A container is loaded at a PetroVietnam Technical Services Corporation port (Photo: VNA)Hanoi (VNA) - TheEuropean Union-Vietnam Free Trade Agreement (EVFTA) will boost the demand forlogistics services and significantly impact on Vietnam's logistics industry,said a trade official.
Ta Hoang Linh, Director of theEuropean-American Markets Department under the Ministry of Industry and Trade,delivered the remarks at a seminar held in Hanoi on December 24.
Trade relations between the EUand Vietnam within the EVFTA framework will increase the transportation demandnot only between the EU and Vietnam but also between the EU and Southeast Asia,Linh said.
Besides transportation, demandfor warehousing services will also increase, thus we need to improve thequality of the transportation and warehousing, especially because Vietnam’s andthe EU’s logistics industry is developing at a different rate, Linh added.
Vietnam currently has almost1,500 logistics services providers. According to World Bank’s 2018 LogisticsPerformance Index (LPI), Vietnam ranked 39/160 countries. This result increased25 positions compared to the ranking of 64 in 2016.
Vietnam ranked 4th in ASEANafter Singapore, Malaysia and Thailand. In 2017, Vietnam announced a plan totransform the country into a regional logistics hub by 2025.
When the commitments takeeffect, the EVFTA can bring a great opportunity for Vietnam’s logisticsindustry.
Vietnam-EU trade relations havedeveloped at a rapid speed. From 2000 to 2018, import-export turnover hasincreased by more than 13 fold, from 4.1 billion USD in 2000 to 55.8 billionUSD in 2018.
During the period, Vietnam’s exportsto the EU soared from 2.8 billion USD to 41.8 billion USD, and imports from theEU to Vietnam jumped more than 10 times, from 1.3 billion USD to 13.89 billionUSD.
Linh also said liberalisationwould attract EU investors to take part in the provision of various logisticsand maritime transport services in Vietnam, including general cargo handling,container cargo, bulk cargo, liquid cargo, passenger ships, logistics services,warehousing and multimodal transportation.
Vietnamese logistics businesseswill have the opportunity to co-operate and learn from and call for capitalfrom multinational companies, Linh said.
According to Nguyen Canh Cuong,Vietnam trade counsellor for the EU and Belgium, besides opportunities,Vietnamese businesses will also face many challenges brought by the EVFTA.
Under the plans for dutyexemptions, with items such as food, pharmaceuticals, machinery and equipmentimported from the EU, the European businesses will require a secure logisticsand transportation system and stringent international standards and proceduresneed to be followed, he said.
Goods exported from Vietnamalso need better assurance on the quality of preservation and transportation,especially agricultural products, rattan and wooden furniture as their qualitycan easily be affected by temperature and environment conditions, he added.
The differences in developmentlevels between the logistics enterprises will create fierce competition. The EUfirms had very strong financial capacity and large market share in the worldlogistics market, Cuong said.
In order to meet the needs andrequirements of the European markets, Vietnam needs to seize developmentopportunities to soon become a logistics centre in Vietnam and in the region,creating breakthroughs in technology, resources, management skills, processesas well as making use of policy supports from the Government./.
Ta Hoang Linh, Director of theEuropean-American Markets Department under the Ministry of Industry and Trade,delivered the remarks at a seminar held in Hanoi on December 24.
Trade relations between the EUand Vietnam within the EVFTA framework will increase the transportation demandnot only between the EU and Vietnam but also between the EU and Southeast Asia,Linh said.
Besides transportation, demandfor warehousing services will also increase, thus we need to improve thequality of the transportation and warehousing, especially because Vietnam’s andthe EU’s logistics industry is developing at a different rate, Linh added.
Vietnam currently has almost1,500 logistics services providers. According to World Bank’s 2018 LogisticsPerformance Index (LPI), Vietnam ranked 39/160 countries. This result increased25 positions compared to the ranking of 64 in 2016.
Vietnam ranked 4th in ASEANafter Singapore, Malaysia and Thailand. In 2017, Vietnam announced a plan totransform the country into a regional logistics hub by 2025.
When the commitments takeeffect, the EVFTA can bring a great opportunity for Vietnam’s logisticsindustry.
Vietnam-EU trade relations havedeveloped at a rapid speed. From 2000 to 2018, import-export turnover hasincreased by more than 13 fold, from 4.1 billion USD in 2000 to 55.8 billionUSD in 2018.
During the period, Vietnam’s exportsto the EU soared from 2.8 billion USD to 41.8 billion USD, and imports from theEU to Vietnam jumped more than 10 times, from 1.3 billion USD to 13.89 billionUSD.
Linh also said liberalisationwould attract EU investors to take part in the provision of various logisticsand maritime transport services in Vietnam, including general cargo handling,container cargo, bulk cargo, liquid cargo, passenger ships, logistics services,warehousing and multimodal transportation.
Vietnamese logistics businesseswill have the opportunity to co-operate and learn from and call for capitalfrom multinational companies, Linh said.
According to Nguyen Canh Cuong,Vietnam trade counsellor for the EU and Belgium, besides opportunities,Vietnamese businesses will also face many challenges brought by the EVFTA.
Under the plans for dutyexemptions, with items such as food, pharmaceuticals, machinery and equipmentimported from the EU, the European businesses will require a secure logisticsand transportation system and stringent international standards and proceduresneed to be followed, he said.
Goods exported from Vietnamalso need better assurance on the quality of preservation and transportation,especially agricultural products, rattan and wooden furniture as their qualitycan easily be affected by temperature and environment conditions, he added.
The differences in developmentlevels between the logistics enterprises will create fierce competition. The EUfirms had very strong financial capacity and large market share in the worldlogistics market, Cuong said.
In order to meet the needs andrequirements of the European markets, Vietnam needs to seize developmentopportunities to soon become a logistics centre in Vietnam and in the region,creating breakthroughs in technology, resources, management skills, processesas well as making use of policy supports from the Government./.
VNA
