.

"Through organising supply chain and sector-based trade connectivity programmes in key markets, supporting enterprises' participation in specialised trade fairs and exhibitions linked to supply chains, promoting digital transformation in trade promotion, and strengthening cooperation with international partners and industry associations to share information, experience and best practices on sustainable supply chain development, VIETRADE aims to help enterprises enhance resilience and long-term competitiveness," he said.

Bui Thi Minh Hai from the Customs Department

From the perspective of state management in customs, Bui Thi Minh Hai from the Customs Department, noted, "Trade facilitation and customs procedure reform are among the key pillars supporting enterprises' more effective participation in global supply chains. The Customs Department's reform priorities in 2025 focused on three main areas: internal reform, institutional reform, and reform of customs processes and procedures."

These include cutting and simplifying administrative procedures, and accelerating the implementation of electronic and digital customs. Many legislation amendments aim to support science and technology development, innovation, and digital transformation.

Hai recommended, "Importers and exporters should adjust internal management processes in line with electronic and digital customs procedures, standardise data, records, and documentation related to import-export goods, enhance legal compliance capacity, internal governance and risk management, and invest in upgrading IT infrastructure to enable effective data connectivity with customs authorities."

Another notable topic discussed at the workshop was “trade zoning”, which experts and businesses viewed not merely as a shift in export markets but as a fundamental change in market approach. Trade zoning includes three layers: geographical diversification, moving from dependence on one or two markets to a multi-market approach; distribution channel diversification, shifting from focusing on intermediaries to multidimensional distribution platforms; and value upgrading, transitioning from exporting raw goods to products with clear stories, traceability and branding.

Analysing the reality that Vietnamese products are often high quality but low-priced, while many foreign products command higher prices, Nguyen Van Tho, chairman of MFC Global, attributed this to Vietnamese goods being sold largely at raw-material prices, without brand ownership, control over distribution channels or access to consumer data. In contrast, foreign products are sold based on brand value, compelling product stories, well-controlled distribution systems, and direct access to consumers.

"In this context, multidimensional e-commerce platforms can serve as effective tools to help small- and medium-sized enterprises and cooperatives gradually reach consumers directly, both domestically and internationally, better control product value, and expand market space," he said.

“Trade zoning is a necessary step for Vietnamese enterprises to survive and enhance their position in the global supply chain. When Vietnamese products gain control over markets, their value will be recognised in line with their true quality,” Tho said.

VIR