State management facilitates Logistics development

(Vietnam Logistics Review) Thanks to remarkable changes in awareness of roles and importance of the logistics sector, there have been active changes that make it easier and easier for logistics activities.

SOCIALIZING NATIONAL INFRASTRUCTURE INVESTMENTS

In 2014, the Ministry of Industry and Commerce estimated the total import-export turnover of Vietnam will reach USD 154.4bn, a 16% increase compared to 2014. Basically, trace balance will be maintained in 2014 and trade deficit will probably exceed USD 1bn.

Many obstacles of the logistics sector of Vietnam have not been solved: no planning tasks, weak abilities of providing services of high values serving import-export, weak financial and competition abilities of enterprises. In addition, weak demand of logistics services, import-export cargo congestions at the number of sea ports, issues from fee set by foreign liners, regulations on local cargo transport, weak co-operation among logistics service enterprises... lead to the fact that many import-export enterprises have to undergo high fees, which reduce competition abilities of Vietnam cargo on international markets. And these obstacles should be removed on time for the development of our logistics sector.

According to Mr. Tran Anh Tuan, Deputy Minister of the Ministry of Industry and Commerce, one of the most difficulties is to build an infrastructure connecting to cargo zone. Therefore, national infrastructure system should be developed synchronously. Infrastructure investments should be socialized, together with all resources being mobilized and tight and synchronous cooperation among Ministries, sectors and local
authorities.

PROMPT SOLUTIONS

In the past few years, due to influence from world crisis, Vietnam’s sea transport sector has shown no sign of recovery: transport fee is low, and source of cargo is rare... sea transport enterprises have had lots of difficulties. However, functional agencies has had prompt actions to help them and logistics activities develop.

According to Mr. Bui Thien Thu, Deputy Director of Vietnam Maritime Administration, in order to remove obstacles and support sea transport enterprises, to upgrade sea transport service quality, to create a fair business environment, the administration had had many tasks related to the field of sea transport. Minimum container stevedoring fee will be carried out in experiment at Cai Mep-Thi Vai port area and then will be supplemented to list of price stabilizing items for application nationwide. The Administration has also built and developed a project to replace foreign liners with local Vietnam-flagged container vessels with total capacity of 260,000DWT, with loading capacity up to 16,000TEU, which totally meets local container transport requirements and consolidating requirements among Vietnam’s and other regional countries’ sea ports.

With solutions to infrastructure, according to Mr. Tran Anh Tuan, in the past few years, Vietnam has spent a large part of budget and ODA-funded capital on infrastructure to facilitate developments of cargo transport and logistics services. The system of seaports has gradually build in large scale and equipped with advanced equipment which is suitable to the planning of developing seaports. Synchronous transport infrastructure that ensures connectivity and logistics facilitation will be developed. Road systems connecting to corridors, economic belts will also be developed. Navigation ways, local ports suitable to planning will be improved and upgraded. At the same time, railway system connecting to national seaport systems, especially that connecting to seaports in areas of BR-VT and Hai Phong, will be invested. Airports in big cities will be kept improving.

“Developing logistics services in the field of transport till 2020, orientation to 2030” was approved by the Prime Minister on January 22nd, 2014. Its target is to improve efficiency of exploitation activitiesof ports, especially national sea ports. It contributes in success of Vietnam’s sea strategy till 2020, to 2030. To improve services and to cut logistics costs, Vietnam Maritime Administration adjusted Plan to Develop Vietnam Sea Transport till 2020, orientation to 2030... and it was approved on August 26th, 2014.

Mr. Nguyen Van The, Deputy Minister of the Ministry of Transport said the Ministry has offered breakthrough solutions to constructing synchronous transport infrastructures on all fields as innovating mechanisms and policies to improve State management in constructing transport infrastructures, reforming administrative policies, encouraging additional capital sources to the State’s budget to develop transport infrastructures with more opened policies.

However, Ministries’ and sectors’ offices recommended enterprises increasing productivity, expanding their markets, seeking new business opportunities and at the same time, cooperating with one another to have good preparation to enter regional and international markets.