Inter-ministerial body, Central Committee 127 (CC127), of the Government of Vietnam has extended its memorandum of understanding (MoU) with SICPA Product Security SA (SICPA) to research and deploy solutions against counterfeiting and illicit trade in Vietnam.
The new agreement is the result of a detailed research and consultation process between SICPA and the government of Vietnam which was defined in the initial MoU signed between the parties last year on Feb. 20, 2006. Since that time, plans are at an advanced stage to install a state-of-the-art banderol printing plant under the authority of the Ministry of Finance. Banderols are a key component of what will be a nationwide infrastructure program to track and trace products that are vulnerable to illicit trade.
Maurice A. Amon, executive co-chairman of SICPA Holding said, “To date, cooperation in research and deployment of the “VIETRACE Anti-Smuggling & Tax Enhancement” program has been efficient and productive. We look forward to finalizing our joint-venture negotiations with the Ministry of Finance Printing Company shortly and intend to have the deployment plan and architecture in place for implementation by year end.”
Vietnam’s remarkable economic development over recent years, together with its geographical position bordering various countries, explains the growth in illicit trade. Research carried out by international organizations such as the WHO, cite figures ranging from 15 percent to 40 percent of tobacco and alcohol products in Vietnam being subject to counterfeiting and smuggling.