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Vietnam Logistics: 5 years after accession to wto (2007-2012)
Vietnam Logistics: 5 years after accession to wto (2007-2012)
Gửi ngày 16 tháng 1 năm 2012

It has been 5 years since Vietnam’s accession to the World Trade Organization (WTO). For the year 2008 was the time of global recession, the logistics service industry in the process of integration, like other industries, has experienced “gains and losses”.

And in the condition of global recession, the import-export turn-over has increased 1.6 times (the turnover in 2007 was 109.21billion dollars and in 2011,203.6 billion dollars), and the retail market has increased on average 20-25% a year, leading to the relative annual 20-25% increase in logistics service industry.

For a good review of the industry of Vietnam at the time of 5 years after accession to WTO, the industry should be studied in connections to all its related factors: infrastructure system, legal framework, logistics service providers, shippers and human resources.

Infrastructure

There have been many significant improvements, especially in seaport investment: there have been deep-sea ports with equipments and loading-unloading capacity of regional standards and in road system: developing connecting road systems from industry zones and cities to ports, developing the expressway systems, developing more inland-container depots (ICD), and developing logistics hubs, logistics zones, modern warehouse system, delivery centers… Although there have been limited outcomes due to the global recession, we have been in good preparation for basic conditions of a regional and even global logistics hub in the coming time.

Sea, road, waterway, air, rail road, tube transportation in important order are major means of transportation for import-export goods and retails in Vietnam market. And thanks to applying new method of investment as purchasing power parity (PPP), Vietnam has attracted logistics corporations’ and businesses’ investments in infrastructure in international standards. There have been so far 60 liners, 51 airlines and most of global logistics companies in TOP 25 providing services, and doing business in routes that connects Vietnam to the world outside.

Besides the fact that the logistics connecting programs in ASEAN and Greater Mekong Sub-region countries are taking effects, cross-border transportation activities to South-West corridor and to the Southern have had good results at initial stages. The amount of cargo through ports increased from 181 tons (in 2007) to 286 tons (in 2011) –increased

1.58 times; and the amount of container from 4.5 million TEU (in 2007) to 7 million TEU (in 2011) – increased 1.59 times, and air cargo businesses has experienced a similar increase in the condition of global crisis.

Information and communication technology has also been invested and therefore, it has developed to serve logistics activities, leading to the time-saving, and especially bringing adding values to Vietnam supply chain.

However there have still been many problems as the lack of synchronous investments, regionally higher logistics fee, shortcomings in planning, inaccurate predictions, especially we are facing with “knots” as traffic congestions, loading capacity limitation, long traveling time in cities, polutions or problems with information and procedures… leading to weak logistics activities and limited competition advantages of Vietnam supply chain.

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