Vietnam has made strides in implementing electronic customs, paperless transactions, and digital trade, enabling businesses to adapt to the modern business environment where speed and accuracy are paramount.
Global context on paperless supply chains
In recent years, paperless supply chains have become a top priority for global businesses. Studies show that replacing paper-based systems offers benefits such as faster trade, reduced supply chain congestion, and lower fixed costs. Paperless trade can reduce international trade costs by billions of dollars in the APEC region. Cost savings range from 15% to 45%, depending on the current stage of paperless trade initiatives in each economy.
Goods are increasingly being produced in multiple geographic locations rather than just one legal entity, cutting across the trade of different economies, regions, and continents. According to an OECD report, removing barriers to paperless trade can have a significant impact on perishable goods. Research by van Tongeren and Baragwanath (2021) indicates that export values increased significantly after the implementation of electronic SPS certification.
The current state of paperless supply chain development in Vietnam
According to the 2021 United Nations Survey on Digital and Sustainable Trade, Vietnam has shown improvements over time in cross-border paperless trade (CBPT) and paperless trade in general. In terms of CBPT, Vietnam scores higher than the Asia-Pacific region, although there is still room for improvement to catch up with some Southeast Asian countries.
From a technical perspective, Vietnam has established a paperless trade system at the national level, with a dedicated managing authority (the National Trade Facilitation Committee – NTFC) chaired by a Deputy Prime Minister and coordinated by the General Department of Customs. Electronic customs were officially implemented in 2012, and harmonization and standardization in Vietnam are based on international standards and guidelines for developing data models.
Vietnam’s National Single Window (https://vnsw.gov.vn) serves as the country’s sole connection point for any cross-border data exchange with other trading partners. The National Single Window, operated by the General Department of Customs, acts as an intermediary for administrative procedures. The Vietnamese government has continuously taken action to improve the implementation of the National Single Window mechanism and the ASEAN Single Window.
Vietnam has also issued legal regulations on electronic transactions and electronic evidence, governing the quality of information exchanged in the paperless trade system and fulfilling commitments made in free trade agreements (FTAs), mainly related to electronic commerce, paperless transactions, and trade facilitation.
Vietnam’s strategy and goals by 2025
Vietnam has set ambitious goals for the development of its digital economy and e-commerce, including paperless supply chains. According to the National Strategy for the Development of Digital Economy and Digital Society (by 2025, with a vision towards 2030) and the National Green Growth Strategy for the period of 2021-2030 (with a vision towards 2050), Vietnam is striving for a dual transition towards digitalization and sustainability.
By 2025, Vietnam aims to achieve several important milestones, including a 25% contribution of the digital economy to GDP and ensuring that green credit accounts for 10% of total outstanding loans. The local digital economy is expected to reach a scale of 52 billion USD by 2025. The Ministry of Industry and Trade forecasts that total revenue in the e-commerce sector is expected to reach 35 billion USD by 2025. The Ministry also targets increasing the proportion of the population participating in online shopping and cashless payments to 55% and 50%, respectively.
In the field of cross-border paperless trade, Vietnam has developed a roadmap by 2025 to improve technical and legal readiness. To enhance technical readiness for CBPT, Vietnam needs to update the membership and work plan for the NTFC for the 2022-2025 period. Vietnam should build a centralized and intelligently integrated customs information technology system to support cross-border paperless trade, based on VNACCS/VCIS/VASSCM, incorporating new technologies related to big data, artificial intelligence, IoT, and blockchain.
At the same time, efforts are needed to improve the IT infrastructure and security related to paperless trade. There should also be capacity-building programs on international frameworks and agreements, such as the Cooperation and Capacity Building Chapter of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA).
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Benefits of paperless supply chains for Vietnamese businesses
The transition to paperless supply chains brings significant advantages to Vietnamese enterprises, especially in the context of increasing global competition.
Increased speed and responsiveness: Paperless supply chains eliminate delays caused by the movement of paper documents. Paperless processes move at the speed of data, automatically accelerating the supply chain. Businesses can respond more quickly to customer demands and provide up-to-date information to all members of the chain instantly. According to a WTO report, the use of electronic transactions in trade can reduce the average time for exports by 24% and reduce costs related to border procedures by about 8.2% in the ASEAN region.
Enhanced security and compliance: Paperless processes automatically address data integrity issues, relieving businesses from worrying about misrepresented documents that could lead to financial or regulatory compliance problems. Paperless systems can enforce requirements for electronic signatures and employee certifications when completing procedural steps. This improves transparency and minimizes legal risks. According to a United Nations survey, Vietnam has made significant improvements in adopting paperless trade, with a score of 77.78% in paperless trade readiness in 2023.
Improved productivity and reduced costs: With time saved as employees no longer need to store paper documents, businesses can assign them to more strategic projects or enhance customer intimacy through improved personal attention. Transactions proceed without any unnecessary stops along the way, ensuring that the supply chain moves at a consistent pace. In Vietnam, the application of Industry 4.0 technology in logistics has reduced average costs by 23% and shortened order processing time by 35% compared to traditional methods.
Lessons from other countries
Many countries have achieved significant success in developing paperless supply chains, offering valuable insights for Vietnam to accelerate its digital transformation.
South Korea is a pioneer in this field with its UNIPASS and uTradeHub systems, which fully digitize customs and international trade procedures. This enables businesses, especially small and medium-sized enterprises, to easily access international markets without encountering paperwork obstacles.
In the Pacific region, Vanuatu and Timor-Leste have demonstrated that technology can significantly reduce processing times and environmental impacts. In Vanuatu, the implementation of the Single Electronic Window reduced the time for issuing biosecurity certificates from 6 days to 10 minutes, while also cutting down 95% of paperwork and 86% of physical trips. Similarly, Timor-Leste deployed the TileSW (Timor-Leste Single Window) system to connect government agencies, reducing clearance times and transaction costs.
Bangladesh and Cambodia focus on automating and digitizing data to improve trade efficiency. Bangladesh is working to enhance its electronic customs system and adjust regulations on electronic transactions to facilitate paperless trade. Meanwhile, Cambodia developed an electronic data interface between customs and postal services, accelerating the processing of e-commerce transactions for small and medium-sized enterprises.
The transition to paperless supply chains is becoming the new standard, enabling businesses to optimize operations, reduce costs, and increase global connectivity. Vietnam has made significant progress in digitalization, from electronic customs to paperless trade, laying a solid foundation for change. As data replaces paper, speed and transparency are enhanced, bringing practical benefits to businesses and the economy. This transformation is a trend and a driving force to improve competitiveness in international trade.
[1] https://www.apec.org/publications/publication-detail?pub_id=1356
[2] https://www.apec.org/publications/publication-detail?pub_id=1356
[3] https://www.apec.org/publications/publication-detail?pub_id=1356
[4] https://www.unescap.org/resources/cross-border-paperless-trade-readiness-assessment-viet-nam
[5] https://www.unescap.org/resources/cross-border-paperless-trade-readiness-assessment-viet-nam
[6] https://www.unescap.org/resources/cross-border-paperless-trade-readiness-assessment-viet-nam
[7] https://www.vietnam-briefing.com/news/vietnams-economic-outlook-2025-push-digitalization-sustainability.html
[8] https://www.vietnam-briefing.com/news/vietnams-economic-outlook-2025-push-digitalization-sustainability.html
[9] https://www.unescap.org/resources/cross-border-paperless-trade-readiness-assessment-viet-nam
[10] https://www.unescap.org/resources/cross-border-paperless-trade-readiness-assessment-viet-nam
[11] https://trungtamwto.vn/file/23044/nes-vietnam-trade-facilitation-cs-ta-pdf.pdf
[12] https://www.un.org/development/desa/pis/wp-content/uploads/sites/70/2022/12/Economy-profile-Viet-Nam.pdf
[13] https://logistics.gov.vn/logistics-service-businesses-vietnam-transform-digitally-reduce-costs
[14] https://repositorio.cepal.org/bitstream/handle/11362/47134/S2019034_en.pdf
[15] https://trade4devnews.enhancedif.org/en/op-ed/how-digitalization-can-drive-sustainable-supply-chains-least-developed-countries
[16] https://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=1299
[17] https://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=2041
[18] https://www.adb.org/publications/update-cross-border-paperless-trade-bangladesh
[19] https://trade4devnews.enhancedif.org/en/op-ed/how-digitalization-can-drive-sustainable-supply-chains-least-developed-countries
– 12:00 16/03/2025
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