Developing logistics services in Vietnam: A number of solutions recommended
English - Ngày đăng : 08:01, 17/01/2023
Situation of developing the logistics service sector in Vietnam
Logistics development policies has been promulgated quite synchronously and specifically, such as the Decision no.200/ QD-TTg, dated February 14, 2017 by Prime Minister on approving the Action Plan for Improving Competition Abilities and Developing Vietnam’s Logistics to 2025. This is considered a breakthrough step to Vietnam’s logistics- a field that has been received great attention from both the State’s management agencies and the enterprise community. The Action Plan has been considered a new wind for development of Vietnam’s logistics service sector in the coming time and for long-term as well.
Then, on February 22, 2021, Prime Minister just issued the Decision no.221/ QD-TTg amending and supplementing the Decision no. 200/QD-TTg dated February 14, 2017 on approval of the Action Plan of Improving Competition Abilities and Developing Logistics Services in Vietnam by 2025. The new decision set the target by 2025 the contributing proportion of the logistics service sector to GDP would reach 5%- 6%- a decrease compared to targets set in the Decision no.221/QĐ-TTg (targets set at 8%- 10%). The decision no.221/ QD-TTg has added a roadmap for implementation of the plan. Accordingly, in 2023, a preliminary review and assessment of the results of the implementation of the action plan will be conducted, and the theoretical and practical basis will be prepared for 2024 tasks: researching and developing a development strategy for the Vietnam’s logistics service sector in the period 2025 - 2035, vision to 2045.
According to the Ministry of Industry- Trade, the logistics performance index of the logistics sector in 2021 reached 3.34 points- an increase of 3.27 points compared to 2018. Vietnam is also a country ranked in the top 10 in term of Logistics Performance Index in the new emerging markets with rather high growth- 14%- 16% pa. In general, the improved quantity and quality of the logistics service sector has contributed greatly in Vietnam’s import-export turnover.
Currently, the number of logistics enterprises in Vietnam has increased from 37,000 in 2017 to 41,000 in 2020 and has been growing in the fields of transportation, warehousing, customs clearance and distribution. In addition, logistics service enterprises have also been making efforts to transform operation methods, increasing investment in equipment, focusing on training and development of human resources, actively taking part in digital transformation and green transformation to adapt with new development conditions, meeting the increasing demands and standards of customers in the use of environmentally friendly services.
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However, limitations in the development of the logistics service industry in our country are still large. Accordingly, the number of logistics service enterprises has grown rapidly, but with low quality, small scale, they have been facing certain difficulties. In addition, Vietnam’s logistics sector previously seems to have only focused on developing the domestic market, therefore their development has not been commensurate with its potentials. Besides, high costs, limited competition abilities, loose linkage with import-export sector, shortage of high-quality human resource should be considered...
Solutions recommended
(1) State management agencies need to have more specific guidance on administrative procedures, making the investment cooperation process among enterprises more convenient and time- saving. At the same time, at present, for strongly developing e-commerce and the trend of cross- border transportation between countries, although customs procedures have been improved a lot, state procedures related to this field need more convenience.
(2) Currently, between state management agencies has shared data links, but it is necessary to strengthen further sharing between state management agencies and businesses. In particular, the State needs to create a platform in some areas to link elements in the supply chain. It is necessary to create a link between elements in the supply chain, such as customs, ports, road carriers, shipping lines, etc. to help reduce delivery time faster. In general, management agencies must consider logistics as a supporting industry to have appropriate support policies, such as allowing processing enterprises to pack and label goods at bonded warehouses.
(3) There has been sharing of data links among state management agencies, but it is necessary to strengthen further sharing among state management agencies and enterprises. In particular, the State needs to create a platform in some areas to link elements in the supply chain. It is necessary to create a link between elements in the supply chain, such as customs, ports, road carriers, shipping lines... to help reduce delivery time. In general, management agencies must consider logistics as a supporting industry to have appropriate support policies, such as allowing processing enterprises to pack and label goods at bonded warehouses.
(4) It is necessary to standardize logistics infrastructure services by applying standardized freight rates and unifying the toll collection system. In addition, Vietnam needs to form an electronic data exchange system. In which logistics related parties such as transport companies, warehouses, and customs ... are connected through a single electronic system, a lot of time will be saved from the receipt and processing of operations.
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(5) To ensure the role of logistics in maintaining supply chains and services, there should be different ideas, visions and solutions to catch up with those of the world, showing a leading role in efforts of environment protection and in reducing greenhouse gas emission. There should be cooperation among ministries, sectors and relevant agencies to concretize and to consult the Party’s and the Government’s points of views and policies on development of Vietnam’s logistics service sector.
At the same time, there should be research and submission to functioned authorities to issue the Strategy of Developing Vietnam’s Logistic Sector to 2030, vision to 2045, meeting development requirements of the world’s new situation. Orientations of green logistics and environmentally friendly solutions should be paid attention to. Mechanisms, policies, law on logistics services, multi-modal transport, cross- border transport, legalizing international commitments on logistics should be implemented to facilitate logistics activities and development of green logistics in Vietnam. Task contents should be checked, updated and modified for effectively implanting the Plan of Upgrading Competition Abilities and Developing Logistics Services to 2025. Action plan for the period of 2026- 2030 should be prepared.
(*) HCMC College of Foreign Economic Relations