Global in­te­gra­tion key to lo­gis­tics de­vel­op­ment “

Viet Nam News - - FRONT PAGE -

HAØ NOÄI — The Viet­namese lo­gis­tics sec­tor must take ad­van­tage of global in­te­gra­tion to reach its full po­ten­tial, deputy minister of in­dus­try and trade Cao Quoác Höng said at a meet­ing on Fri­day.

The growth of the Viet­namese econ­omy is ex­pected to help the lo­gis­tics sec­tor main­tain an­nual growth of 12-14 per cent, Höng said.

Op­por­tu­ni­ties for the lo­gis­tics sec­tor to con­tinue grow­ing in­clude Vieät Nam’s par­tic­i­pa­tion in the Trade Fa­cil­i­ta­tion Agree­ment (TFA) of the World Trade Or­gan­i­sa­tion (WTO) that took ef­fect on Fe­bru­ary 2, 2017.

Ac­cord­ing to WTO economists, the TFA could help cut to­tal trade costs of WTO mem­bers by 14.3 per cent, which would ben­e­fit de­vel­op­ing economies the most.

In April, Prime Minister Nguyeãn Xuaân Phuùc set out some im­por­tant tar­gets for the lo­gis­tics sec­tor.

The sec­tor is ex­pected to con­trib­ute 810 per cent of the coun­try’s to­tal gross do­mes­tic prod­uct ( GDP) by 2025 and its growth is fore­cast to reach 15-20 per cent.

The per­cent­age of out­sourced lo­gis­tic ac­tiv­i­ties is pre­dicted at 50-60 per cent, lo­gis­tic costs are fore­cast to fall 16-20 per cent and Viet Nam’s rank­ing in the global lo­gis­tics sec­tor is hoped to climb above 50.

Cur­rently, min­istries and agen­cies are work­ing to boost the sec­tor’s per­for­mance by cut­ting ad­min­is­tra­tive pro­ce­dures and busi­ness re­quire­ments for lo­gis­tic firms, de­vel­op­ing an e-gov­ern­ment sys­tem and on­line pub­lic ser­vices and pub­lish­ing test­ing stan­dards for lo­cal firms.

On Novem­ber 9, the PM launched a pro­gramme on cost re­duc­tion for busi­nesses and as­signed min­istries and agen­cies to im­prove Viet Nam’s lo­gis­tics ef­fi­ciency and trade fa­cil­i­ta­tion, as as­sessed by the World Bank and Or­gan­i­sa­tion of Eco­nomic Co­op­er­a­tion and De­vel­op­ment (OECD).

“All of those solutions aim to cre­ate smooth trade ac­tiv­i­ties and re­duce lo­gis­tic ex­penses for lo­cal com­pa­nies,” Höng stressed.

There are about 3,000 lo­gis­tic firms in Vieät Nam but most are small-sized, he said. Nine out of 10 Viet­namese lo­gis­tic firms have char­ter cap­i­tal of be­low VNÑ10 bil­lion, 5 per cent have char­ter cap­i­tal of be­tween VNÑ10-20 bil­lion and 5 per cent have char­ter cap­i­tal of more than VNÑ20 bil­lion.

Of the 3,000 lo­gis­tic firms, only 360 have signed up to be­come mem­bers of the Viet­nam Lo­gis­tics Busi­ness As­so­ci­a­tion (VLA).

“Those facts prove Viet­namese lo­gis­tic com­pa­nies are not well con­nected and most of them do busi­ness as in­di­vid­u­als, not as a com­mu­nity,” the deputy minister said.

Ac­cord­ing to Deputy Prime Minister Vöông Ñình Hueä, the earn­ings of Viet­namese lo­gis­tic com­pa­nies ac­count for 3-4 per cent of the coun­try’s to­tal gross do­mes­tic prod­uct (GDP), prov­ing their per­for­mance is still mod­est.

“One of the ma­jor problems for Viet­namese lo­gis­tic firms is the un­derde­vel­op­ment of in­fra­struc­ture and fa­cil­i­ties in some prov­inces that can be­come trade hubs, how­ever, those ar­eas are not aware of the ben­e­fits brought about by lo­gis­tic ser­vices,” Höng said.

Slow in­fra­struc­ture de­vel­op­ment would make it more dif­fi­cult for lo­cal firms to ex­pand their net­works and work with each other and for­eign lo­gis­tic firms, Höng added.

In ad­di­tion, Viet­namese lo­gis­tic com­pa­nies have found it hard to en­ter new mar- kets and busi­ness seg­ments, ac­cord­ing to the in­dus­try and trade deputy minister.

“The Gov­ern­ment needs to help Viet­namese lo­gis­tic firms de­velop and catch up with for­eign com­pa­nies,” he added.

“Lo­gis­tic firms of­ten have op­por­tu­ni­ties to work with and learn from for­eign busi­nesses, so they are able to de­velop bet­ter strate­gies and of­fer prod­ucts and ser­vices with bet­ter qual­ity at cheaper price lev­els.”

“Other tasks in­clude the Gov­ern­ment’s ef­forts to im­prove its man­age­ment, sim­plify and clar­ify ad­min­is­tra­tive pro­ce­dures and make the busi­ness en­vi­ron­ment more trans­par­ent and con­ve­nient,” Höng added.

In ad­di­tion, it is im­por­tant to help lo­cal busi­nesses ex­pand their net­works to other mar­kets so the sec­tor is able to keep up its cur­rent growth rate, ac­cord­ing to VLA vice chair­man Ñaøo Troïng Khoa. — VNS

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