Tracing origins hindered by fragmented data systems

As the Government accelerates the digital economy, establishing a unified national traceability system has become a crucial move to end data fragmentation and disconnection among ministries, sectors and localities.

Melons labelled with traceability codes on display at the Song Van agricultural produce store in Ninh Binh city, Ninh Binh province. (Photo: VNA)
Melons labelled with traceability codes on display at the Song Van agricultural produce store in Ninh Binh city, Ninh Binh province. (Photo: VNA)

Hanoi (VNA) - Amid booming digital commerce, product traceability is emerging as the crucial “passport” for Vietnamese goods to expand globally, even as fragmented systems and weak data authentication continue to hinder its full effectiveness.

Advanced technologies such as blockchain, the Internet of Things (IoT), RFID, big data and QR codes not only digitise product information but also turn each item into a “quality passport”, allowing customers, distributors and regulators to follow its entire journey from raw materials to end-use. With each product carrying a “digital passport”, businesses do more than provide information; they deliver trust, now valued in the digital marketplace even more than price.

Nguyen Thi Tinh, General Director of Vietnam Food Industry JSC (VIFON), said the company has a dedicated department specialising in product quality management. This team works regularly and in close coordination with other units and production plants to trace the origins of both domestic and export products.

For high-quality goods to reach the market, traceability from raw materials to finished products is essential to ensure consumer safety, she noted. Each enterprise must therefore proactively develop its own traceability framework, particularly at a time when counterfeit and substandard products remain widespread.

In Dak Lak province, agricultural exporters have seen tangible results after attaching QR codes to durian, coffee and pepper. Le Anh Trung, Chairman of the Dak Lak Durian Association, stressed that in today’s globalised landscape, traceability is not only a legal obligation but also a major opportunity for producers and exporters.

Verifying origin, he said, is the key to opening the door to success. It enhances brand value, strengthens customer relationships and facilitates the export of agricultural products to foreign markets. Traceability, therefore, is not merely an internal or regulatory requirement but a strategic competitive advantage in international trade.

Tran Thanh Binh, head of the Origin of Goods Division at the Ministry of Industry and Trade’s Import–Export Department, shared that Vietnam is now involved in 19 free trade agreements, with 17 already in force and two recently opened for negotiation. To fully benefit from tariff preferences, businesses must meet all rules of origin and traceability requirements, considered the “passport” for Vietnamese products to access global markets.

Importantly, goods management is divided into two areas: domestic circulation, which focuses on identification and traceability; and import-export, which requires compliance with rules of origin. These two spheres are closely coordinated to protect domestic consumers while ensuring alignment with international commitments.

Traceability is not just a technical tool but a modern governance mechanism where data, regulation and responsibility intersec. Nguyen Van Thanh, head of policy at the MoIT’s Department of E-commerce and Digital Economy, shared that Vietnam is now the third-fastest growing e-commerce market in Southeast Asia, behind Indonesia and Thailand. Online retail sales hit 20.5 billion USD in 2023, rose to 25 billion USD in 2024, and are projected to reach 31.5 billion USD in 2025, with an average annual growth rate of 25.5%.

However, he emphasised that the biggest bottleneck is the lack of a reliable information-verification system. Consumers may see a QR code, but the accuracy of the data behind it is uncertain. Meanwhile, legitimate businesses face unfair competition from low-quality products. Traceability, he argued, is therefore not only a technical tool but also the ethical foundation of e-commerce.

The core solution is the creation of a unified national traceability system. Currently, ministries, provinces, and businesses operate their own systems with varying standards and data formats, making collaboration difficult and resulting in a siloed structure.

Some companies generate their own traceability codes without independent verification. When disputes arise, authorities lack the basis to verify information, leaving consumers at a disadvantage and eroding market trust.

To address this, data should be linked with the Ministry of Public Security’s national ID database and sectoral management systems under MoIT, ensuring every transaction and product is tied to a real legal entity. This will prevent anonymous sellers, protect buyers and enable regulators to enforce compliance swiftly and accurately.

This is not merely a technical fix but a strategic step towards building a culture of trust in the digital environment, an essential condition for green, transparent and sustainable e-commerce development.

As the Government accelerates the digital economy, establishing a unified national traceability system has become a crucial move to end data fragmentation and disconnection among ministries, sectors and localities.

When data becomes a shared language, e-commerce will not only grow rapidly but also more transparently, fairly, and responsibly. This is the foundation for Vietnamese products to integrate confidently into global markets and for enterprises to strengthen their credibility with consumers and international partners alike./.

VNA

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