[NEWS] – Improve logistics capacity to accelerate exports to the EU

Vietnam-EU trade has grown quite positively after more than 2 years of implementation of the EU-Vietnam Free Trade Agreement (EVFTA). However, to reduce the pressure on logistics costs and speed up exports to the EU, in the coming time, more attention should be paid to solutions to improve competitiveness for logistics service enterprises in particular and the logistics industry in general.

EU logistics enterprises dominate

EU is one of the traditional markets of Vietnam. Deputy Director of the Import-Export Department (Ministry of Industry and Trade) Mr. Tran Thanh Hai assessed that, after the EVFTA took effect, the volume of trade in goods exchanged between Vietnam and the EU increased a lot, especially in Goods with a large volume of transportation are textiles, footwear, and seafood.

Mr. Tran Thanh Hai further analyzed that in Vietnam-EU trade relations, long-distance geographical distance is also a potential problem. In general, logistics enterprises make an important contribution to promoting bilateral trade activities. However, when analyzed carefully, it can be seen that in this relationship EU logistics enterprises have the advantage of large-scale and long-term operating experience.

According to some experts in the logistics industry, the difference in capacity makes Vietnamese logistics enterprises fierce competition with EU logistics enterprises, which are very strong and occupy a significant market share in the world logistics market. Many strong EU logistics enterprises have business operations in Vietnam such as DHL Group, Kuehne + Nagel, DB Schenker, and Maersk...

Direction for Vietnamese shipping and logistics enterprises

Experts said that the Vietnamese logistics industry not only faces competition with EU logistics enterprises, but Vietnamese enterprises themselves will also compete with each other to win goods.

To support and promote the development of the logistics industry, from the perspective of state management agencies, Mr. Tran Thanh Hai informed that the Government, ministries, branches, and localities have also paid great attention in the past time.

“We see very big changes in areas such as infrastructure, especially transport infrastructure through the expansion of more roads, the construction of new highways, seaports, and airports. new flight…. Shortly, the Ministry of Industry and Trade will develop a strategy for developing logistics services with a longer-term vision than the previous action plan; lay the foundation to support Vietnam’s logistics enterprises, moving forward to help import-export enterprises reach out to the world market better," said Mr. Hai.

Despite facing many difficulties in the past 2 years, thanks to the positive impact of the EVFTA Agreement, the two-way trade turnover between Vietnam and the EU has grown quite positively. In 2021, Vietnam’s exports to the EU will increase by 14% compared to 2020; In the first eight months of 2022, exports increased by over 20% over the same period last year. Notably, the EVFTA is one of the new-generation FTAs ​​with a rather high rate of taking advantage of preferential Certificates of Origin (C/O). In 2021, the rate of taking advantage of preferential C/O is about 14% of export turnover. The number of taking advantage of preferential C/O from the beginning of the year until now is about 25%.

The limitations that Vietnamese enterprises exporting to the EU in general and Logistic enterprises, in particular, are facing. Indochina Holdings would like to introduce to you business promotion services. With a team of professional consultants and partners of Indochina Holdings in the EU, we are ready to answer the difficulties that businesses are concerned about, thereby offering appropriate strategies to help businesses successfully export goods. through the EU.

Thanh Long