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Vietnamese businesses lose $ 35 billion pie ???

Domestic enterprises employed only foreign logistics enterprises to work “hands and feet” like handling, tallying.

Only 25 enterprises (companies) multinational logistics operations in Vietnam, but account for 80% market share of logistics service providers, while more than 1,200 domestic enterprises, but only about 20% market share.

Do Xuan Quang, Chairman of Business Association Vietnam Logistics Services (VLA) stated sad picture on the conference related to this field which took place in Ho Chi Minh City. Personal communication with Laws HCMC, Mr Quang said: The cost of logistics (transportation costs, storage, warehousing, customs procedures and other paperwork …) each year in Vietnam, accounting for about 21% -25% of GDP, equivalent to 37-40 billion USD. Sadly, more than 30-35 billion USD of which belongs to foreign companies, as part of the most delicious piece of cake, the foreign logistics eaten it all.

Only employees

. Reporter: The picture that you have just mentioned so sad, so errors in one, sir?

+ Do Xuan Quang, Vietnam logistics enterprises in 20 years rapid development, from a few tens of thousands now has both. But our companies limited capital, but large numbers of high quality and small size. On average, the capital of Vietnamese enterprises only 6-7 billion.

With such a modest amount of capital they have not created the warehouse, parking not to mention the development of networks, investing large vessels. As if building a shed also lost about 1 million, if only they do 200,000-300,000 USD.

So businesses hire only do our country for foreign companies to work “hands and feet” like handling, tallying … hard that the lowest value. Or local businesses have come to accept as agents, subcontractors only!

. But do not be blamed everything for Vietnamese enterprises weak, small scale?

+ Yes. In recent years, our country’s fastest-growing investment seaports, airports, railways, road infrastructure but weak connection is limited. There are seaport built without access roads, no warehousing.

Such as Cai Mep – Thi Vai exploit only 17% capacity. Trucks come into the city is not. That is not including customs procedures, then lubricate charges, and Police … causing long delivery times, high cost. Also, due to the practices of the sale and purchase of goods import and export enterprises of Vietnam has accidentally “killed” internal logistics enterprises.

Risk completely dominate

. Can you tell more about how buying habits of import and export enterprises to “knock out” logistics Vietnam?

+ If Vietnam enterprises producing FOB sales price (delivery at the port), the buyer (importer of foreign enterprises) will be the designated shipping charterer, so they designated their water vessels rather choose Vietnamese ships Men do. Similarly, Vietnam’s habits DN long when importing raw materials, purchased goods are purchased CIF price (the seller is a foreign firm will bear all costs freight to the port of buyers) so foreign exporters will hire foreign carriers.

DN habit sold FOB CIF buy huge influence to the operation of Vietnam marine vessels, fleet customers and you do not have to “die” all is so.

The government also has a policy to encourage enterprises to sell CIF, FOB purchase price to facilitate domestic carriers, but most Vietnamese businesses still tend to prefer foreign, prefer to hire foreign logistics concern.

. According to him, Vietnam also store data logistics companies to regain market share from foreign competitors?

+ At the end of 2015, Vietnam will officially join the ASEAN Economic Community (AEC), ASEAN + 6, and then coming here is the Agreement Trans-Pacific Partnership (TPP), the risk will be DN logistics Vietnam foreign dominate completely.

To avoid this scenario, I think the link, a joint venture between Vietnamese logistics businesses together or with foreign firms as a way to compete. But our businesses need to have a local customer. The fact that the import and export enterprises in Japan, South Korea logistics companies hire their own countries.

But most importantly, local businesses have to offer, good quality, reasonable price, fast delivery time, the competition is new and so is the import and export enterprises in the new countries support internal logistics enterprises.

Previously, the coastal route running ships transporting goods from Haiphong to Ho Chi Minh City and vice versa, initially for foreign companies to do, then do not give any more to create conditions for domestic enterprises do. Unfortunately, due to poor service, long delivery time caused local businesses who offer no rent, finally had to let foreign companies.

. The countries in the region such as Thailand, Malaysia, Singapore … have a strong logistics industry development, Vietnam can learn anything?

+ Thailand makes very good logistics due to the government’s policies to their logical and dynamic enterprises. For example: They do have an industry authorities, while Vietnam still each part such as customs administration, tax, the Ministry of Finance; Trade Promotion Ministry of Industry and Trade; transportation management by the Ministry of Transport.

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