Developing logistics into a service industry with high added value

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Traffic jams in and out of ports are one of the reasons for increasing logistics costs. Photo: T.H
Traffic jams in and out of ports are one of the reasons for increasing logistics costs. Photo: T.H

The resolution stated: In 2021, the world situation was complicated and unpredictable. The 4th outbreak of the Covid-19 pandemic in our country has dramatically affected enterprises’ production, business, and goods circulation. In that context, the Government and ministries, branches and localities have promptly issued many policies related to logistics, on the one hand ensuring the role of logistics in maintaining the supply chain of goods and services; on the other hand, shaping new and breakthrough directions for Vietnam’s logistics industry, contributing to relieving pressure during the period of social distancing because of the pandemic, promoting recovery and sustainable economic development of the country.

Despite many difficulties and challenges, Vietnam’s logistics industry has achieved positive results, such as: continuing to improve the legal and institutional framework for logistics, enhancing the role of the logistics industry in the national economy according to the orientation of the Resolution of the 13th Party Congress, and make many positive contributions to economic activities, especially import and export, making export activities a bright spot.

Besides the achieved results, although logistics activities of Vietnamese enterprises have favourable development, they have not fully exploited the geo-economic advantages and have not been commensurate with the potential of each locality; the infrastructure for logistics activities as well as the connection between commercial infrastructure, transport infrastructure, and information technology infrastructure both in the country and in the region was not high. Therefore, the efficiency of logistics activities still has many problems.

In the coming time, the world and the region will continue to be complicated, unpredictable, and difficult to predict, especially the Ukraine conflict’s impact. The resilience of the world economy is more complex. The growth forecast in 2022 is lower than in 2021. Risks in the financial market and international currency increased, inflation pressure, raw material prices, petroleum, and many other essential commodities increased. The situation of the Covid-19 pandemic is still complicated. Meanwhile, climate change, natural disasters, storms and floods, and extreme weather are increasingly unpredictable, greatly affecting production and life.

In that context, the Government requested the Ministers, Heads of ministerial-level agencies, Governmental agencies, and Presidents of People’s Committees of provinces and centrally-run cities to perform synchronously, consistently, timely, and effectively the tasks and solutions in the Resolutions of the Central Committee, the National Assembly, the Government, and the direction of the Prime Minister, Decision No. 221/QD-TTg dated February 22, 2021, of the Prime Minister amending and supplementing Decision No. 200 /QD-TTg dated February 14, 2017, on approving the Action Plan to improve competitiveness and develop Vietnam’s logistics services until 2025 and Resolution No. 11/NQ-CP dated January 30, 2022, of the Government on the program of socio-economic recovery and development to help the economy overcome difficulties, reduce logistics costs to meet the operation of the economy in the new period, not miss the pace with the process of global economic recovery. Simultaneously, create a foundation and favourable conditions for developing logistics services in particular and the economy in general for the period up to 2025 and the following years.

Focus on improving the competitiveness of logistics enterprises

The Government uniformly directs ministers, heads of ministerial-level agencies, government-attached agencies, and chairmen of People’s Committees of provinces and centrally-run cities to promote the synchronous implementation of the main views, tasks, and solutions to improve competitiveness and develop Vietnam’s logistics services.

The view is to develop logistics services into a service industry with high added value, linking logistics services with the development of goods production, import and export and domestic trade, and development of transportation infrastructure and information technology; developing the logistics service market, focusing on improving the competitiveness of logistics service enterprises; making the most of its geographical advantages, strengthen connectivity to make Vietnam an important logistics hub in the region; and developing logistics associated with sustainable supply chains, improving the quality of human resources, and promoting digital transformation and technology application.

Accordingly, the ministers, the heads of the ministerial-level agencies, the agencies attached to the Government, and the presidents of the People’s Committees of the provinces and centrally-run cities, according to their assigned functions, tasks, and powers based on the Program of the Central Committee, the Politburo, the Secretariat, the National Assembly, the National Assembly Standing Committee, the Government, focus resources, urgently implement the tasks assigned in Decision No. 221/ QD-TTg ensuring quality and schedule according to regulations; proactively handle arising problems according to their competence or report them to competent authorities as prescribed, take full responsibility before the Government and the Prime Minister for ensuring the progress and quality according to the set requirements.

The Ministries of Industry and Trade, Transport, Finance, and related agencies closely monitor the international and regional situation and promptly analyze and assess the impacts affecting our country’s economy. On that basis, proactively develop scenarios, and response plans, direct and operate logistics activities to well-serve production, domestic goods circulation, and import and export activities.

Ministries, sectors, and localities are responsible for firmly grasping the situation, promptly detecting and immediately handling problems arising in logistics activities that adversely affect the socio-economic situation within the scope and field of state management.

The Ministry of Industry and Trade urges ministries, branches, localities, and associations to synchronously and drastically implement solutions, mechanisms, and policies to implement synchronously and effectively the Action Plan to improve competitiveness and develop Vietnam’s logistics services by 2025 according to Decision No. 200/QD-TTg and Decision No. 221/QD-TTg.

Towards the development of green logistics

The Ministry of Transport will host and coordinate with ministries, branches, and localities in implementing transport components in national and regional master plans and provincial plans, ensuring the synchronization of transport infrastructure to develop the logistics service industry and be suitable for logistics centres, inland ports, and bonded warehouses in a unified whole.

Strengthen connectivity, rationally develop modes of transport, and maximize multimodal and cross-border transport to reduce costs and improve the quality of transport services. Develop a freight trading floor associated with e-commerce towards green logistics development.

The Ministry of Finance continues to review and remove obstacles on tax policies, fees, charges, and service prices to facilitate enterprises to provide logistics services; host and coordinate with ministries and branches in promoting trade facilitation activities, reforming customs procedures, reducing and simplifying specialized inspection procedures, standardizing dossiers, and implementing commitments in the WTO Trade Facilitation Agreement.

The Ministry of Finance will balance and arrange recurrent expenditures in the annual State budget estimate according to the current state budget decentralization and the provisions of the Law on State Budget and guiding documents so that ministries and central agencies can implement logistics tasks within the scope of spending from the State budget.

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