When Vietnam joins the TPP, Vietnam logistics industry has many
opportunities to develop and engage more deeply into the world’s logistics
centers…
According
to the report of World Bank, the forecasted growth rate between 2015 and 2020
is 12%/year and import export turnover reached 623 billion USD in 2020, Vietnam
is a promising destination for investors.
According
to the statistics from the Vietnam Logistics Business Association (VLA),
Vietnam’s logistics costs accounted for about 25% of GDP per year, much higher
than countries such as the US, China or Thailand.
In
the coming time when TPP agreement takes effect with many
tariffs equal 0%, the export-import operations in Vietnam will promise to
develop strongly. This is considered a great opportunity for the logistics
industry to “boom”.
As
an important link of the economy, the logistics activities help the goods to
reach consumers and ensure the materials for the production process.
Despite
facing strong competition from foreign rivals, many experts still appreciate
the future prospects of the domestic logistics enterprises, especially in the
context of free trade agreements (FTAs, TPP) boosted FDI inflows pouring into
Vietnam industries.
On
the other hand, the increasingly improved infrastructure in Vietnam will
strengthen connectivity between logistics facilities and production areas;
planning and supporting from the State, along with customs procedures are
gradually improving in a positive direction.
In
the recent two years, a series of key infrastructure projects have been started
and completed as Long Thanh – Dau Giay highway, Noi Bai – Lao Cai
highway, Ha Noi – Hai Phong highway, Ben Luc – Long Thanh highway Highway 51
connecting industrial park with the ports and Soai Rap channel dredging works
(in Hiep Phuoc port) and Thi Vai – Cai Mep channel…
In
addition, the Government and the Ministry of Transport have launched a number
of policies to guide, support and stimulate the sustainable development of the
domestic logistics industry such as: policy to control road loading,
preferential policies for Vietnam ships on domestic routes, the draft to
establish port authorities to develop ports and port services, Decision No.
1037/QD-TTg on the port development plan till 2020…
Moreover,
according to the General Department of Vietnam Customs, Vietnam is also
actively developing and implementing the ASEAN Single Window mechanism. The
implementation of this process will benefit the business community, including
logistics businesses such as reducing the time taken for administrative
procedures and also cost reduction.
However,
in order to develop logistics industry, the State should build and complete the
legal framework, standardized service processes, upgrading infrastructure and
human resources for the field of logistics.
Government
should also take measures to guide and promote logistics companies to link
together, formed the company with strong capabilities, able to compete with
foreign companies.
With
the above subjective and objective elements, Vietnam’s logistics industry still
have great potential to develop and first of all, they will have conditions to
advance to move towards to same level with foreign logistics businesses in the
region.
ANT
Consulting is here to assist you from the outset; providing corporate
intelligence, risk advisory, management consulting services
that assist market entrance, and ensure efficient business start-up
operation. Our services are as following:
We
strive to save your cost by guiding you towards economical solutions that
comply with local legislation and procedures. We support you through early
logistic solutions and carry you through as your business grows. We aim to bridge the gap
between international best practices and local cultures and assist foreign
companies and organizations entering Vietnam market to overcome commercial and
regulatory issues.
We could be reached at email: ant@antconsult.vn or
tel: +848 3520 2779 . To learn more about us, please visit
www.antconsult.vn
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