Deputy PM works with WB Country Director
Deputy PM Vuong Dinh Hue had a meeting with WB Country Director Ousmane Dione on trade facilitation, logistics development, and national single window implementation on June 26 in Hanoi.
Weak transport system
WB experts proposed Vietnam build legal framework on trade facilitation, improve trade infrastructure and connectivity quality, build competitive logistics service sector, and enhance interdisciplinary coordination and cooperation with the private sector.
Chief economist Sebastian Eckardt from the WB in Vietnam suggested Vietnam take action to make synthetic impacts on logistics value chain. “Highways are not enough. If goods are still stuck at border gates and ports, infrastructure is inadequate. Hence, trade facilitation at border areas and enhancement of inland connectivity-logistics are of great significance,” the Chief economist added.
He recommended the Government and agencies review all procedures on environmental safety and labor sanitation; and introduce explanatory mechanisms of customs agencies to the society and enterprises.
The WB experts lauded Vietnam’s effort to strengthen transport connectivity, but blamed multi-modal transport conditions which failed to catch up with national development demands. So far, Vietnam is facing with a challenge in which the amount of goods grows faster than GDP growth pace and the quantity of transported products increases quicker than infrastructure development.
In the 2016-2020 period, the Ministry of Industry and Trade forecast that Vietnam needs around US$ 24 billion for transport development. However, the State was able to provide only US$ 8 billion. The WB proposed the Government mobilize private source, trade, and credit to offset the shortage.
The WB also pointed out weaknesses of Vietnamese logistic providers. Only 41% of SMEs are qualified.
Attaching importance to logistics development
Deputy PM Vuong Dinh Hue stressed that Vietnam gives a priority to logistics development towards regional and international practices and standards with a view to cutting costs for enterprises.
According to Mr. Hue, in transport field, Vietnam is focusing on road and railway in North-East axis without taking interest in East-West connectivity and coastal transport.
The Deputy PM said that the Government would call on private enterprises to engage in PPP modal in infrastructure development and interdisciplinary inspection on exports and imports.
Weak transport system
WB experts proposed Vietnam build legal framework on trade facilitation, improve trade infrastructure and connectivity quality, build competitive logistics service sector, and enhance interdisciplinary coordination and cooperation with the private sector.
Chief economist Sebastian Eckardt from the WB in Vietnam suggested Vietnam take action to make synthetic impacts on logistics value chain. “Highways are not enough. If goods are still stuck at border gates and ports, infrastructure is inadequate. Hence, trade facilitation at border areas and enhancement of inland connectivity-logistics are of great significance,” the Chief economist added.
He recommended the Government and agencies review all procedures on environmental safety and labor sanitation; and introduce explanatory mechanisms of customs agencies to the society and enterprises.
The WB experts lauded Vietnam’s effort to strengthen transport connectivity, but blamed multi-modal transport conditions which failed to catch up with national development demands. So far, Vietnam is facing with a challenge in which the amount of goods grows faster than GDP growth pace and the quantity of transported products increases quicker than infrastructure development.
In the 2016-2020 period, the Ministry of Industry and Trade forecast that Vietnam needs around US$ 24 billion for transport development. However, the State was able to provide only US$ 8 billion. The WB proposed the Government mobilize private source, trade, and credit to offset the shortage.
The WB also pointed out weaknesses of Vietnamese logistic providers. Only 41% of SMEs are qualified.
Attaching importance to logistics development
Deputy PM Vuong Dinh Hue stressed that Vietnam gives a priority to logistics development towards regional and international practices and standards with a view to cutting costs for enterprises.
According to Mr. Hue, in transport field, Vietnam is focusing on road and railway in North-East axis without taking interest in East-West connectivity and coastal transport.
The Deputy PM said that the Government would call on private enterprises to engage in PPP modal in infrastructure development and interdisciplinary inspection on exports and imports.
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