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(2021-02) DRAFT PCP - Vietnam Origin Certification System Establishment Consult Project
(2021-02) DRAFT PCP - Vietnam Origin Certification System Establishment Consult Project
July 2021
TABLE OF CONTENTS
I. Project Overview..........................................................................................3
Ⅱ. Project Details.................................................................................................4
A. Project Background....................................................................................................4
B. Expected Outcome......................................................................................................5
C. Output..........................................................................................................................6
Ⅲ. Project Preparation.....................................................................................10
A. Participating Organizations.....................................................................................10
B. Task Allocation..........................................................................................................12
C. Implementation Plan................................................................................................13
D. Logical Framework...................................................................................................14
I. Project Overview
1. In the Korean-Vietnam FTA, which came into effect on December 20, 2015, Article
13.1 (Basic Principles) of Chapter 13 (Economic Cooperation) stipulates,
“Recognizing the importance of economic cooperation between the Parties, the
Parties shall promote cooperation in areas of mutual interest, taking into account the
different levels of development and capacity of the Parties.”
2. As the trade transactions between the two countries increased, the first Joint
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Committee requested cooperation to improve Vietnam’s customs capacity building in
December 2016. Moreover, as the need for resolving trade difficulties for Korean
companies entering the Vietnamese market increases, there was an agreement to
promote economic cooperation between the two countries based on the Economic
Cooperation of Korea-Vietnam FTA and Implementing Arrangement.
3. At the Korea-Vietnam FTA Economic Cooperation Committee Meeting in
November 2020, the two countries officially selected “Vietnam’s improvement
project on FTA origin management system” as a new project through consulting and
sharing experiences of Korea’s development and operation of the FTA origin
management system.
4. This project is part of the Economic Cooperation Work Program based on the above
agreements and requests (A) to conduct a feasibility study for the establishment of an
FTA origin management system in Vietnam, (B) to carry out legal, IT technology,
and infrastructure environment consulting related to FTA origin certification in
Vietnam, and (C) to hold a final report briefing session of the corresponding
outcomes. Ultimately, this will be implemented to increase the trade volume between
the two nations and encourage FTA utilization.
Ⅱ. Project Details
A. Project Background
1. Vietnam has actively participated in several FTAs with its major trading partners,
either by Vietnam alone or jointly with the ASEAN member states, based on ATIGA.
Following CPTPP effective in 2019 and EU-Vietnam FTA effective in 2020, Vietnam
is continuously pursuing a leap forward as a global production base by utilizing the
FTAs.
2. The FTA utilization environment between Korea and Vietnam differs in various
aspects. In particular, differences in the subject accountable for FTA origin
management and its work process and the method of FTA origin certification are
considered the main factors affecting the use of FTAs. In the case of Korea, country
of origin is managed by using an FTA origin management system, and C/O is also
electronically applied and issued. On the other hand, in Vietnam, company
employees manually manage country of origin, and the application of C/Os are
electronically received then collected by visiting the issuing agency after the
application.
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3. Following the survey on FTA utilization by the local companies and collecting
opinions of various corporate practitioners from “Project on Enhancement of FTA
Utilization Capacity under the 2017 Korea-Vietnam Economic Cooperation Work
Program”, it was revealed the FTA origin certification system is not computerized in
Vietnam, which causes a great deal of inconvenience. Accordingly, this project aims
to provide the establishment (draft) of an FTA origin management system for
efficient management. By analyzing the FTA origin certification system, it attempts
to identify the areas that have been computerized and have not yet been
computerized. Then it derives further suggestions for how to computerize the system.
4. Vietnam’s FTA utilization environment has many unique features that are different
from those of Korea. In order to develop an FTA origin management system in
Vietnam, it is a prerequisite to understanding such environment and local business
practitioners to substantially improve the origin management process and increase
the FTA utilization rate.
5. Through the knowledge and information gained from this project, the understanding
of Vietnam’s FTA utilization environment can be improved. Furthermore, by
developing a Vietnam-specific FTA origin management system, it will provide the
foundation for the local business practitioners to use the FTA legally and efficiently.
B. Expected Outcome
1. Derivation of FTA Origin Management System Design (Draft) suitable for Vietnam’s
Legal and Working Environment
- By introducing an FTA Origin Management System suitable for the local working
environment, the local companies will be able to reduce risks related FTAs.
Moreover, such systemic management will increase the convenience of preparing
application documents and storing documents. Enhancing the reliability of origin
certification will ultimately contribute to the legitimate and efficient use of the FTA.
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3. Derivation of Plan for Linking FTA Origin Management System and FTA Origin
Certification System
- Through an AS-IS analysis of the functions of the current FTA origin management
system and origin certification system, it aims to present a model for establishing an
FTA origin management system suitable for the local FTA and customs clearance
environment in Vietnam. In order to derive an efficient operation plan for both
systems, it is intended to collect opinions from the local companies and stakeholders
and provide a connected plan for both systems.
- Through the Economic Cooperation Work Program between the two countries, it
aims to provide a technical design(draft) for an FTA origin management system and
introduce a pilot version of the system to the Vietnamese government and companies,
thereby laying the groundwork for the spread of the FTA origin management system.
By doing so, it is expected to contribute to expanding FTA utilization and increasing
trade benefits for both countries.
C. Output
- Derivation of improvement tasks for the current FTA origin management and origin
certification system
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- Derivation of functional requirements for the development of an FTA origin
management system through a field survey
- Analysis of features and functions of the domestic private or public FTA origin
management systems
- Research on how to implement functions and systems suitable for Vietnam
- Online interviews or investigations in case of difficulty in visiting Korea
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- Identification of Corporate’s Current Internal Process of Origin Management and
Improvement Needs
• Key Investigation Items
a) Preparatory stage for origin certification
b) Difficulties of origin certification within companies
c) Difficulties in preparing and printing C/O, and improvement needs for
processing
d) Process for issuing C/Os
e) Whether or not having experience in origin certification
2.2 Presentation of a TO-BE Model of FTA Origin Management System and FTA
Origin Certification System
- Establishment of a TO-BE model reflecting Vietnam FTA utilization environment
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- Suggestion of strategic use to participating companies by presenting a model for FTA
origin management system
- An online seminar will be held in case of difficulty in visiting Vietnam
Ⅲ. Project Preparation
A. Participating Organizations
1. Shinhan Customs Service Inc. and Kord Systems are jointly responsible for this
project, forming a research team of trade and system experts. This team conducts
planning, institutional analysis, field research, environmental analysis and proposal
presentation, pilot version testing, and final reporting.
2. This team will liaise with the Ministry of Industry & Trade, General Department of
Vietnam Customs, and KOTRA Hanoi Trade Center and receive business support
from the experts of local FTA & customs and system of Shinhan Customs Service
Vietnam.
Organizatio Major Achievements
Name Position (Role)
n
- 2020 Korea-Vietnam Economic
Cooperation Work Program (Project on
Korean market entry promotion strategy
of Vietnamese agricultural products)
Choi, Dae-Kyoo Senior Researcher - Korea-Vietnam Economic Cooperation
Work Program (Project on enhancement
of utilization capacity of Vietnam FTA)
- Vietnam FTA origin management
system development and operation, etc.
Shinhan - Project Discovery Support in 2020
Customs Korea-Vietnam Economic Cooperation
Services Work Program
Park, Sung-Hyun Researcher
- Professional consulting services for
KOTRA Overseas FTA Utilization
Support Center, etc.
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- OK FTA consulting support project
- Professional consulting services for
Lee, Woo-Seul Researcher
product classification and FTA origin
verification, etc.
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B. Task Allocation
Organization
Project Plan Specific Activities KOTR Resear
MOIT
A -cher
Project planning O
Planning,
Consultation, and
O
Confirmation of
PCP
Analysis of Vietnam’s FTA origin management and FTA
O support O
origin certification system
Institutional
Feasibility study for system establishment O support O
Analysis
Advisory support and cooperation for Vietnam’s local
O support
system and statistical data
Field survey planning O
Liaison with the local companies O support O
Field Survey
Interview with the local companies and survey on
O
issues/difficulties
Analysis of the local laws related to origin certification O support O
IT technology and infrastructure analysis for Vietnam
Environmental
ECOSYS (FTA origin certification system) O support O
Analysis and
development
Proposal
Technical design (Draft) for the establishment of
O support O
Vietnam-specific FTA origin management system
Presentation for a pilot version of Vietnam-specific FTA
O
origin management system
Pilot Version
Establishment of Vietnam-specific FTA origin
Testing
management system support O
Implementation of pilot service in Vietnam
Planning and consultation of the final report support O
Drafting of the final report O
Final Reporting
Translation of the final report O
Holding a final report briefing session O support O
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C. Implementation Plan
1. This project will be conducted for five months from July 5, 2021, to December 15,
2021, and the following is the proposed project plan and major activities.
(Institutional Analysis)
- Analysis of Vietnam’s FTA utilization status
- Comparative analysis of Vietnam FTA origin management system and FTA origin Aug
certification system 2021
- Feasibility study for system building
(Filed Survey)
- Drafting checklist for field survey
- Company-visit survey
Aug
(Environmental Analysis and Proposal for Establishment) 2021
- Legal analysis related to origin certification in Vietnam ~
- Analysis of IT technology and infrastructure for Vietnam ECOSYS development Mid of Oct
(FTA origin certification system) 2021
- Technical design(draft) for the establishment of Vietnam-specific FTA origin
management system
(Final Reporting)
- Submission of the final report Dec
- Final report briefing session 2021
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D. Logical Framework
Data Sources/
Design Summary Target/Indicators Assumptions/Risks
Reporting Mechanisms
Overall Goal
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Data Sources/
Design Summary Target/Indicators Assumptions/Risks
Reporting Mechanisms
• Establishment of a system(draft) suitable for the local companies system(draft) based on the comparative
local companies by considering the Vietnam analysis of the relevant statutes between the
customs clearance environment two countries
• Research on how to implement functions
and systems suitable for Vietnam
considering the features of the domestic
private and public FTA origin management
systems
Activities Inputs Pre-Condition
• Comparative analysis of FTA origin • Budget: Total USD (MOSF, Korea) • Establishment of a project action plan
management system between Korea and • Organization: Shinhan Customs Consulting Service, Kord Systems, Shinhan with an appropriate budget and time
Vietnam Customs Services Vietnam schedule
• Environmental analysis of Vietnam’s FTA - Total 10 consultants and researchers • Execution of complete project with
origin management and FTA origin appropriate budget and time schedule
certification environment • Support of the Vietnamese
• Derivation of functional requirements for government
Vietnam-specific FTA origin management
system development
• Support for the Local Survey Team
• Pilot operation for the local companies (for
machinery, apparel and electric/electronic
companies)
• Final report briefing session for the spread
of the consulting outcome (one time)
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E. Final Report Sample
Chapter 1 Introduction
Section 1 Research Background and Research Question································································
1. Research Background ··········································································································
2. Research Question··············································································································
3. Purpose of Research and Expected Outcome···············································································
Section 2 Research Methodology······························································································
1. Research Direction··············································································································
2. Research Methodology and Process··························································································
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Section 2 Comparative Analysis of Systems related to the Korea-Vietnam FTA Origin Management
1. Korea’s Systems related to FTA Origin Management·····································································
2. Vietnam’s Systems related to FTA Origin Management··································································
3. Comparative Analysis of Systems related to FTA Origin Management of Korea and Vietnam····················
4. Legal Framework and Systems Required for the Promotion of Vietnam’s FTA Origin Management System····
Chapter 4 Conclusion
1. Research Conclusion···········································································································
2. Suggested Directions for Promotion of Vietnam’s FTA Origin Management System································
References
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