Decentralize to standardize management, but not break the export chain

Courage to act: Withdraw authority to standardize

This afternoon, April 21, the Ministry of Industry and Trade issued a decision to revoke the right to issue Certificates of Origin (C/O) form CNM and REX code from VCCI. This action is to promptly implement the direction of Prime Minister Pham Minh Chinh and at the same time send a strong policy signal: Vietnam is always actively perfecting the trade machine, not only to operate more smoothly, but also to increase competitiveness, national prestige and the ability to respond to new "standard traps" of global trade.

The Ministry of Industry and Trade withdraws the right to issue CO-REX from VCCI, standardizes management, maintains smooth export flow thanks to soft conversion mechanism, and timely supports businesses. Illustrative photo

Decision No. 1103/QD-BCT issued by the Ministry of Industry and Trade should be understood as a correction of the operating mechanism of the origin issuance system. In recent times, some signs of lack of standardization and lack of post-audit in the issuance of CO forms CNM and REX codes have created policy loopholes, especially in meeting the requirements within the framework of free trade agreements such as EVFTA.

This is a “zigzag” but necessary step in the process of professionalizing origin management, similar to the way Japan reformed JETRO to tighten the process of granting duty-free codes in the 90s. Vietnam needs to establish a “trust ecosystem” in trade, where not only goods but also the documentation system must have transparent origins.

Origin is the gateway to value chains and national identity

Certificates of Origin (CO) and REX codes are not simply customs procedures. In the global trade ecosystem, they are “trade passports” and ensure that products bearing Vietnamese brands are not only made in Vietnam, but also comply with the rules of origin in FTAs.

If Vietnamese goods lack standards, they may be undervalued by partners or even subject to close scrutiny. At that time, Vietnamese goods will not only lose tariff preferences but also damage the country’s reputation. A returned shipment can cause tens of thousands of dollars in damage, but the loss of trust in the EU or Japanese markets cannot be valued in money.

Therefore, the Ministry of Industry and Trade's withdrawal of the right to issue CO and REX from a non-state organization such as VCCI to hand over to the unified management system is a necessary step.

Because, if we compare this new policy with the current practice through the statistical table below, we will clearly see the necessity and benefits it brings.

Comparison table: VCCI and Ministry of Industry and Trade in granting CO-REX

Flexible policy: Not rigid, not leaving businesses behind

The point is not the “withdrawal of authority”, but the way the Ministry of Industry and Trade implemented this decision. Instead of slamming the door on businesses, the Ministry proactively set up a soft transition period. Businesses using the REX code issued by VCCI are still guided to switch to the new system, avoiding disruption of the supply chain.

Talking to reporters of the Industry and Trade Newspaper, Mr. Nguyen Anh Son, Director of the Import-Export Department, said: Similar to the previous time when the apparatus was converted to a new model, this time the Import-Export Department proactively had solutions to help businesses convert and coordinate the appropriate handover of management work so that businesses would not be affected or have their export orders disrupted.

Mr. Nguyen Anh Son affirmed: " We will guide businesses to fully convert and not let import and export be disrupted. We hope the press and media will clearly state this spirit so that businesses can feel secure in implementing it ."

The flexibility in implementing this policy reflects a modern management philosophy: Reform is not elimination, but transformation with a roadmap. The Ministry of Industry and Trade has acted methodically this time.

At a time when developed markets are tightening regulations on origin, traceability, sustainability and trade transparency, a policy decision like that of the Ministry of Industry and Trade is equivalent to a “passport” for Vietnam to continue to stand in the global value chain.

Thomas Friedman once said: "The world is flat, but the rules of the game are rougher than ever." The "flat world" viewpoint is clearly expressed in the work of the same name by author Thomas Friedman - a journalist for the New York Times and a famous American economist .

Until now, the debate about the “flat world ” is still very fierce when many experts and scholars believe that the world is not flat despite social progress. And no matter what, Vietnam always shows itself to be a responsible country not only for its own businesses but also for the international rules of the game.

The lesson from this incident is that management must be strict, but policy implementation must have vision and empathy. Businesses need to be transparent, but the State also needs to act responsibly. If Vietnam wants to become a regional manufacturing, supply chain and logistics center, each CO seal must be as precise as a semiconductor chip.

Eagle

Source: https://congthuong.vn/chuyen-quyen-de-chuan-hoa-quan-ly-nhung-khong-lam-gay-mach-xuat-khau-384238.html