A risk-based management approach helps customs authorities detect illegal trade by identifying potential fraud based on an analysis of past patterns of some products or trading companies. This helps to minimize fraud and expedite customs clearance. Since Vietnam’s Ministry of Finance (MOF) is drafting a first-ever circular that regulates customs risk management, last week the USAID Trade Facilitation Program and the General Department of Vietnam Customs organized four consultative workshops in Hanoi and Ho Chi Minh City to collect ideas and comments that will contribute to this important circular. A wide variety of private and public sector stakeholders attended the workshops where participants proposed a mechanism for sharing business information among customs and other ministries; upgrading risk management software; decentralizing tasks among central and local customs; and assigning local customs responsibility to collect risk management information.

So What? The new Risk Management Circular will improve Vietnam’s risk-based approach, increase transparency of Custom legal frameworks, reduce clearance times, and create a more predictable trade and investment climate.