Vietnam’s logistics industry has many opportunities to develop and engage more deeply in the world’s with the future signing of the Trans-Pacific Partnership (TPP) trade agreement, to which the Southeast Asian country is party. The TPP deal, which aims to liberalize commerce in 40 percent of the global economy, was reached earlier this month, pending approval by lawmakers in 12 participating nations. These countries include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S., and Vietnam. Logistics is a potential sector which requires coordination between state agencies and local businesses, as the bigger share of the pie is in the hands of foreign-invested firms. With the annual growth rate of 12 percent and an export and import turnover topping US$623 billion by 2020, according to the World Bank’s forecast, Vietnamese logistics companies need to improve service quality to increase competitiveness, especially in the face of global and regional economic integration. Smaller scale, higher cost As an important link of the economy, logistics activities help goods to get from producers to end-users, while ensuring timely delivery of materials, components and spare parts from suppliers to producers for production. According to statistics of the Vietnam Logistics Association (VLA), the Southeast Asian nation currently has over 1,300 active logistics companies, including 25 foreign-invested enterprises. However, the foreign players now account for 80 percent of the market share, while thousands of local firms make up the rest. Do Xuan Quang, VLA chairman, told a seminar in Hanoi on Tuesday last week that total logistics costs, including the expenses of transport, storage, warehousing, customs procedures and other paperwork, reach about $37-40 billion annually. "However, $30-35 billion of the total is paid to foreign firms, which means the most delicious part of the pie is in the hands of foreign companies," news website VnEconomy quoted Quang as saying. As the majority of domestic enterprises operating in logistics are small-scale firms, due to their limited financial and management capacity, they are mostly providing simple services. In addition, the insufficient financial capability also bars them from developing a system of specialized logistics facilities, such as warehouses and ports, and applying the latest advancement in information and transportation technology to their operations. In contrast, bigger foreign-invested firms in Vietnam are offering an integrated package of logistics services which include many processes, from cargo delivery to other value-added services like handling customs formalities, warehousing, packaging and distributing. Several experts have pointed out some main factors that also hinder the development of the logistics industry in Vietnam, including underdeveloped transport infrastructure that fails to keep pace with the speed of industrialization, overlapping customs procedures, and the construction of unplanned and incoherent ports and supporting centers. All of these have resulted in logistics cost in Vietnam being among the world’s highest, at 25 percent of GDP, which in turn hinders the cost competitiveness of Vietnamese companies. The respective logistics cost in the U.S., Europe, and the world is about nine percent, 13 percent, and 15 percent. Private sector participation The country’s drive to channel private investment into transport infrastructure has recently helped speed up the privatization of state firms, which previously handled almost all important transport projects, and may have a good impact on the sector in the future, experts said at the seminar in Hanoi. Many private investors at home and abroad have expressed their ambitions to spend millions of dollars owning critical transport infrastructures, according to the Ministry of Transport. Among them are two giants, Hanoi-based T&T Group and Ho Chi Minh Stock Exchange-listed VinGroup, which have constantly suggested acquiring and running many airports, seaports and railways in Vietnam. After owning the right to manage the Quang Ninh port property, T&T has proposed that the Ministry of Transport allow it to take over the Hanoi railway station. Meanwhile, the race to win the right to operate the Phu Quoc airport on the eponymous island is getting tighter with three private firms participating, including T&T, Vingroup and retailer IPP Group. The upgrade of Cam Ranh Airport in the south-central province of Khanh Hoa has over 12 investors bidding for it. Both VinGroup and T&T have also paid their attention to investing in the main railway stations in Hanoi, Ho Chi Minh City and Da Nang. According to the Ministry of Transport, up to 17 rail projects are waiting for the participation of the private sector in an effort to rejuvenate one of the key road transport sectors of the country.
The country has previously granted conditional approval to the Abdala vaccine for emergency use
Even in provincial areas locals are on the 'go' making a living, getting ahead3 years ago
Several experts and doctors have warned about the potential risks owners and their families run when keeping wild animals in enclosure at private homes, including serious infections and losing limbs or even lives.6 years ago
A flight of Jetstar Pacific Airlines (JP) on Wednesday was delayed for three hours and a half after the smoke detector in its cargo compartment released a warning to the aircraft’s computer7 years ago
‘There were days we shared a loaf of bread between two of us, or begged for money from neighbors to buy noodles to eat’3 years ago
Ngoc Thinh, 19, the recently announced winner of the 2nd season of the Vietnamese version of “So You Think You Can Dance,” says that the competition helped him prove his maturity and talent and earned him his parents’ support7 years ago
The donation comes from German stockpiles
He drew the virus, vaccine, and earth on the exterior walls of a house
Residents in the northern Vietnamese provinces of Lai Chau and Ha Giang are trying their best to help one another rebuild their lives after floods took a heavy toll on the two localities last month.
Many sewers along the streets in Ho Chi Minh City have their entrances blocked by garbage on a regular basis, negatively impacting urban esthetics and the environment while helping cause serious flooding.
A young Vietnamese has constantly kept his pencil busy during the ongoing 2018 FIFA World Cup, drawing more than a dozen charismatic portraits of his favorite stars at football’s biggest competition.
Locals who pick up sau, a typical fruit of Hanoi, for sale to earn a living will not start their daily ‘harvest’ until the sun goes down.
The art form is so popular that it attracts people from all ages in the Mekong Delta
Each work is a scene caught by Dung and kept in his memories through his journeys across Vietnam
Sand-boarding, a popular activity amongst local children in the coastal tourism town of Mui Ne in south-central Vietnam, is attracting hundreds of tourists to the Red Sand Dunes
The number of participants in each activity is limited to ten
The fire killed the father and his three daughters
The donation comes from German stockpiles
Good morning from Vietnam!
'Vaccine passports,' which may be in paper or electronic form, have been applied by some areas in the country
Vietnam has received more than 54 million doses of COVID-19 vaccine from different sources
The leaders stressed the importance of the traditional relations and set orientations for cooperation in the coming time
No new COVID-19 infection was detected in Hanoi from 12:00 pm Saturday to 12:00 pm Sunday
The market is located on Tan Da Street in Ward 10, District 5 and offers more than 200 essential products
The heavy rain was accompanied by chances for flash floods, landslides, and local inundation