Vietnam needs to have shipping lines to reduce logistic costs

The statement was made at a discussion on solutions promoting the logistics industry to take advantage of opportunities from the EU-Vietnam Free Trade Agreement (EVFTA) that was held by the Ministry of Industry and Trade, and the Industry and Magazine in Hanoi on September 22.

Logistics acts as a bridge to promote Vietnam’s import and export activities with the export growth rate of about 14 percent and more than 20 percent in the first eight months this year, said Mr. Ngo Chung Khanh, Deputy head of the Multilateral Trade Policy Department under the Ministry of Industry and Trade.

EVFTA is a new generation FTA that the country has a high rate of taking advantage of preferential treatments of the certificate of original (C/O). The high rate of taking advantage of preferential treatments of C/O in 2021 was about 14 percent and is expected to be nearly 25 percent in 2022, he added.

According to Mr. Tran Thanh Hai, Deputy head of the Export-Import Department of Ministry of Industry and Trade, after the EVFTA was signed, the volume of goods exchanged between Vietnam and the EU has sharply increased, especially textiles, footwear, and fishery. To deliver goods to EU countries at a reasonable cost and in a short time, the role of logistics businesses is very important. In Vietnam, businesses are mainly operated in the sector of delivery and support exporters to implement procedures for export shipment.

General Director of Danang Rubber Joint Stock Company, Le Hoang Khanh Nhut said that the expenses for logistics services accounts for a high rate of the total revenue of Vietnamese enterprises. Businesses have to look for transportation services to reduce manufacturing costs because Vietnam does not have shipping lines. The country must develop logistics centers at major ports and invest in shipping lines to logistic costs.