Logistics sector urged to seize upon FTA opportunities

Wednesday, June 30, 2021  17:12

VOV.VN - Vietnam’s participation in several new-generation free trade agreements (FTAs) will serve to create greater opportunities for the development of the local logistics sector, according to industry insiders.

Experts emphasised that domestic firms have been urged to improve their capital size, management capacity, and business scope, especially by taking full advantage of plenty of opportunities to partner with international investors.

Nguyen Thi Thu Trang, director of the Vietnam Chamber of Commerce and Industry's WTO and Integration Centre, said that logistics remain one of the country’s fastest growing and stable industries, recording an average annual growth rate of between 14% and 16%.

The openness of the Vietnamese economy when participating in 13 FTAs, especially new-generation FTAs such as the EU-Vietnam FTA (EVFTA), is anticipated to promote the export of goods whilst simultaneously accelerating the development of the local logistics industry, she said.

Nguyen Duy Minh, general secretary of the Vietnam Logistics Business Association (VLA), said the nation is home to roughly 3,000 local and multinational companies which provide various types of logistics services.

Manh also assessed that multinational companies tended to hold advantages over Vietnamese logistics enterprises through signing contracts with large shipping lines, applying information technology in logistics activities, achieving advanced management, and successfully establishing strong relationships with global shippers.

Despite these factors, domestic logistics businesses are able to compete against foreign firms thanks to their ability to utilize port and warehouse systems, making the most of a skilled workforce and customs clearance agents, along with the enforcement of FTA commitments.

Furthermore, up to 90% of Vietnamese seaports are operated by domestic firms, which can help them to provide all forms of logistics services for foreign businesses, thereby enhancing their competitiveness with regional countries.

Moreover, the Government also affirms their determination to develop strategies and formulate policies aimed at supporting the logistics industry, with priority being placed on upgrading infrastructure facilities as a means of meeting the sector’s increasing demand for stronger development.

VOV