ASEAN nations sign agreement on mutual recognition under Authorized Economic Operator

The key contents are mutual recognition and trade facilitation measures, whereby each party will accept the appraisal and recognition of the program of the other party granted to the member.

Trade facilitation measures as follows: 

(1) Quick clearance by reducing the document inspection and physical inspection for goods originating from or in transit to a program member of other Parties depends on the risk assessment of the level of security.

(2) Giving priority inspection for goods originating from or in transit to a member of the Program by other Parties which is selected for conducting the physical inspection;

(3) In the event of a disruption to international trade, try to give priority to process quick clearance for goods originating from or destined for a member of the Program of other participants.

So far, as many as 75 enterprises including domestic and FDI in Viet Nam have been recognized as AEOs. Each year, AEOs in Viet Nam contribute 30 percent of the nation's total export value. 

Besides, to be recognized as an AEO, enterprises must satisfy requirements on average turnover within consecutive years at a certain level. 

For example, the enterprise must reach an import and export turnover of at least US$100 million per year or more, or an export turnover of products made in Viet Nam from US$40 million per year or more.

ASEAN Member States consist of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam.

Trade value between Viet Nam and ASEAN hit nearly US$42 billion in the first half of 2022, according to the General Department of Customs under the Ministry of Finance.

Of the above figure, Viet Nam gained US$17.53 billion from exporting to ASEAN Member States over the first six months of 2022, a year-on-year increase of 26.1 percent and making up 9.4 percent of the nation's total export value.

Meanwhile, Viet Nam spent US$24.43 billion on importing products from ASEAN, up 14.8 percent and accounting for 13.2 percent of the country's total import value.