Logistics 2018 Steps of development

(VLR) (Vietnam Logistics Review) The year of 2017 was considered the year with remarkable improvements from the government, ministries, departments and sectors to the logistics sector, among which are administrative procedure adjustments to the logistics and import- export. They are premises for breakthroughs in 2018.

(Vietnam Logistics Review) The year of 2017 was considered the year with remarkable improvements from the government, ministries, departments and sectors to the logistics sector, among which are administrative procedure adjustments to the logistics and import- export. They are premises for breakthroughs in 2018.

Administrative procedure innovations to facilitate enterprises

In 2017, the customs sector had new policies and solutions to simplify customs administrative procedures by applying IT and new managerial methods to improve business efficiency and competitions abilities. General Department of Vietnam Customs has been carrying out the project of E-Tax Collecting with cooperation from 36 commercial banks for tax collecting and clearance 24/7 through E-payment Gate. The procedure is simple: taxpayers give information and they are transferred to VNACCS for cargo clearance, which helps enterprises cut derived cost and time.

Applying IT in cargo supervision at seaports and digital signature in information declaration when vessels coming, leaving or in transit: cargo supervision systems at seaports have facilitated enterprises and improved managerial efficiencies of customs and related offices’: a premise for applying them at seaports nationwide The Ministry of Commerce Industry said a number of administrative procedures and business conditions will be abrogated or simplified.

To the field of air cargo, in October 13th, 2017, the Ministry of Finance signed the Decision no.2061/ QĐ-BTC to apply in experiment automated customs inspection to imported, exported cargo or cargo in transit at Noi Bai International Airport.

There was also the Decision 2072 from Deputy Prime Minister Trinh Dinh Dung dated December 22nd, 2017 on adjusting master plan of inland container depot system to 2020, orientation to 2030. The purpose is to gradually form and develop a system of ICDs to meet needs for import-export cargo transport, to increase cargo clearance abilities of seaports, to connect means of railroad and waterway transport for multi-modal transport developments, contributing to restructuring transport mechanism in the directions of cutting transport time and costs.

Logistics break throughs in 2018

Report from World Bank showed that Vietnam Logistics Performance Index (LPI) was ranked 64/160 of economies (a decrease of 16 ranks from the rank of 48), with a decrease of 5/6 elements and was ranked the 4th in the ASEAN region (after Singapore, Thailand and Malaysia). However, in 2017, the Government had more attentions and development policies for 2017, making premises for breakthroughs in 2018.

E-commerce and automated industry sector currently are factor to boost Vietnam logistics sector’s developments in 2018. Statistics from Armstrong and Associates in 2017 showed e-commerce would predictably account for 7.2%7.5% of the world’s total logistics turnover in 2020.

Experts also said logistics sector is shifting its focus to Asian newly emerging markets. This is also a driving force to give Vietnam logistics sector developments in 2018 and in the future.

Logistics developments in 2018

Vietnam logistics costs currently are high. Logistics costs in 2016 were USD 41,26bn, equally to 20.8% GDP, and contribution to GDP was around 2%- 3%. For urgent needs for developments, in 2017, there were breakthrough in Vietnam logistics sector and the Government has had more attention to it and more development policies.

The Prime Ministered signed the Decision 200/ QĐ-TTg (February 14th, 2017) to approve the Action Plan of Improving Competitions Abilities and Developing Vietnam Logistics Sector to 2025. This is a large scale plan with 60 tasks divided into 6 groups with implementations from related ministries, sectors, associations, People’s Committees of Cities and provinces’, and Vietnam Chamber of Commercial and Industry (VCCI). The 51st task is to establish a Logistics National Guidance Board. This is an important decision to developments of the logistics sector to give it breakthroughs in the new year and to bring it to a new stature of an international one.

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