Mr. Stanley Lim- FIATA’s President:” Vietnam needs logistics professionals”

(VLR) On the business trip to Vietnam, we have a talk with Mr. Stanley Lim – FIATA’s President (International Federation of Freight Forwarders Association) about logistics sector, one of the most important fields of an economy.

On the business trip to Vietnam, we have a talk with Mr. Stanley Lim – FIATA’s President (International Federation of Freight Forwarders Association) about logistics sector, one of the most important fields of an economy.

Mr. Stanley Lim – FIATA’s President

Mr. Stanley Lim – FIATA’s President

Welcome to Vietnam, can you talk about the importance of logistics to a country?

As we know, when we talk about logistics, we are talking about a cargo flow, together with related services as finance, IT… Logistics and trading are closely related. Trading cannot be carried out without transport. Logistics is connected to import/export. No logistics, no transport and no transport, no import/ export. It can be said that logistics plays a very important role in contributing a country’s GDP. It is necessary to professionalize logistics in any country for it has direct effects on the economic development of that country.

And your ideas about Vietnam logistics?

Vietnam is a big country. It takes over two hours to fly from North to South. Not counting any international transport yet, it is of great importance to transport cargo inside your country. Vietnam is a country that produces various products and then imports them to other countries. Logistics therefore is quite necessary for your country. Vietnam needs logistics professionals. It is time for Vietnam to boost up its training to have more professionals on the field to catch up with its international trading development.

How to effectively save logistics cost?

Cost is an important factor in logistics for it is counted for the total price of goods. We need to do it in time, not too early, not too late. A good logistics arrangement helps us to avoid keep inventory too long in a warehouse, which is costly. If the amount of good being transported increases, and unnecessary stagnation can be avoid, cost for trading activities and import/export can be cut.

Can you tell us about coordination ability between FIATA and Vietnam Logistics Institute in logistics human resource development?

FIATA is a logistics training consultant and we have had experience in training in developing countries. Vietnam has Logistics Institute responsible for logistics training from basic to advanced level. This proves Vietnam has chosen a right way to go and had a scientific logistic development strategy. FIATA is an international organization setting minimum standards and necessary skills for the sector. When joining courses from FIATA, learners will get familiar to solve issues without making mistakes, so they can save time. This also means activity expenses can be cut.

Besides, coordination with FIATA can help Vietnam Logistics Institute make good use of expertise sources that we have transferred to serve Vietnam logistics sector.

In your opinion, how can state-owned management agencies assist local businesses to increase their competition abilities in international market?

Your small and medium sized businesses accounts for 60% total GDP. The Government should have capital supporting policies to them to approach international knowledge sources on management and operation.

It is certain that participants should have certain knowledge about their sector. And after their training finished, they are able to apply knowledge to their own businesses and so it goes.

What are the difficulties in developing logistics service sector in newly-developing countries?

In my opinion, the first difficulty is capital issue. When you have strong enough capital, companies will be able to provide full-package logistics services. Second, many logistics has not yet recognized the importance of buying insurance to their businesses. When they buy insurance, they can lessen risks and therefore, when there is mishap, they are able to conserve their abilities from interests being protected by insurance.

But it is now difficult to persuade companies to buy insurance? What can VLA do to assist businesses?

I think businesses should buy insurance to protect their own business activities. No business can foresee mishap or accidents happening when carrying out logistics services.

The Association should help its member by negotiating incentive insurance package when buying a large number. For example, it can chose a creditable insurance seller and then introduce members to buy from it.

With a large order of insurance, the Association will have certain advantages in negotiating a reasonable price for its members. And then there should be a condition that a business when taking part in the Association should buy insurance for their activities, which is considered as a guarantee for quality of business member. When there are large members, the Association can hold a seminar discussing business insurance. This is an attentive topic. Besides, there is an another kind of insurance: insurance for cargo senders.

Thank you.

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