Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Vietnam’slogistics industry can reap the rewards of the country’s growing economy.
Nguyen Thi Thu Trang, Director of the Vietnam Chamber of Commerce andIndustry's WTO Centre, told a conference in Hanoi on November 25 that theComprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)is expected to bring a conducive business environment for logistics activities.
Trang told Vietnam News: "The CPTPP commitments, which eliminate tariffsand non-tariff barriers, will create conditions to increase the supply ofgoods, enhance the e-commerce sectors, and increase the demand for logisticsservices."
As the agreement also sets a legal framework to create a healthy and openbusiness, Trang said: “Logistics, after all, can enjoy sweet fruits as theresult.”
Also seeing the strength of the industry, Deputy Prime Minister Vuong Dinh Huetold the Vietnam Logistics Forum 2019 themed “Logistics Adds More Value toAgricultural Products” in Da Nang city that ministries and industries shouldboost the sustainable development of the logistics sector.
According to Minister of Agriculture and Rural Development Nguyen Xuan Cuong,agricultural products of Vietnam went to 185 countries and territories,reaching the export value of 42.5 billion USD last year, adding that “logisticsenjoyed much from the export.”
At the same forum, data from the Ministry of Industry and Trade (MoIT) said thelocal logistics sector maintained a growth rate of 13-15 percent per yearthanks to the growth of the domestic economy and import-export activities.
The World Bank report on Logistics Performance Index (LPI) released on July 24,2018 also noted that Vietnam ranked 39th out of 160 surveyed countries, up 25places compared to 2016 and ranked third among ASEAN countries.
But some fear, to reach these goals, manyhurdles need to be overcome.
Considering the development of thetransportation and logistics sectors, insiders still saw shortcomings such ashigh costs and low linkages between service businesses and production andimport-export enterprises.
Dinh Thi My Loan, Chairwoman of the VietnamRetailers Association told Vietnam News: “Logistics is one of the key importantparts in retail, however, the high cost of warehousing and transportationsystems have added burden to goods prices, affecting competitiveness of thelocal retail.
"In some cases, logistics fees accountfor 70 percent of the product's price."
A representative from MoIT said logisticscost for one kilogramme of dragon fruit to the US via air was of 7 USD, half ofthe export prices of the product, adding that the high cost was loweringcompetitiveness in the foreign market.
In addition, Nguyen Nhat, deputy Ministerof Transport, said transport was the backbone of the industry, however thelocal transport has not yet met demand, especially in the export of agricultureproducts.
Nhat said: “Though Vietnam has 50 domesticand 130 international air routes with refrigerated cargo aircraft fortransporting products, those with the refrigerated cargo fleets are all foreignairlines.”
Officialsfrom the World Bank said Vietnam joined the logistics market after manycountries, so it must quickly simplify procedures for goods clearance, buildmore logistic centres and enhance cooperation with the private sector for betterand faster logistic service./.
Nguyen Thi Thu Trang, Director of the Vietnam Chamber of Commerce andIndustry's WTO Centre, told a conference in Hanoi on November 25 that theComprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)is expected to bring a conducive business environment for logistics activities.
Trang told Vietnam News: "The CPTPP commitments, which eliminate tariffsand non-tariff barriers, will create conditions to increase the supply ofgoods, enhance the e-commerce sectors, and increase the demand for logisticsservices."
As the agreement also sets a legal framework to create a healthy and openbusiness, Trang said: “Logistics, after all, can enjoy sweet fruits as theresult.”
Also seeing the strength of the industry, Deputy Prime Minister Vuong Dinh Huetold the Vietnam Logistics Forum 2019 themed “Logistics Adds More Value toAgricultural Products” in Da Nang city that ministries and industries shouldboost the sustainable development of the logistics sector.
According to Minister of Agriculture and Rural Development Nguyen Xuan Cuong,agricultural products of Vietnam went to 185 countries and territories,reaching the export value of 42.5 billion USD last year, adding that “logisticsenjoyed much from the export.”
At the same forum, data from the Ministry of Industry and Trade (MoIT) said thelocal logistics sector maintained a growth rate of 13-15 percent per yearthanks to the growth of the domestic economy and import-export activities.
The World Bank report on Logistics Performance Index (LPI) released on July 24,2018 also noted that Vietnam ranked 39th out of 160 surveyed countries, up 25places compared to 2016 and ranked third among ASEAN countries.
But some fear, to reach these goals, manyhurdles need to be overcome.
Considering the development of thetransportation and logistics sectors, insiders still saw shortcomings such ashigh costs and low linkages between service businesses and production andimport-export enterprises.
Dinh Thi My Loan, Chairwoman of the VietnamRetailers Association told Vietnam News: “Logistics is one of the key importantparts in retail, however, the high cost of warehousing and transportationsystems have added burden to goods prices, affecting competitiveness of thelocal retail.
"In some cases, logistics fees accountfor 70 percent of the product's price."
A representative from MoIT said logisticscost for one kilogramme of dragon fruit to the US via air was of 7 USD, half ofthe export prices of the product, adding that the high cost was loweringcompetitiveness in the foreign market.
In addition, Nguyen Nhat, deputy Ministerof Transport, said transport was the backbone of the industry, however thelocal transport has not yet met demand, especially in the export of agricultureproducts.
Nhat said: “Though Vietnam has 50 domesticand 130 international air routes with refrigerated cargo aircraft fortransporting products, those with the refrigerated cargo fleets are all foreignairlines.”
Officialsfrom the World Bank said Vietnam joined the logistics market after manycountries, so it must quickly simplify procedures for goods clearance, buildmore logistic centres and enhance cooperation with the private sector for betterand faster logistic service./.
VNA
