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Logistics industry faces challenges to integration
Domestic logistics companies have only a year to meet commitments to integrate into global transport services.
A report from the Ministry of Industry and Trade states that about 60 per cent of the country's commercial value is from logistics services, which make up between 15-20 per cent of GDP.
The Vietnamese logistics industry has attracted a number of foreign investors and there are currently close to 1,000 companies that have been established in the country.
These firms have under performed in the domestic market and in the international market, according to the report.
The Viet Nam Freight Forwarders Association (Viffas) says the Vietnamese logistics services have not yet fulfilled their potential.
The association says only 10 per cent of companies truly provide logistics services and the remainder just work for foreign companies, adding that a lack of transparency has impacted on competition.
According to Viffas, Vietnamese companies are only able to supply simple logistics services.
Marketing abilities are also noted as weak, lacking professionalism, the association says.
Due to these shortcomings, about 70 per cent of the market share was captured by foreign companies.
This figure may increase when the commitments to the World Trade Organisation to open the market to foreign transport service companies comes into effect in 2014, and similar commitments to ASEAN are instated in 2013.
Viffas has proposed to set up a national logistics committee and a logistic association to address these issues.
If a committee and association were established, the industry would have an official trade mark to mobilise capital and resources to compete in the domestic and international market, said association chairman Do Xuan Quang.
General Secretary of the Viet Nam Seaports Association Ho Kim Lan has a different idea.
According to Lan, improving the industry should focus on management skills and further investment.
He said such changes would allow the industry to build better distribution centres for key economic regions and develop container vessel teams to reduce costs and win a greater market share from foreign companies.
vietnamnews
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