In TPP logistics industry will boom

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In TPP logistics industry will boom

Joining TPP, Vietnam logistics industry development not only in the direction of production, but also have the opportunity to move further in the trading center of the world's shipping ...

According to the Association of Logistics, Vietnam 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, when the TPP was officially signed with thousands of tariff lines to 0% promise exciting growth 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 found a common language with the import and export business. The majority of logistics enterprises in Vietnam are small businesses, less 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 the Research Centre for Logistics Vietnam (VLI).

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

Ông Trần Chí Dũng – Giám đốc Trung tâm nghiên cứu Logistics Việt Nam (VLI).

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

Considering the extent of Vietnam is a country logistics. Vietnam has favorable conditions to develop the transport 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 rates the world's most dynamic.

Meanwhile, Vietnam is not only developed towards production, but also have the opportunity to move further in the trading center of the world's shipping. Since then likely become the center of trade and finance. This is 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 the average 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 logistics speed very fast updates.

In Vietnam, for several years now, the Government was interested in this sector and there are certain progress. But in general, transport costs as travel costs, transport, handling ... remains high; while the capacity of the logistics enterprises are limited.

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

Logistics is a fascinating industry. 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 potential competitive sector in the industry is also very intense. Themselves foreign enterprises have experienced competitiveness globally competitive should work 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 the owners of the business.

My personal experience shows that Vietnam now less ventured abroad. Connectivity between businesses, industry connections in the community, between the community sector with other sectors is not high.

For example auto industry development must entail spare parts sector, shipbuilding and other industries have led to ... Vietnam needs common handshake between businesses and sectors to make deeper connections global value chain.

The key issue is the need to plan and recognition of the value chain in the region and the world. Such Vietnam, Philippines, Indonesia ... may cooperate to minimize unnecessary competition. Philippines need rice, food ... from an agricultural country like Vietnam. However Vietnam can boost exports of agricultural products to the Philippines.

Rated as a potential market and a "delicious piece of cake" in Vietnam, but the pie is so foreign enterprises to master the game. What do you think about this?

Logistics market is not simply a problem to be - loss. The distribution market is also essential because it is the global connection. Transport costs account for a huge proportion of the total operating costs of the business, especially for international transport. Therefore, the market shares need to place in context the market deserves to have.

There is a reality to admit that current fields Vietnamese enterprises have not been entered. Such as the aviation sector is only 2 large carriers Vietnam Airlines and Vietjet Air; while the world has hundreds of airlines. For shipping, we also almost paralyzed when no other country carriers ...

Thus, the picture reflects the current market is honest and balanced with capacity and enterprise investment that Vietnam spent. To win back the "pie", now Vietnam should increase investment, and policies need timely support from the Government.

Thank you his share!

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