A myriad of technological fields including Artificial Intelligence (AI), Cloud Computing, Internet of Things (IoT), Blockchain, and 5G technology have brought about many substantial benefits in digitalization. The swift progression of these digital technologies is fundamentally changing the way that governments, enterprises, and citizens across global nations connect with one another. Acknowledging the pivotal role of digital transformation, numerous countries have imposed comprehensive strategies and initiatives concerning digital adoption. It could be seen in some cases in the United Kingdom, the Netherlands, Australia, Denmark, Israel, Mexico, Singapore, Thailand, and Uruguay. The digital transformation varies among countries significantly, depending on the socioeconomic development strategies pursued by each respective country. In Vietnam, the Customs Department stands as a pioneer among state entities undertaking digital transformation. In 2023, for the sixth consecutive year, the General Department of Customs has topped the list of government agencies in the Administrative Reform Index, contributing to creating an equal, transparent, and open business environment, reducing costs for businesses, enhancing trade facilitation and the countrys competitiveness (Ministry of Finance, 2023). This result was achieved thanks to the application of information technology, and digital transformation in all management aspects of the customs sector from 2014 to the present. Presently, digital transformation permeates all aspects of the Customs domain. This encompasses employing Information and Communication Technology (ICT) for office streamlining, utilizing the Internet for information sharing, and adopting automated clearance systems for declaration submissions, risk management, validation, and processing, culminating in approvals issuance. Technology has fundamentally revolutionized the modus operandi of both Customs and governmental functionalities.
MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY -o0o MASTER THESIS DIGITAL TRANSFORMATION IN THE VIETNAM’S CUSTOM: A CASE STUDY OF HANOI CUSTOM DEPARTMENT MAJOR: INTERNATIONAL ECONOMICS FULL NAME: MAI THI NGOC ANH Ha Noi - 2023 MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY -o0o MASTER THESIS DIGITAL TRANSFORMATION IN THE VIETNAM’S CUSTOM: A CASE STUDY OF HANOI CUSTOM DEPARTMENT Major: International Economics Specialization: Master of Research in International Economics Code: 821418 Full name: Mai Thi Ngoc Anh Supervisor: Ly Hoang Phu, PhD Ha Noi - 2023 i DECLARATION OF ORIGINALITY I hereby declare that the thesis entitled 'Digital Transformation in the Vietnam's Customs: A Case Study of Ha Noi Customs Department' is the outcome of my independent academic study and research endeavors The data presented in this thesis are truthful and the research findings articulated herein have not been previously published in any other works or attributed to anyone else, except for the sources fully referenced in the thesis I, the author, take full responsibility for the integrity of this declaration Hanoi, September 2023 Mai Thi Ngoc Anh ii ACKNOWLEDGMENTS Foremost, I would like to express my great gratitude to my supervisor- Dr Lý Hoàng Phú for his dedicated guidance and wholehearted support throughout the course of my thesis His invaluable encouragement has been pivotal in enabling me to complete the full master’s thesis My sincere thanks go to the Professors, Lecturers at the Postgraduate School of the Foreign Trade University for their assistance in both academic pursuits and research endeavors, facilitating my knowledge enhancement, providing procedural guidance, and creating favorable conditions for the entirety of my thesis journey I extend my genuine gratitude to other faculty members of the Faculty of International Economics, including Assoc Prof Hoang Xuan Binh, Assoc Prof Tu Thuy Anh, Assoc Prof Dr Nguyen Thi Tuong Anh, Dr Luong Thi Ngoc Oanh, Dr Vu Thi Phuong Mai, and Dr Dinh Thi Thanh Binh Their mentorship and inspiration have ignited and fueled my enthusiasm for the field of economics Last but not least, I would like to express my sincere apperciation to my family, friends, and the collective of my MIE-4B class, who have provided both material and moral support, encouraged my endeavors, and shared responsibilities, thereby affording me optimal conditions for research iii Table of contentS DECLARATION OF ORIGINALITY i ACKNOWLEDGMENTS .ii LIST OF ABBREVIATIONS vi LIST OF TABLES vii LIST OF FIGURES viii SUMMARY OF THESIS RESEARCH RESULTS ix INTRODUCTION CHAPTER THEORETICAL FRAMEWORK FOR DIGITAL TRANSFORMATION IN CUSTOM SECTOR .11 1.1 Overview of digital transformation .11 1.1.1 Concept of digital transformation 11 1.1.2 Phases in the Digital Transformation Journey of Organizations, enterprises .14 1.1.3 The trend of “Digital transformation” 16 1.2 Factors influence “Digital transformation” 21 1.2.1 Technology 21 1.2.2 Legal framework 22 1.2.3 Infrastructure .22 1.2.4 Human resources 24 1.2.5 Scientific research .24 1.3 Overview of digital transformation in custom sector 25 1.3.1 Concept of digital transformation in custom sector .25 1.3.2 The benefits of digital transformation for the Customs sector .27 1.4 Experience in Digital Transformation Initiatives within the International Customs Sphere .30 1.4.1 Singapore .30 1.4.2 Korea 32 iv 1.4.3 Dubai 34 1.4.4 Lessons Drawn for Vietnam 35 CHAPTER 2: ACTUAL SITUATION OF DIGITAL TRANSFORMATION IN HA NOI CUSTOMS DEPARTMENT 37 2.1 Introduction about HCD 37 2.1.1 Historical Formation and Development .37 2.1.2 Hanoi Customs Department structures 39 2.1.3 Overview of digital transformation progress at the Hanoi Customs Department (HCD) .41 2.2 Actual situation of digital transformation in HCD 46 2.2.1 Objectives of Digital Transformation in HCD .46 2.2.2 Implementation of e-customs declaration 49 2.2.3 Implementation of Risk Management 55 2.2.4 Implementation of National Single Window System and the Automated System for Customs Management 62 2.3 Evaluating Achievements and Challenges 65 2.3.1 Achievements .65 2.3.2 Challenges 71 CHAPTER 3: SOLUTIONS AND RECOMMENDATIONS TO ENHANCE DIGITAL TRANSFORMATION IN HA NOI CUSTOMS DEPARTMENT .76 3.1 Analysis of Opportunities and Challenges in the Digital Transformation Process in HCD .76 3.1.1 Opportunities .76 3.1.2 Challenges 76 3.2 Implementing Enhanced Solutions for Digital Transformation at HCD 78 3.2.1 Enhancing IT Infrastructure Quality, Database Framework, and IT Applications 78 v 3.2.2 The Enhancement of the Legal and Procedural Framework in Adoption of Digital Transformation .81 3.2.3 Adoption of the National Single Window Mechanism, ASEAN Single Window Mechanism, Execution of Administrative Procedures on the Online Public Service Portal of the Customs Authority 82 3.2.4 The Enhancement of Awareness Campaigns, Digital Skills, and Customs-Business Partnerships 83 3.2.5 The Improvement in the Quality of Human Resources for Digital Transformation and Digital Customs 84 3.2.6 Proposed Organizational Model 85 3.3 Recommendations to the GDVC 88 3.3.1 Establishing a Cultural Environment in line with the Digital Transformation Requirements of the Customs Sector 88 3.3.2 Ensuring Information Security 88 3.3.3 Development and Implementation of the Initiative for Constructing and Advancing Information Technology Infrastructure with a Focus on Serving Digital Transformation and Implementing the National Single Window Mechanism and ASEAN Single Window Mechanism 89 3.3.4 The enhancement in the provision of online public services for citizens and businesses .90 3.3.5 Support for the Digital Transformation of Businesses and Relevant Entities to Ensure Alignment with the Customs Digitalization Process 91 3.3.6 Digitization of Directive and Operational Management Activities .92 CONCLUSION 94 REFERENCES 96 vi LIST OF ABBREVIATIONS DT Digital transformation OECD Organisation of Economic Co-operation and Development HCD Ha Noi Custom Department GDVC General Department of Vietnam Customs ICT Information and communication technology NSW National Single Window ASW ASEAN Single Window WCO World Customs Organization KCS Korea Customs Service VNACCS Vietnam Automated Cargo And Port Consolidated System VCIS Vietnam Customs Intelligence Information System VASSCM Vietnam Automated System for Customs Management VCCI Vietnam Chamber of Commerce and Industry MIC Ministry of Information and Communication vii LIST OF TABLES Table 1.1 Phases of Digital transformation in Organizations, businesses .14 Table 2.1 Brief overview of Customs Digitalisation from 1994 to 2022 40 Table 2.2 Number of declaration sheets in HCD from 2014 to 2022 52