Taking advantage of the World Logistics Passport program in Vietnam

VCN - World Passport Logistics (WLP) is the first and only global cargo and logistics loyalty program sponsored by the UAE Government/Dubai government to connect members globally.
The WLP network currently accounts for 47% of global trade. Photo: H.Diu
The WLP network currently accounts for 47% of global trade. Photo: H.Diu

The World Logistics Passport (WLP) is a global initiative of the Government of the United Arab Emirates (UAE)/Dubai government by the Chairman of the Executive Council of Dubai - Crown Prince of Dubai Shaikh Hamdan Bin Mohammad approved on March 2, 2019 and officially started on October 13, 2019.

This initiative was announced by the UAE Ministry of Economy and officially introduced at the 50th Davos World Economic Forum, in Switzerland in January 2020 with the participation of many countries including Vietnam.

WLP is built to reduce non-tariff barriers in international trade by reducing the time and cost of operating logistics services. The WLP network spans over 48 countries on all continents and over fifteen trade corridors in the global supply chain. WLP network currently accounts for 47% of global trade turnover with 121 partners, including customs of countries - the agency assigned to sponsor, and preside over the implementation of preferential policies for WLP members.

Since May 2021, Vietnam has become one of 29 members (hubs) of WLP through a memorandum of cooperation from the Vietnam Logistics Association (VLA) with WLP under the support of the Ministry of Industry and Trade and the Embassy of Vietnam in the UAE, paving the way for Vietnam's logistics ecosystem to participate in the global logistics ecosystem as well as the network of members of WLP.

With its strategic location as a regional transshipment and manufacturing hub and potential for trade growth, Vietnam has been selected as an important member of the WLP network, helping to increase trade efficiency and global supply chains.

22 enterprises providing logistics services in Vietnam have registered to participate as members of the WLP program. Accordingly, products and goods of Vietnamese enterprises when granted WLP by the UAE will be facilitated and supported in terms of customs clearance, air tax exemption, reduction of inspection time and loading on fast and free means of transport, reducing storage time by up to 48 hours, goods can be cleared before reaching the port, thereby saving time and 40% of operating costs.

Currently, a number of ports in the UAE are exempting taxes and fees for goods with WLP passports, goods passing through the Dubai Silk Road will save money on storage; they can move goods smoothly from the place of origin to the destination. The UAE is Vietnam's largest trading partner in West Asia, with its main products being electronics and components, machinery and equipment, footwear, textiles, vegetables, pepper, and rice.

According to the Ministry of Industry and Trade, in 2022, Vietnam's trade surplus with the UAE will reach US $3.3 billion. With these advantages, Dubai Customs is expecting goods traded from Vietnam to new markets to increase from 0.5% to 27%.

Vietnam as well as other member countries will have the participation of core partners such as Customs, seaport and airport operators, logistics associations, airlines and enterprises in industrial parks, export processing zones, and inland ports.

The WLP loyalty program is based on a partnership between merchants, freight forwarders and local organizations to provide additional trade facilitation. Scoring and ranking, and membership levels for both Vietnamese and foreign traders will be done transparently on a digital platform.

It is known that global corporations such as Samsung, Apple, Foxconn are default members (platinum level) of this program.

On March 1, 2023, in Ho Chi Minh City, the Vietnam Logistics Business Association (VLA) will coordinate with the World Logistics Passport Program (WLP) and the Embassy of the United Arab Emirates (UAE) organizes the "Signing Ceremony and Launching Forum of the World Logistics Exhibition Program (WLP) in Vietnam".

By Huongdiu/Quynhlan

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