On February 14, 2017, the Prime Minister signed and promulgated Decision 200/QD-TTg (Decision 200) approving the Action Plan to improve competitiveness and develop Vietnam’s logistics services until 2025. This is the first time that Vietnam has a legal document affirming its determination to develop the logistics service sector, and at the same time, to come up with practical, medium-term solutions to support logistics development in Vietnam.
These achievements
After more than a year of implementing Decision 200, the logistics industry in general and the logistics service business capacity of enterprises in our country have made significant progress. From the correct guidelines and policies of the Party and State, effective and efficient use of management tools for logistics activities in the process of international economic integration in recent years, we have some of the following achievements:
Step by step perfecting the legal framework on logistics
In the past year 2017, with the special attention and direction of the Government, the Prime Minister issued Decision No. 200/QD-TTg dated February 14, 2017 approving the Action Plan to improve competitiveness. compete and develop logistics services in Vietnam by 2025 with the issuance of Decree No. 163/2017/ND-CP dated December 30, 2017 regulating logistics service business and Directive No. 21/CT-TTg July 18, 2018 on promoting the implementation of solutions to reduce logistics costs, effectively connecting the transport infrastructure system. This action plan, regulations on logistics service business and drastic directives of the Government and Prime Minister are highly breakthrough, creating a legal corridor and an open and healthy business environment to promote logistics activities of our country are increasingly developing sustainably.
Enterprise capacity and quality of logistics services are improved
According to the Vietnam Association of Logistics Service Enterprises, along with the growth rate of GDP, industrial production value, import and export turnover, retail value of goods and services, in the past time, Vietnam’s logistics has a relatively high growth rate of 12-14%, the proportion of enterprises outsourcing logistics services is about 60-70%, contributing about 4-5% of GDP in 2017.
According to the World Bank Report in 2018, Vietnam’s logistics performance index (LPI) ranked 39/160 countries participating in the study, up 25 places compared to 2016 to rank 3rd in the world. ASEAN. Vietnam is also ranked at the top of emerging markets. This is the best result that Vietnam has had since the World Bank made the LPI ranking since 2007 until now.
Logistics infrastructure is increasingly improved
In the past two years, road transport infrastructure has made great strides in development, in the direction of modernity, with focus and focus, many highways and large bridges have been upgraded and built to focusing on works that are connected, pervasive, and create driving force for socio-economic development. The Da Nang – Quang Ngai expressway project opened to traffic at the end of June 2018. Besides, Bach Dang bridge and highways Hai Phong – Ha Long, Ha Long – Van Don have been put into operation since the end. In 2018, forming a modern and continuous traffic network of the Northern coastal area, an important link connecting the three growth poles of the economic triangle of Hanoi – Hai Phong – Quang Ninh.
By sea, Lach Huyen international gateway port in the North has put into operation the first 2 ports in May 2018. When put into operation, Lach Huyen port will contribute to bringing import and export goods of Vietnam. The northern region as well as the whole country can go directly to the European and American markets, in addition, it also contributes to attracting the volume of goods transiting the Northeast region of Laos through the East-West corridor and the South China region. .
Regarding aviation, along with upgrading existing airports, in 2018 Van Don airport was the first airport in Vietnam invested in the form of BOT and put into operation. Airports are currently expanding their cargo handling capacity, some airports like Can Tho are considering building a modern air logistics center to serve the growing demand in the Mekong Delta region. .
In 2018, logistics infrastructure including logistics centers, distribution centers, inland ports, bonded warehouses also increased in number and upgraded in technology. Logistics centers are turning to information technology applications in goods management, tracking and location retrieval. Some specialized logistics centers are almost fully automated. Major logistics centers are now concentrated in Hai Phong, Dong Nai and Binh Duong.
Training activities, technology application and other activities actively support the logistics service industry
The number of schools, institutes and institutions participating in logistics training is increasing, the training program has been upgraded in the direction of depth, professionalism, and relevance to reality. high level. Many technology solutions are applied in warehouse management, vehicle management, goods management to help logistics service activities be performed better and faster.
Raise awareness about logistics
In the past two years, the dissemination and propaganda of logistics has been paid attention to from the central to local levels, with the creative application of many information and propaganda channels such as television, radio, newspapers. traditional newspapers, newspapers and websites to social networks and online forums. As a result, the awareness of stakeholders about the orientations, policies and contents in the field of logistics has been increasingly improved.
Viet Nam Logistics Review Magazine, website www.logistics.gov.vn, VTV9 are communication channels providing information about the logistics industry in service of state management, production and business activities of enterprises; research and training activities in the field of logistics. This is also a reliable address to connect trade, investment and cooperation for agents in the field of logistics.
There have been many conferences, seminars at the State and local levels, the industry has been organized to discuss solutions to improve logistics efficiency, connect supply – demand in the field of logistics … Most localities across the country have issued implementation of a logistics development plan in its area. The two years 2017-2018 also witnessed positive developments in international cooperation in the field of logistics. There have been many cooperation memorandums and cooperation exchanges between Vietnamese logistics service enterprises and international associations and businesses.
The existence and causes
In addition to the achieved results, logistics activities of Vietnamese enterprises, although having favorable development, have not fully exploited the geo-economic advantages and are commensurate with the potential of each locality; The infrastructure for logistics activities as well as the connection between commercial infrastructure, traffic infrastructure, information technology infrastructure, etc., both domestically and regionally, is still not high, so the deployment efficiency is not high. Decision 200 has many shortcomings.
In the past year, the Government together with ministries, branches and localities have made great efforts to build a legal framework and create a healthy and open business environment for logistics activities in Vietnam. However, in practical implementation, management agencies at departmental, branch, local level and businesses still face many difficulties and inadequacies. The main reason is that some regulations are still overlapping, many administrative procedures and specialized inspection are not appropriate. Although, the governing bodies have issued many documents to guide the remedy, but there has not been an assessment of the implementation of the management policies, the overall development of the logistics industry in order to promptly amend them. in accordance with the characteristics of logistics activities in practice.
The coordination in research and planning by ministries, branches and localities has not really brought into play its effectiveness and efficiency; Some provinces and cities have potential, but trade and transport infrastructure has not been adequately invested, so logistics service activities in general have not been developed. Especially so far, our country has not had an overall strategy for the development of Vietnam’s logistics industry.
The weakness of Vietnamese enterprises is that service costs are still high, the quality of some services is not high, in the context of Vietnam’s service supply market today with fierce competition. The main reason is the limitation of enterprise size and capital, experience and management qualifications, the ability to apply information technology as well as the level of human resources that have not yet met the requirements of international operations and an unsatisfactory principle. Another important factor is that there is no source of goods because Vietnam mainly exports FOB and imports CIF, in addition, there are limitations on logistics infrastructure and transportation costs on land, seaport surcharges imposed by ship owners. imposed by foreign countries.
Orientations and tasks to be implemented in the coming period
In order for the implementation of Decision 200 to be highly effective, in the coming time, relevant ministries, branches, localities and industry associations need to focus on well implementing a number of contents as follows:
1. First of all, it is necessary to raise awareness and deeply grasp the perspective and direction of consistent direction throughout the development process of the logistics industry in the coming time, which will be a “fundamental service” industry. Logistics plays an important role in renewing the growth model and restructuring the economy as well as improving quality, efficiency, rapid and sustainable development in our country.
2. Focusing on propaganda, dissemination and guidance for enterprises operating in the field of logistics to effectively implement relevant legal documents in order to achieve stable and sustainable growth in export turnover. .
At the same time, ministries and sectors should continue to promote administrative reform, cut or simplify administrative procedures related to logistics, especially specialized inspection procedures; promote the application of information technology in stages at all levels, sectors and enterprises operating in the field of logistics.
3. Along with the deepening integration process and the rapid development of logistics in Vietnam, the research and development of an overall strategy for the development of the logistics industry in the period after 2025 to implement the policy of ending Comprehensive connection with countries in the region with specific goals, measures and implementation roadmap is urgent.
4. In the coming time, for the logistics industry to develop smoothly, it is necessary to have a breakthrough in state management innovation, organization, operation, and mechanisms and policies on infrastructure investment and construction. traffic, commercial infrastructure, and information technology infrastructure to be commensurate with the actual practice.
In which, it is necessary to review the planning, build logistics centers that effectively connect with seaport systems, domestic and regional roads to create convenient and highly efficient routes and flows of goods. On the one hand, it is necessary to have policies to encourage socialization in investment, but in the immediate future, it is also necessary to prioritize the allocation of central and local budgets for investment in key construction items in the region. have geo-economic advantages to develop the logistics industry.
5. It is necessary to open and develop the market for logistics, creating conditions for Vietnamese logistics service enterprises to quickly rise up and catch up with the development level of the world. Logistics service enterprises are those that have a lot of contact with foreign countries, have learned a lot of experience in integration and competition, so they have to be more proactive and have a methodical development strategy to expand their scope and process. scale of operation, bringing high quality services at a reasonable cost to customers.
6. Along with the flexible management decentralization mechanism between the central and local governments in order to further improve the role of directing and administering logistics activities, the building of a team of qualified logistics personnel subjects, professional skills, good foreign languages, ethical qualities to meet new requirements and tasks in the coming time can be said to be important factors.
7. The Ministry of Transport and the Ministry of Industry and Trade need to closely coordinate with localities in the development of traffic planning to ensure effective connection with the planning of logistics centers in the whole country, linking the planning. logistics center with inland port planning (actually also a type of logistics center); complete infrastructure and connect modes of transport by road, railway, waterway, sea and air; guide and encourage enterprises to actively deploy multimodal transportation and apply technology in the field of transportation in order to reduce logistics time and costs.
At the same time, ministries, branches and localities need to continue to deal with outstanding issues in the collection of infrastructure fees (BOT), fees and surcharges at key ports in order to cut unreasonable costs.
8. The Ministry of Education and Training, the Ministry of Labor, Invalids and Social Affairs should select a number of universities, colleges and vocational secondary schools to focus on investing in and supporting the improvement of the quality of specialized training in logistics. . At the same time, agree with other countries in ASEAN on the framework of training and retraining programs, towards the recognition of diplomas and professional certificates in logistics in order to contribute to the development of high-quality human resources serving the domestic logistics industry. particular and the region in general.
9. Provinces and cities across the country are more interested in maximizing their advantages in geo-economics and regional linkages, combining the work of attracting investment and developing logistics service infrastructure to minimize time logistics time and costs for businesses.
10. For Vietnam’s industry associations and enterprises in the coming time, it is necessary to thoroughly grasp the viewpoints in production and business activities in order to increase the added value of exported products and goods, on the other hand, it is necessary to change the concept of “buy CIF, sell FOB” to create conditions for domestic logistics service enterprises to participate more in providing international logistics services.
Source: http://www.vietnamshipper.com/
