Binh Duong currently has about 50 logistic enterprises, with 21 bonded warehouses, 4 CFS warehouses, 2 ICDs and 31 customs branches for logistic services of export-import enterprises. Many logistic companies have very good capacity, contribute positively to the economic development of the province.
To resolve difficulties
Decision No. 200 / QD-TTg dated February 14, 2017 of the Prime Minister on the approval of action plan for enhancing competitiveness and development of Vietnam logistic services by 2025 (referred to as Decision 200), which aims to reduce logistic costs, thereby contributing to improving the competitiveness of trade in particular and the economy in general. This will require Binh Duong logistic enterprises to work with domestic and foreign enterprises to expand their business scale, capacity to provide logistics services; and fulfill set out targets in Decision 200.
Cargo operations at Tan Cang Song Than Logistic Center.
A good news is that, due to recommendations of Vietnam Logistics Association, on August 8, 2017, the Prime Minister assigned Ministry of Industry and Trade to assume the prime responsibility and coordinate with concerned agencies in inspecting and timely removing difficulties related to logistic services. This move of the Government will continue to open opportunities for logistic enterprises in the province.
In the current trend of integration and competition, cutting costs to increase competitiveness of products is an urgent requirement to enterprises. According to business leaders in Binh Duong, logistic services (transportation, warehousing, receiving and delivering, customs procedures, insurance ...) greatly affect the competitiveness of products, but logistics costs in our country are still too high. This has led to the fact that many domestic importers and exporters are subject to high fees, reducing the competitiveness of Vietnamese products in the international market.
However, on the side of enterprises, nowadays, logistic enterprises in Binh Duong have not really found a common voice with import-export enterprises; have not created cohesion to promote the development of the general business community in the province. Explaining this issue, leaders of many logistics companies said that the linkage between manufacturing enterprises, import-export enterprises and logistic enterprises was not tight, because most enterprises are still small and do not have the link and specialization in terms of each strength group. Therefore, these enterprises have no conditions for regular long-term cooperation, forming a complete supply chain, meeting the needs of import-export enterprises.
Linkage for development
Nguyen Thi Hong Tuan, Director of Phuong Nam Trading and Services Company, said that logistic companies in Binh Duong were developing rapidly, from traditional operations such as transportation, warehousing... now developing integrated services with high added value. However, the capacity of logistic enterprises is not uniform; Some small businesses have simple services, discrete and unconnected activities. At present, there are 50 logistic companies in the whole province. The main activities of small enterprises are just delivery, transportation, warehousing, seaport, loading and unloading services... Instead of labor division according to specializations between logistic enterprises, these enterprises still operate separately and do all stages in the logistic service chain. Therefore, the provided services are often insufficient for specialization; leading to low quality, not fully meet the needs of customers.
In addition, a large problem is the lack of professional logistic staff. Therefore, most logistic companies in Binh Duong are also responsible for the training of human resources through real works.
At the meeting to establish Binh Duong Logistic Association organized by Department of Industry and Trade, business representatives hoped that the association would create a close relationship with the authorities, like Department of Transport, Department of Industry and Trade, Department of Planning and Investment, Department of Customs... Since then, businesses have good conditions to make comments, suggestions on relevant legal documents, report timely difficulties of enterprises to solve the problem, create a close link with provincial industries’ association.
According to Nguyen Van Huu, Deputy Director of Department of Industry and Trade, logistic activities are always linked with import and export activities; and the potential of import and export goods of Binh Duong is very large. The establishment of Binh Duong Logistic Association would enhance the supporting role to members in guiding and fostering employees; at the same time, having a representative voice to management agencies to develop provincial logistic industry. Industry and Trade sector is supporting the construction, perfecting legal framework, standardization process for Binh Duong Logistic Association, which will be launched in June 2018 as scheduled. This is a condition to promote logistic enterprises in Binh Duong to develop and better match the role of connecting enterprises in the province.
Reported by Tieu My – Translated by Ngoc Huynh
