Vietnam Country Profile

Customs Administration

Business Corruption

According to the World Bank Vietnam Development Report 2006, companies rank the Customs Department as one of the most corrupt institutions in the country. Global Integrity 2006 reports that customs and excise regulations are not always enforced uniformly or without discrimination. The unpredictability of customs administration often leads to corruption, adding to the number of corrupt relationships between customs officers and companies and causing great losses to the Vietnamese state. Companies take advantage of the export-promoting policy for agricultural and forestry products and make false vouchers about purchasing, processing and transporting export commodities. Customs officers are subsequently offered repayment of the Value Added Tax (VAT) in return for covering up the scam.

Political Corruption

The Customs Department is reportedly notoriously corrupt and customs officials have been convicted for helping organised syndicates in their smuggling activities. The World Bank, citing the customs authority as a hotspot for corruption in Vietnam, is sponsoring a customs reform project to modernise customs procedures in accordance with international best practices.

Frequency

The World Bank & IFC: Doing Business 2010:
- A standard export shipment of goods requires 6 documents and takes 22 days at a cost of USD 756 per container.

- A standard import shipment of goods requires 8 documents and takes 21 days at a cost of USD 940 per container.

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business executives give the efficiency of customs procedures (formalities regulating the entry and exit of merchandise) in Vietnam a score of 3.6 on a 7-point scale (1 being 'extremely inefficient' and 7 'extremely efficient').

The World Bank & IFC: Enterprise Surveys 2009:
- Over 18% of companies report that they expect to give gifts in order to obtain an import licence.