2017: eventful year for Vietnam logistics sector

2016 was a lucky year for Vietnam’s logistics industry which saw LPI (logistics performance index) on WB’s list falling dramatically by 16 grades from 48th to 64th among 160 ranked economies.

The drop, according to the World Bank’s Vietnam Country Director Ousmane Dione, showed that Vietnam was losing its competitiveness.

Analysts said the PM’s Decision 200 created a good star for Vietnam’s logistics in 2017.

In May 2017, at a workshop held in Hanoi, the representative of EuroCham commented that Vietnam made significant progress in reforming administration & tax procedures.

Over 90% of businesses said they felt satisfied with access to information about customs procedures through customs agencies’ information channels.

In the next step, in July 2017, Vietnam launched the trade information portal, which is expected to improve the predictability and transparency of the laws and procedures related to trade.

The portal provides the business community with information about laws, regulations and legal procedures for import/export activities.

This is the 10th task mentioned in Decision 200 and the first task which was implemented on schedule.

At 2017 Vietnam Logistics Forum, the 2017 Vietnam Logistics Report was released and the official website for Vietnam’s logistics was inaugurated at www.logistics.gov.vn.

Also at the forum, the Vietnam logistics training network of universities and training establishments which provide courses on logistics took shape.

Analysts said they can see that solutions to help develop the logistics industry are no longer ‘on paper’.

On December 18, a conference on developing logistics in transport in the Mekong Delta and a forum on developing international markets for Vietnam’s vegetable and fruit industry were organized.

However, analysts pointed out that two important missions in Decision 200 could not be completed as planned.

The first was the amendment of Decree 140 which stipulates business conditions for logistics service providers. The draft document to replace the decree is still facing criticism from the Vietnam Logistics Association (VLA).

The second was adjusting policies on taxes, fees and surcharges with an aim to force the road toll and port service fees down.

The road toll collected at BOT (build, operation, transfer) stations remains a hot topic, while many foreign shipping firms have set higher fees on a number of services.