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Binh Dương logistics: enough competence for development

(VLR) (Vietnam Logistics Review) Although at the start, logistics activities in Binh Duong province have had good development, meeting the needs for transport and goods delivery from manufacturing enterprises in the regions and the surroundings. For better information about potentials and advantages of the activities, VLR had a discussion with Mr. Nguyen Phuoc Viet Dung, Director of Binh Duong Customs office.

(Vietnam Logistics Review) Although at the start, logistics activities in Binh Duong province have had good development, meeting the needs for transport and goods delivery from manufacturing enterprises in the regions and the surroundings. For better information about potentials and advantages of the activities, VLR had a discussion with Mr. Nguyen Phuoc Viet Dung, Director of Binh Duong Customs office.

Binh Duong has been considered having potentials for developing logistics service. In the role of a management organization of provincial logistics business, do you have any evaluations of the potentials?

For many years, Binh Duong has maintained the highest economic growth in the country, average GDP of 5 years (2011-2011) has an increase of 13%. Though at the start, logistics services has had good developments that meet the needs for connection between production and business. The river port has been expanded, creating a system of non-tariff system (ICDs, bonded warehouses, CFSs). In addition, investment attractions has been better. Until the end of the second quarter, there have been 19,638 local enterprises with the total registered of VND 146,119bn; there have also been 2,550 foreign projects with the total capital investment of VND 21.5bn. In term of management by Binh Duong Customs Office, in 2015 there were 1.1m declaration forms, import-export turnover was over USD34bn.

However, there have been difficulties: the province has no advantages on port activities, especially deepwater port (only Binh Duong General Port for bulk cargo vessels of 5,000 tons), no airport, low clearances that do not allow container transport by barges. Therefore, for better import-export activities in the region, the improving of logistics services is a mustdo, which will create motivation force for economic growth, especially for those with import-export activities.

Have Binh Duong’s facilities and infrastructures met the needs for the service’s developments?

According to reports from People’s Committee of Binh Duong Province in recent years, facilities and infrastructures of the province relatively meet the needs for logistics services’ developments till 2020.

The Customs Office is currently managing 21 bonded warehouses, 4 CFSs, 2 ICDs and 31 Customs Brokerage agencies. The systems of ICDs, bonded warehouses and CFS are reasonably located, ensure to provide imported materials on time for manufacturers and requirements from exporters as well. Many bonded warehouses has advanced management systems and have large surface areas.

As planned, Binh Duong currently has 09 ports: 04 existing river ports (Binh Duong, ThanhPhuoc, An Son and Ba Lua) and 5 planned ports (Ben Suc, Thuong Tan, ThanhAn, Tan An and An Tay). Of operating ports, only Binh Duong port has import-export activities, others has low clearances so they are enable to receive vessels of low capacity, not over 2,000 tons.

To meet the needs for logistics developments in the provincial region after 2020, there should be more ICDs and higher clearances for bridges on Saigon River and Dong Nai River should be upgraded that enable container barges to reach planned ports. Customs offices should cooperate with provincial sectors and departments to establish non-tariff areas on new industrial parks. “Import-Export Material market” should be established that provide wide range of materials to manufacturers. Developing customs brokerage agencies in specialized manners; forming logistics associations in the area to connect local and foreign investors, upgrading 3PL level in provincial logistics activities; upgrading infrastructures connecting to international ports in the region; ensuring importexport clearance procedures in Binh Duong in Top of the Customs sector; implementing “Professionalism, Transparency, Efficiency” and offering maximum benefits for regional manufacturers and importers, exporters.

How about your evaluation on ability of providing logistics services from logistics service enterprises, compared to the needs from shippers in Binh Duong province?

Until 2015, there were 21 bonded warehouses, 4 CFSs, and 31 customs brokerage agencies providing logistics services for import- export enterprises in the region. The system has currently met the needs of manufacturing and import- export enterprises. However, most enterprises are 1PLs and 2PLs, only 3 enterprises meet the standard of 3PL. There is the lack of management abilities and size of logistics enterprises and there is no associations to connect that leads to unfair competitions. A number of activities in logistics chain have been considered illegal and the service fees of logistics service are still high.

In the process of international integration, logistics enterprises should restructure themselves (merger, joint-stock) to compete with foreign ones. State’s management organizations should be their companion to share difficulties, to guide them, and offer them conditions to develop.

Has Binh Duong Customs Office had any activities to facilitate enterprises’ import- export goods circulation?

There have been a number of activities to facilitate enterprises’ import- export goods circulation in the plan of innovation and modernization of the Customs sector and developing logistics services of Binh Duong province.

In 2014, having mobile scanner at the Inspection spot on National Road 13 for import- export goods inspection for 4 sub-offices with container transport on the road. The use of container scanner shortened the time of inspection to 5-7 minutes (usually 2- 4 hours/ container without scanner), which cut inspection cost and kept goods safety. Another container scanner will be equipped at ICD- Song Than to ensure 100% of container inspected.

In 2015, CFS management software was developed and in 2016, bonded-warehouse software. The development of these two soft wares help import- export enterprises save time doing procedures and cut paper works.

In April 2016, 37 public online services by the Customs Office were developed (06 public services of level 4 and 31 public service of level 3), which help enterprises save travelling time, cut cost, keep information between Customs officers and enterprises transparent, and avoid disturbance.

Holding periodical talks with enterprises at Sub-office level twice pa; holding talks at Office level (10- 12 times pa) with each business associations and holding direct talks with investors in their own languages; having signed cooperation regulations with 6 associations: Korea, Japan, Taiwan, Chinese, Europe, and Binh Duong Import- Export Publishing guidance manual for enterprises in different languages English, Chinese and Japan.

Upgrading website system to ensure publicize documents concerning to import- export activities and to answers questions from import- export enterprises.

Thank you!

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