Logistics has grown 24 percent annually. (Source: VNA)

Hanoi (VNA) – Logistics and supply chain management have significantly improved in recent years thanks to the Government’s policies as well as the perception of entrepreneurs, according to the Vietnam Logistics Business Association (VLA).

The logistics sector has enjoyed annual growth rate of 24 percent in recent years, Do Xuan Quang, VLA Deputy Chairman said at a conference held in HCM City on June 1 to introduce the TILOG-LOGISTIX 2016 exhibition.

Recently, the Government has added several institutions to promote logistics development, more investment in ports, highways and airports as well as electronic customs.

It has implemented drastic cuts in administrative procedures, costs and time to facilitate cross-border trade and establish a national single window procedure toward an ASEAN single window, he said.

Many Vietnamese logistics providers have made investments in human resource, technology and management skills. As a result, their competitiveness has significantly improved compared to five to 10 years ago, he said.

But their preparations for the ASEAN Economic Community and ASEAN+6, which includes ASEAN and six countries, the Republic of Korea, Japan, China, Australia, New Zealand and India, have been insufficient compared to their Thai counterparts, he said.

Vietnam will need more sophisticated logistics infrastructure and services, strong global transportation networks and, especially, value-added logistics solutions, he said.

The TILOG – LOGISTIX 2016 will provide good opportunities for Vietnamese logistics providers to update hardware and software logistics services that they lack now, Quang said.

Duangrat Udomsomporn, senior manager portfolio of Reed Tradex Co, Ltd., said the event can increase logistic opportunities for Vietnamese entrepreneurs through business networking and best practices in logistics and supply chain management.

This would result in more competitive international trade and regional development.

Organised by the Department of International Trade Promotion and Reed Tradex from September 21 to 23 in Bangkok, the exhibition will showcase the most diverse range of logistics technology and equipment, she said.

Cooperation opportunities

At the event Vietnamese and Thai experts discussed the strengthening of cooperation between the logistics sectors of Vietnam and Thailand.

Visarn Chansate, President of the Thai Logistics Provider Federation, said the economic development brought by AEC will increase demand for logistics services in Thailand to the region, especially cross-border trade and transit trade.

Vietnam is a destination for investors in ASEAN+6, while Thailand is a hub for connectivity. Both countries can be partners to promote the competitiveness of the logistic industry, he said.

Quang said that, when managed effectively, the regional logistics sector would help reduce the cost of transportation of goods throughout the region, create faster and more efficient transport routes, and contribute greatly to the development of the ASEAN economies.

Logistics and transportation collaboration within ASEAN is playing a crucial role, according to Pittinun Samanvorawong, Director of Thai Trade Centre and Commercial Consul in HCM City.

ꦿ She said that collaborations between Thailand and Vietnam would enhance the effectiveness of the logistics sector.-VNA