It is considered that the industry is under the most pressure when EVFTA takes effect but if it knows the opportunities, Vietnam’s logistics industry will step into a higher development milestone.
More than 3 years ago, Bee Logistics Joint Stock Company prepared conditions to take advantage of opportunities from Vietnam – EU Free Trade Agreement (EVFTA).
Great opportunity
Receiving information about EVFTA which is about to take effect, sharing with Business Times, Mr. Dinh Huu Thanh, General Director of Bee Logistics, was pleased to say: “EVFTA effect means synonymous with the flow of goods between the EU and Vietnam increased, leading to customers’ demand for logistics more “.
“We provide our customers with advice to meet the fastest import and export conditions. In particular, the company also introduces customers when partners want to find buyers – sellers, in case 2. Meeting with each other, we will take care of transportation, “Thanh said. According to him, Bee Logistics has worked with the EU market since its establishment but to take advantage of EVFTA, businesses have a special” care “plan. specifically for EU customers.
Along with the service, Mr. Thanh said, this company almost digitized all logistics operations, serving the needs of customers fast and most quality.
Meanwhile, Mr. Russell Reed, CEO of UPS Vietnam and Thailand, said that EVFTA marked an important turning point in the process of becoming Vietnam’s trading power, and was the key to open the door. Strong economic potential of the country in the coming years.
Vietnam’s exports to the EU market have seen consistent growth over the years, with a total turnover of US $ 42.3 billion in 2018, averaging an average growth of 13% since 2014.
“As a leading provider of global logistics and logistics services, we recognize that EVFTA will facilitate our customers in increasing imports of staples from both. In addition, it helps to simplify procedures and encourage long-term sustainable investment as well as establish strategic partnerships, “Mr. Russell Reed said.
According to UPS, Vietnam is already a very competitive manufacturing and processing industry – one of the main contributors to the country’s economic growth. Along with economic growth is also a rapid expansion of the middle class – with a group of consumers aiming to integrate into the world and especially favoring purchases from imported international brands, in which have EU.
At the same time, a certain volume of Vietnamese exports to the EU is still being maintained. As a result, UPS has strengthened its service network of solutions to help Vietnamese businesses, especially in the retail and high-tech industries, maintain their competitive edge.
“Last year, UPS shortened shipping times on 2,300 commercial routes. This combined with other improvements to help shipments to the EU arrive 4 days faster. We have also expanded.” the access of UPS Worldwide Express Freight service to customers in many provinces and cities of Vietnam, providing assurance services, delivery of palletized shipments to export units, “said Mr. Russell Reed.
But it will be zero if you are late
Talking to Business Times, Mr. Nguyen Tuong, Deputy General Secretary of Vietnam Logistics Association, emphasized EVFTA is an opportunity for logistics industry to develop after the Covid-19 pandemic. In order to seize this opportunity, in recent years, members of the association have constantly expanded relations with partners in the EU such as Spain, Germany, the Netherlands …
At the forefront of EVFTA, many businesses have focused on technology development, improving the quality of human resources. As trade and investment develop, Vietnam’s logistics services will surely take off.
The opportunity that EVFTA brings to the logistics industry is very large but it is not meant for all businesses, because the opportunity always comes with challenges.
According to Mr. Dinh Huu Thanh, Vietnamese businesses see opportunities, European businesses will also see this. “EVFTA has not come into operation yet, European businesses have come to Vietnam a lot, without a well-developed development strategy, surely Vietnamese businesses will immediately lose a piece of market share at home,” Mr. Thanh worries.
In particular, Vietnam’s logistics industry is still young, according to Mr. Thanh’s assessment, the weakness of most Vietnamese businesses is the lack of long-term vision, lack of capital, outdated technology, and poor service quality.
Mr. Thanh shared: “Sometimes some enterprises still keep thinking of doing business and taking price as a competitive tool. However, for customers using logistics services, what they need is quality and reliability. However, the supply chain is more stable than the price advantage. “
Mr. Nguyen Tuong is concerned that European countries have higher logistics qualifications than Vietnam. Therefore, it is difficult for Vietnamese enterprises to win orders, especially when international manufacturers and investors have a connection with logistics service providers in the EU, while Vietnamese export enterprises mainly export under the FOB method. . If we don’t know the opportunities, Vietnamese businesses will not gain an advantage.
According to the Center for WTO and Integration (VCCI), the EU is very strong in logistics, with multinational companies, large modern fleets, accounting for a significant market share in the world logistics market. In the World Bank’s Logistics Capacity Index (LPI) in 2018, Germany ranked first, EU countries accounted for four of the top five positions (Germany, Netherlands, Sweden, Belgium). .
Currently, many strong logistics enterprises of EU have had business activities in Vietnam, although Vietnam’s opening level in logistics is limited. After EVFTA, with the commitment to open up stronger, the competition from these businesses with Vietnamese businesses will be even greater.
In the face of the fact that many businesses are still blurred, the Vietnam Logistics Association said that the Government has many measures to support information, answer the benefits of opportunities and challenges for logistics enterprises. , rather than holding general workshops and trainings.
“To take advantage of the preferential tariffs from the EU market, Vietnamese products must meet the rules of origin, otherwise all opportunities are equal to zero,” Mr. Xiang emphasized.
In addition, the Government needs to quickly issue relevant legal documents so that EVFTA will be implemented soon after being approved by the National Assembly.
From the enterprise perspective, Bee Logistics representative wanted the Government to support businesses by promoting the movement of Vietnamese people to use Vietnamese goods, when bidding for public projects, it is necessary to encourage domestic logistics enterprises to participate, instead of choosing enterprises. foreign companies or FDI enterprises in Vietnam.
Ms. Nguyen Thi Thu Trang, Director of WTO and Integration Center, recommended businesses to be aware of EVFTA’s commitment to opening logistics services to identify new risks in competing with EU competitors in the market. Vietnam logistics market or opportunities for cooperation with EU partners.
At the same time, there are methodical plans, drastic actions in improving service quality, professionalism, methodical service delivery, customer care.
Along with that, the State needs and should deploy to promote the development of logistics services for freight transport, continue to review and cut unreasonable logistics costs.
