Major solutions to develop logistics services

08:55 | 22/04/2016 Trade

(VEN) - The Ministry of Industry and Trade (MoIT) is consulting other ministries and sectors concerned to complete the drafting of an action plan to develop and enhance the competitiveness of Vietnamese logistics services.

Major solutions to develop logistics services

Vietnam is pursuing the goal of becoming one of the world’s top 50 logistics service providers

Based on its research results, the International Economic Development Institute forecast that the Vietnamese economy and exports in particular will grow strongly after the Trans-Pacific Partnership (TPP) takes effect. This will promote the circulation of goods domestically and abroad, increasing the demand for third-party logistics services. Obviously, the room for developing logistics services in Vietnam is great.

However, Vietnamese logistics services remain underdeveloped due to human resource shortages, poor infrastructure, and inadequate regulations. In this context, the government has provided guidance for the MoIT to prepare an action plan to develop and enhance the competitiveness of Vietnamese logistics services.

The draft action plan is targeted at taking Vietnam into the list of 50 world-leading logistics service providers, reducing logistics costs from 25 percent at present to 19 percent of total production costs, contributing to boosting trade facilitation and administrative reform, restructuring production and trading activities, forming modern, professional logistics businesses capable to compete in the global market, building logistics centers meeting regional and international standards, and enhancing the effectiveness of connections between Vietnam and other countries.

Improving service quality

The MoIT has proposed five groups of measures to achieve these targets.

Firstly, it is necessary to create an adequate legal framework and suitable policies to facilitate the development of logistics services. Specifically, Vietnam needs to amend and supplement logistics-related contents of the Commercial Law; create suitable policies to promote rapid and sustainable development of logistics services in accordance with Vietnam’s World Trade Organization (WTO) and free trade agreement commitments.

Secondly, it is necessary to improve the infrastructure for logistics development. A detailed plan for logistics infrastructure development needs to be made in accordance with industrial, agricultural production and import, export plans as well as and socioeconomic development strategies of localities.

Thirdly, it is necessary to enhance business capability and service quality through attracting domestic and foreign investment into logistics development; promoting the application of information technology in operating and managing logistics supply chains and training activities; and integrating logistics services with production, import, export, and circulation of goods.

Fourthly, it is necessary to promote market development, brand building, and encourage owners of bonded goods to use specialized logistics services and change import, export practices (buy CIF and sell FOB) to minimize the dependence on foreign transportation service providers, facilitating domestic businesses’ participation in high value added logistics service supply chains.

Fifthly, it is necessary to boost training to improve the quality of human resources; standardize training curriculums at the university, college, and technical high school levels to improve the effectiveness of logistics training.


Lan  Ngoc