Enterprises are expected to benefit from tracing export goods through electronic or digital tagging. Information hiding habits Vietnam is a world leader in agricultural produce. But the overwhelming majority of Vietnamese producers have not realised the importance of clarity and transparency and the way they access information can enhance their competitiveness in the international market. Some companies are afraid of revealing trade secrets, while others use obfuscation to hide trade frauds. According to the Ministry of Agriculture and Rural Development (MARD), almost all domestic businesses use paper records. They invent a code for each batch that is printed on packaging according to the tacid agreement between trade partners. This means only businesses can understand the code and investigate product origins. Regulations require traces to be completed within 24 hours, but it is almost impossible in Vietnam. Storing records is more difficult than keeping them in six months let alone two years. No wonder state management agencies, importers, and consumers find it all the more difficult to trace the roots of every product. The necessity of traceability State management agencies have urged businesses to adopt more modern methods of tracing product origin but have thus far enjoyed negligible success. The “TraceVerified” electronic traceability system for agricultural and seafood products will help reduce red tape, encourage agriculture’s sustainable development, and improve the competitiveness of Vietnamese exports on world markets. According to the Danish International Development Agency, the Global Competitive Assistance Program’s “TraceVerified” system will bring practical benefits to state management agencies and businesses involved in the import-export sector. Danish Ambassador to Vietnam Frederik Andre Henrik Christian cited the difference between EU and US laws which has affected Vietnamese farm produce exports. Tracing product origins by paper work is too slow to compare with electronic traceability – a common practice in Europe and America. Increasing Trade Exchange Awareness Dr Dang Kim Son, Director of the Institute of Policy and Strategy for Agricultural and Rural Development, said producers should ensure transparency to assist businesses. With 14 million farmers working on a large scale, it is important to help them avoid the risk of market fluctuations as they are at the mercy of dishonest traders. Farmers need to collect data on scale, output, competition, input materials, production services, and investment policies. Vietnam’s agricultural producers and businesses are disadvantaged by their comparatively sluggish start. “TraceVerified” Project Manager Dr Nguyen Hong Minh said the Ministry of Agriculture and Rural Development should establish locality codes for every agricultural and seafood product in line with international standards. “TraceVerified” Deputy Director Ly Hoang Hai explained how scannable printed codes connected to the website network can meet the origin trace requirements of different importers. The “TraceVerified” system is currently in place for 12 local businesses. And the project managers plan to install free systems for seafood export businesses by the end of 2014. According to experts, the application of a universal electronic traceability system is certainly feasible, but it will require intervention from state management agencies, enterprise associations, and new businesses to ensure its success. VOV