In November 2011 in Yokohama City, there was a project sponsored by APEC (Asian-Pacific Economic Cooperation) with a target of boosting the cooperation between management authorities and businesses in logistics sector to create a strong connection in logistics supply chain in each country, building a model of “National Logistics Association”. And Vietnam was chosen to be a test case before applying it to countries in APEC.
In the 1st Conference (Australia, April.2011) and the 2nd (Thailand, March 2012) 3 members (two as representative for management authorities and one from association) from Vietnam were invited to share the real situation in the country and to get experience from senior logistics associations in designing “new clothing” for Vietnam Logistics sector in the coming time.
VIETNAM LOGISTICS ASSOCIATIONS – A LOOSE CONNETCTION
Vietnam logistics sector, in spite of being “young” in professionalism, has had lengthy activities since the 70’s. The warehousing-forwarding (the name used in the period) was proved to be very successful in supplying goods in the State subsidy period. It was the cradle of Vietnam current logistics sector. Together with the foundation of Vietnam Freight Forwarding Association) since 1993, there have been another associations founded, as Vietnam Shippers’ Association (VSA), Vietnam Auto Transportation Association (VATA), Vietnam Ship Agents and Brokers Association (VISABA), Vietnam Seaports Association (VPA) and recently Vietnam Shippers’ Council (VNSC)…In addition, there have been many organizations, businesses as banks, insurance companies, inspection companies, consulting companies, retailers, import-exporters… taking part in the development of Vietnam logistics sector.
Vietnam is a country with many logistics associations, which is similar to Thailand with 5 associations and Indonesia with 8 associations. VIFFAS has had many members (over 1,000) operating in transportation, forwarding, warehousing, ports, logistics services, customs and import-export providers. In general, they are businesses that provide logistics services (LSP: logistics service providers) from simple services to packaging services (asset-base or non asset-base).
In real situation, there has been a loose connection among associations. For each association has had distinctive characteristics so they have different way to approach management authorities. Therefore, it is impossible to have a synchronous unified policy for logistics sector, especially in the field of human resource, IT, infrastructure investments. In order to create synchronization in the sector, VIFFAS has recently suggested to change its name into Vietnam Logistics Associations (VLA).
VIETNAM FEDERATION OF LOGISTICS ASSOCIATIONS – NEW CLOTHING
The target of the mention project is to make a break-through to APEC Supply Chain Connectivity Framework Choke Point No.1(*), paying a full attention to logistics framework, solving the lack of transparency and coordination from Governmental authorities to problems of the logistics sector. And the model of National Logistics Association was introduced – similar to those in Australia, Singapore, and Thailand – countries with lengthy experience in development of transportation, logistics, human resource training and supply chain management.
In the 1st and 2nd conferences in Australia and Thailand, Vietnam representatives, especially VIFFAS one, chose the approach of “Vietnam Federation of Logistics Association” (VFLA). This was the latest name adjustment of the Federation since the 1st conference.
“New clothing” for Vietnam logistics sector, though in the process of designing, will be the model that meet requirements for the building of the strong Vietnam logistics, making a strong connection among members and thus encouraging a full cooperation in Vietnam supply chain. This will also lead to professionalism and effectiveness. Significant benefit from “new clothing” is the coordination between the logistics sector and management authorities, which becomes an important link, a premise for integration and development of Vietnam economy. And frameworks and policies will pave the way for the development of Vietnam logistics sector to regional and global stature.
Vietnam logistics sectors will have the answer from other associations in the 3rd conference, which is hold in Hanoi at the end of May this year.
“NEW CLOTHING” OR “POTATO BAG”?
In the conclusion part of the speech in the 2nd conference in Bangkok, Thailand (March 2012) Dr. Tengfei Wang – economic specialist of UNESCAP- notified: “The important thing is to identify businesses making the logistic sector, finding a common point for the similarity and different solutions for different activities”.
Challenges ,before and after the foundation of VFLA, will be how to keep the unity and cooperation among association members by eliminating different features and seeking common interests to reach a strategic vision and synchronous activities, which will enable the sector have a common voice in suggesting policies or asking for coordination from management authorities. Besides, distinctive features should also be considered for adequate solutions.
Another lesson drawn from the project “National Logistics Associations” (from National Logistics Associations of Australia and Singapore) is to find people with adequate enthusiasm and talent to dress the Association.
To achieve the model of VFLA, considerable supports from management authorities: Ministries, Departments as the Ministry of Transport, the Ministry of Industry and Trade, the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Home Affairs, General Department of Customs… should be accounted for. And it is the Government who designed new clothing for VFLA! And associations in the sector do need people with good strategic visions. And thus, we can stay away from the fear that the “new clothing” turns into “an ugly potato bag.”
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(*) Choke point No.1 of APEC Supply Chain Connectivity Framework Choke point No.1: lack of coordination between government and industry on logistics supply chains.
