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Logistics Vietnam is constrained, surrounded by many barriers

Logistics is the backbone of international trade, but the competitiveness of Vietnam's logistics industry is very limited, many burdens make Vietnam's logistics costs always expensive. Quickly applying information technology to logistics activities and removing bottlenecks will help this industry contribute more to the development of the national economy.

"Lonely" businesses are prone to "act"

Once a low-cost logistics service and a high ability to meet customer requirements will contribute to boosting domestic and foreign trade and the national economy. For countries with the same per capita income, the country with the best logistics activity has an increase in growth of 1% of GDP and 2% of trade. In Vietnam, logistics efficiency in the past year has improved well, logistics efficiency has improved the most in the past decade, from the position of 53 in 2007 to 39 in 2018. However, according to Ms. Nguyen Thi Minh Thao, Head of the Department of Business Environment and Competitiveness, Central Institute for Economic Research and Management (CIEM), the pressure on the expensive service sector has not decreased.

Specifically, clearance time is still long, high costs, and specialized management procedures still face many difficulties, affecting logistics operations. According to Ms. Thao, logistics development infrastructure is not synchronous, lack of connection. The largest market share of logistics services is maritime transport (accounting for 60% of logistics structure), mainly belonging to international shipping lines and the increasing cost of shipping lines. Foreign logistics enterprises only account for 3%, but hold 80% of Vietnam logistics market share. According to Ms. Thao, the scale of small logistics enterprises, these enterprises account for 72%, international competitiveness is limited, mainly providing simple services, taking on the role of satellite for water logistics enterprises. out. Not to mention, currently business conditions, specialized management, and administrative procedures are still barriers to logistics enterprises.

To clarify the cost of expensive transportation in Vietnam, Ms. Nguyen Minh Thao also said that the cost of transporting a 40-foot container from Ho Chi Minh City to Tan Thanh border gate is VND 5,800,000 (by road), while from Ho Chi Minh City to the US (California) is 200USD (equivalent to about 4,600,000 VND) by sea. In addition, the road maintenance cost is VND 17,500,000 / car / year, while businesses still have to pay BOT fees, in many cases the car is broken, there are no cargoes, ... not running on the road. must return.

“In particular, the cost of lubrication is in almost every stage, pushing up service prices and reducing the competitiveness of logistics. Transportation companies have to bear a lot of pressure from the Market Management force on the national highway 1, especially Binh Thuan, Ninh Thuan, Da Nang, Quang Tri, Nghe An and Thanh Hoa provinces. present procedures with specialized management agencies, if they are "lonely" companies, without each relationship with state management agencies, the dossiers are easy to return ", Ms. Thao said.

CIEM's research on barriers to business conditions shows that Decree 86/2014 / ND-CP on business and transportation business conditions by cars requires the labeling of "trucks" for vehicles. download, however, there are companies that submit the application for registration of the "truck" badge for several hundred vehicles of the enterprise, but 2 months from the time of filing the dossier, the enterprise has not been granted the badge, so it will not be circulated on Road even though it has met all traffic safety inspection regulations. Meanwhile, there are countless reasons for state managers not to issue badges to businesses. This is a professional enterprise, specialized in providing domestic transport services, forced to "save cars" seriously affect business of enterprises, pushing up logistics costs.

"Fathering many mothers" but still "weak"

According to Mr. Tran Duc Nghia, Director of Delta International Co., Ltd., road transport accounts for 77.5%, waterway accounts for 17%, sea transport is nearly 5%, railway 0.4%, air transport is 0, 02% in the freight market share in Vietnam. Road transport has a high cost, only behind aviation and allowing road transport to occupy a large market share makes Vietnam's logistics costs soar. The cause of this situation is the weak connection between transport modes, not exploiting the available potential of other modes of transport such as railway, sea and inland waterways to share pressure. force with road transport, contributing to reducing public investment and lowering logistics costs.

Limited development and synchronous connection of transport modes on the same transport corridor are also emphasized by CIEM representatives. According to Nguyen Thi Minh Thao, in Vietnam, currently multimodal transport has not been developed due to the infrastructure of the yard is not properly planned and arranged, investing in connecting the lack of transport methods. the set. Road transport has many conflicts with traffic flows, causing traffic congestion, especially congestion on the road to the port. Meanwhile, the railway does not integrate into the international railway transport network. At present, the 1m gauge railway (not up to international standards) accounts for nearly 85% while the 1,435m gauge gauge accounts for only 7%.

Experts also said that at present, the level of information technology application in Vietnamese logistics enterprises is still at a low level, especially the application of information technology in road transport activities (currently accounting for more than 77% of the transport market share of the whole society). According to Tran Duc Nghia, this is a factor that makes businesses unable to operate effectively, cut costs and improve service quality. Reportedly, Vietnam Logistics Services Association has proposed to deploy electronic delivery orders. If this system is implemented, it will save millions of labor hours of the whole society every year. However, in order to deploy such a system, it is necessary that the efforts of the whole society in which businesses must be compatible to connect and state management agencies need to be ready to connect and accept. “We have had successful examples such as the General Department of Customs deploying e-customs and the cargo manifest system (eManifest) or Hai Phong and Tan Cang ports deployed e-port (ePort) ... However In order to implement these successful examples on a large scale, we need to start from the legal system, ”said Mr. Tran Duc Nghia.

Many opinions said that state management agencies and port and air units, shipping lines must be at the forefront of information technology application towards connecting with other market entities to create lips. IT school, creating motivation for other enterprises in computerization of management activities.

A problem that has received the attention of enterprises is the logistics management agency. While China has a national Logistics Committee, in Vietnam, one of the major limitations affecting the competitiveness of the logistics industry is that this industry is being managed by "very many parents" but still not There are agencies that perform the state management role in this area. Logitics activities are multidisciplinary, in which cargo transport activities are managed and operated by the Ministry of Transport, operating and distributing warehouses managed and operated by the Ministry of Industry and Trade. customs and all other ministries manage the specialized procedures applicable to import and export of goods. “From this limitation, it is necessary to establish a new state management agency or assign state management responsibility to logistics activities for a specific ministry or branch so that logistics activities can be managed, organized and planned. ", said Delta representative.

For CIEM, CIEM representative said that in order to improve the competitiveness of the logistics industry, it is necessary to plan the construction of container trucks and trucks to facilitate the transportation of goods, contributing to reduce logistics costs. At the same time, 50% of business conditions, specialized management and inspection reforms, 50% of the items to be inspected must be cut in accordance with the Government's instructions, ensuring the essence and efficiency. Results and deployment of construction and development of transport transaction floor.

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