HÀ NỘI — Việt Nam Customs and the South Korea Customs Service have signed a mutual recognition agreement (MRA) on Authorised Economic Operator (AEO).

Upon signing and implementing the AEO MRA, the parties will complete the necessary domestic procedures to establish the legal framework. 

According to Việt Nam Customs, the MRA aligns with global trends and brings numerous business benefits while enhancing customs management efficiency. The primary goal is to provide long-term advantages for enterprises.

Many customs administrations perform AEO mutual recognition as an effective approach to enhancing competitive advantage, creating a transparent and proactive environment for international businesses and shortening customs clearance time. It also saves trade compliance costs and supports production promotion while ensuring security and safety for the global supply chain.

Vietnamese priority enterprises will enjoy preferential treatment under domestic regulations and benefit from the privileges stipulated in the AEO MRA with the partnering country. 

This is a significant advantage, fostering economic development and international integration and elevating Việt Nam Customs’ stature. Moreover, it attracts domestic enterprises to join the priority programme, improving compliance within the business community.

Additionally, the MRA facilitates the effective implementation of provisions in the Việt Nam-Korea Free Trade Agreement (VKFTA) and the World Trade OrganiS ation's Trade Facilitation Agreement.

South Korea is one of Việt Nam’s most vital partners across various sectors, including politics, investment, trade, industry, energy and tourism. 

Within the scope of bilateral trade cooperation, the signing of the MRA between the customs authorities reflects the enduring political trust and reinforced collaboration between the two nations.

This MRA expands areas of cooperation, establishes a long-term and substantive collaborative mechanism, and deepens economic and trade relations.

As of August 2024, South Korea has 935 AEOs engaged in export-import activities, logistics and port operations, contributing about 50 per cent of the country’s export turnover and 70 per cent of its import turnover. 

In Việt Nam, by the same period, there are 76 AEOs, accounting for over 30 per cent of the nation’s total export-import turnover.

According to the World Customs Organisation (WCO), an authorised economic operator (AEO) is a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national customs administration as complying with WCO or equivalent supply chain security standards. — VNS