Due to the lack of own shipping companies, Vietnam’s exports are dominated by foreign shipping companies, which causes many difficulties for the exporters.
Speaking at the seminar themed “Solutions to Promote the Logistics Industry to Take Advantage of Opportunities of EVFTA” on September 22, Mr. Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department (Ministry of Industry and Trade), said that after two years of implementation of the free trade agreement between Vietnam and the European Union, the ability of companies to take advantage of the incentives of this agreement is increasing.
Exports to the EU market will grow by about 14% in 2021 and by about 15% in the first 8 months of 2022. According to Mr Khanh, the utilization rate of preferential C/O is about 14% in 2021, but in 2022, the occupancy rate is “nearly 25%”.
However, Mr. Le Hoanh Khanh Nhut, General Manager of Da Nang Rubber Joint Stock Company, said: Logistics costs are a huge expense when exporting to the EU.
EVFTA opens opportunities for Vietnamese exports. Photo: Hoang Ha
The lack of shipping companies in Vietnam makes Vietnamese exports dominated by foreign shipping companies, which creates many problems for the exporters.
“Especially in times like China’s blockade because of the Zero Covid-19 strategy, if we can’t maneuver empty containers, we won’t be able to proactively find ships, so we can’t control those costs,” Mr Nhut said.
Therefore, the Da Nang Rubber representative suggested that Vietnam also develop logistics centers in major ports to ensure the correct number of embarkations and disembarkations. In addition, Vietnam must also invest in shipping companies to maintain the initiative and thus master this game.
Recognizing that it is very difficult to compete in logistics with foreign giants such as DKL or Maersk, Mr. Mai Tran Thuat, Director of Supply Chain Solutions, Bee Logistics Group said honestly: “Temporarily, we are agents, called working with large companies as subcontractors. for them, to increase our presence for European companies and increase employment.”
Mr Tran Thanh Hai, deputy director of the Import-Export Department (Ministry of Industry and Trade), said that the EU is one of Vietnam’s traditional markets. When Vietnam signed a free trade agreement with the EU, the volume of traded goods also increased sharply. In particular, there are articles that have a large transport volume, such as textiles, footwear or seafood.
“To bring these items to the EU area at a reasonable price, time plays a very important role for logistics service providers,” said Mr Hai.
@ Vietnamnet
