In TPP: logistics industry will

Joining TPP, Vietnam logistics industrydevelopment not only in the direction ofproduction, but also have theopportunity to move further into thetrading center of the world’s 

According to the Association of Logistics, Vietnam’s logistics costs account for about 25% of GDP per year, much higher than in developed countries like the US, China or Thailand. In the future, the official khiTPP signed with thousands of tariff lines to 0% promises exciting development of export-import operations in Vietnam. This is considered a great opportunity for the logistics industry “boom”.

However, in recent years, the logistics service enterprises Vietnam has not really find a common voice for the import and export business. Most of logistics enterprises in Vietnam are small businesses, small capital and lack of facilities such as warehouses, wharves, information technology, transportation …

To better understand the advantages and challenges of Vietnam logistics eve TPP, we had a talk with Mr. Tran Chi Dung – Director of Logistics Research Centre Vietnam (VLI).

Currently, Vietnam has concluded negotiations with 11 countries TPP members. How do you evaluate the potential of Vietnam logistics market in the context of integration?

Tran Chi Dung: Logistics is still regarded as a new industry in Vietnam also. However, I think this is not a new industry that is growing industry instead.

Considering the extent of Vietnam is a country logistics. Vietnam has favorable conditions for the development of the sector with a long coastline, located in the strategic center of Southeast Asia.

In the context of TPP negotiations are finished and ready to go to conclusion, AEC formed soon, block CLMV (Cambodia – Laos – Myanmar – Vietnam) + Thailand will be the center of the region. The East-West Economic Corridor, North-South will explode with growth the world’s most dynamic.

Meanwhile, Vietnam is not only developed towards production, but also have the opportunity to move further into the trading center of the world’s transport. Since then likely to become the center of trade, finance. This is also where the connection between the region and other countries worldwide.

However, the update rate is slow logistics Vietnam compared to some countries. In terms of common ground in the region, Vietnam can be proud of is not inferior to Indonesia, the Philippines, even marginally better. But we are losing Thailand, Singapore. Singapore is a country with updated logistics speed very fast.

In Vietnam, for several years now, the Government was interested in this sector and certain progress. But in general, the cost of transport such as travel expenses, transportation, loading and unloading … remains high; while the capacity of the logistics enterprises are limited.

So how Vietnam can participate more deeply into the global logistics chain?

Logistics is an attractive sector. Due to the high cost of professional workers should have plenty of opportunities to improve the capacity and competitive advantage. Besides, the trend of vertical mergers are also increasingly popular as companies seek overseas logistics enterprises Vietnam is working well for the link.

However, the industry is so competitive potential in the industry is also very fierce. Themselves foreign enterprises have experienced global competition should compete with local firms is not simple.

Besides, Vietnam businesses also face a problem that must be really big to compete with foreign firms in the context of deeper integration today. This requires that the initiative of the enterprise.

My personal experience shows that Vietnam now few dare to step abroad. Connectivity between businesses, industry connections in the community, between the community sector and other sectors is not high.

For example, the car industry development entail spare parts sector, shipbuilding and other industries have led to … Vietnam needs common handshake between business and the industry to truly connect deeper into global value chain.