How to Take Advantage of Trade Facilitation in Vietnam: A Case Study of Vietnam's Logistics Firms

Inspired by the theme of the World Customs Organization and its conclusion that Trade facilitation initiatives and intergovernmental schemes of customs community have been providing logistics enterprises with many opportunities to join effectively and profitably in the integrated supply chains all over the world', this analysis focuses on Vietnam Customs creation of Authorized Economic Operator (AEO) status. It aims to enhance global trade security and foster business competitiveness, promoting greater success in international trade and business. However, Vietnam's logistics companies cannot readily benefit from the AEO program because they cannot meet the AEO criteria of high exports and imports volume (for Vietnamese traders) as well as a huge number of customs declarations (for Vietnamese customs brokers). Obviously, no Vietnamese logistics company has been granted AEO status since the beginning of AEO program. Shining a light on this, we can explore the reality of why Vietnamese logistics companies really have not benefitted from the current AEO program.