Vietnam Logistics and priority innovations


Ineffective logistics is the cause of high production cost which badly affects competition abilities of Vietnam's trade sector. Therefore, priority innovations in logistics always are urgent tasks to Vietnam.


According to experts, as a booming economy in the process of integration, Vietnam has had basic industrial infrastructures and growing connections to the world. And its geographical advantages on busiest maritime routes and stable political situations have facilitated its trading activities lately.

However, it has been a challenge to improve its efficiency in the field of logistics. Many indexes showed its logistics sector is weaker than those of other regional countries. Therefore, there should be research on ways to cut logistics cost, to improve its logistics and transport efficiency, which are motive forces for Vietnam's sustainable development. In other words, priority innovations in logistics are indeed urgent tasks to be carried out.


Important international gateways and corridors integrated with multi-modal approach should be in priority. They should be set as targets to improve competition trade abilities and development for the logistics sector: particularly building multi-modal transport infrastructures and using integrated corridor approach. Many experts said current transport infrastructures projects have been planned with single-modal approach for all different sectors as port, local waterway, expressways, railway and airway. Less interactions among sectors and provincial authorities have led to inconsistency in planning and timing, which have made infrastructure project be carried out in parts, not in the basis of multi-modal combinations.

Express way projects that assist the development of ports have always been delayed: a main cause for congestions of cargo from Ports. Roads that connect expressways, parts and inland container deports are unable to meet the needs: another cause of the congestions. It is clear that single-modal transport cannot simultaneously combines forms of transports, which push up production price and import-export price. In other word, it reduces competition abilities of Vietnam's trade sector.

Therefore, Vietnam should boost up the progress of building infrastructures, mobilize capital to build works of cargo consolidation and put them into use as soon as possible, and improve infrastructure maintenance works to connect transport modals to ensure the consistency and efficiency for multi-modal transport. Vietnam should apply multi-sector, multi-modals approaches in planning and carrying out projects of cargo transport infrastructures.

There should be good and feasible legal framework on Public-Private Partnership (PPP): public-private conversations are of importance and it is an important feature that maintains the participations of all members from both public and private sectors.

A more professional road transport sector should be developed. The road transport market in Vietnam has been split and competitions have been carried out on the basis of low price, not of quality. Accidents, congestions, road damages, and pollutions are going to be challenges that Vietnam has to face. However, tight over-load policy by the Minister of Transport has contributed in maintaining a healthy cargo transport business. Experts said road transport can be developed in form of credit approaches to road transport companies. Or other researches on reducing unloaded travelling, improving JV investments with foreign road transports and exhaust control standards have also been mentioned.

Besides, simplifying procedures for import-export documents and customs procedures, applying all risk management methods and IT, developing national and ASEAN "one-stop" mechanisms are things for innovations in preparation for the joining of AEC in the end of 2015.

(Vietnam Logistics Review)



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