Speaking at the European Regional Trade Counselor Conference held in Italy, Mr. Nguyen Anh Son - Director of the Import-Export Department (Ministry of Industry and Trade) said, In recent years, the logistics service industry has made significant contributions to import and export activities, making Vietnam an important link in the global supply chain. Import and export activities have become a bright spot due to the outstanding growth rate compared to the previous period. Vietnam's total import and export turnover increased from 428.1 billion USD in 2017 to 681.1 billion USD in 2023 with an average growth rate of about 8.4%/year for the entire period of 2017 - 2023.
In 2023, the total two-way trade turnover between Vietnam and Europe (including the EU and non-EU) will reach 71.15 billion USD, down approximately 4.4% compared to 2022 (74.28 billion). Of which, Vietnam's export turnover to Europe will reach 52.22 billion USD, down 4.7%; Vietnam's import turnover from Europe will reach 18.93 billion USD, down 2.7%.
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| Mr. Nguyen Anh Son - Director of the Import-Export Department spoke at the European Regional Trade Counselor Conference |
In recent years, Vietnam has been transforming itself to become a major global manufacturing hub. Vietnamese enterprises have produced a wide variety of goods, competitive in price and increasingly improved in quality. At the same time, after the pandemic as well as recent geopolitical and economic instability, many corporations, retail and wholesale distribution channels are promoting diversification strategies, ensuring sustainable supply and have chosen Vietnam as one of the strategic locations in the global supply chain.
However, according to the Director of the Import-Export Department, Vietnam's import-export activities have grown again but have continuously encountered difficulties with the unstable situation in the Red Sea, the Russia-Ukraine war, the tense Israel-Iran relationship spreading in the Middle East region and a number of other unpredictable unstable factors that have caused shipping rates and surcharges to skyrocket, the shortage of empty containers and congestion at some major international transit ports really need targeted and practical support solutions to support the import-export and logistics activities of Vietnamese enterprises.
In this context, to reduce the negative impact of the unstable geopolitical situation affecting import-export activities and freight transport from Vietnam to the EU in order to maintain a sustainable supply chain, the leaders of the Import-Export Department have suggested a number of solutions, as follows:
One is to stabilize freight rates and maritime surcharges.
Shipping lines strictly comply with the provisions of Vietnamese law, especially the provisions on listing and publicizing freight rates. Do not impose unfounded fees and surcharges with excessively high rates, affecting import and export activities. Strengthen supervision of maritime transport businesses and providers of containerized cargo transportation services by sea to list prices and surcharges outside the price of containerized cargo transportation services by sea in compliance with regulations.
Strengthen management of seaport and shipping activities, support import-export enterprises during the period of high freight rates. Actively work with industry associations, logistics associations, cargo owners associations, ship owners associations to improve capacity, gather member enterprises to build production and business plans, transportation plans, import-export plans as a basis for signing long-term contracts with shipping lines, minimizing the impact of freight rates and surcharges during the current period of complex and unpredictable developments in the international market.
Second, freight flow and alternative routes
In addition to the current sea route, import-export businesses with Europe can consider alternative routes, for example, a railway route from Vietnam through China, Russia, Belarus to Europe. Or consider a combined multimodal transport route, going by sea to ports in the Middle East, then by air, rail or road to Europe.
Third, increase the utilization of incentives of FTAs.
With its multilateral and open foreign policy, Vietnam is becoming one of the most open economies, one of the world's major commodity production centers with 17 FTAs being implemented, including EVFTA and UKVFTA. However, the rate of utilisation of FTA incentives is not yet commensurate with its potential. Promoting the diversification of priority supply sources from FTA partner countries and international treaties is very important. Ministries, departments and branches need to increase the reduction of administrative procedures, simplify and digitise specialized inspection procedures, enhance trade facilitation to increase the rate of utilisation of FTAs in import and export activities of Vietnamese enterprises with Europe. Organize many conferences and seminars to promote and disseminate incentives related to EVFTA and VUKFTA.
Fourth, resolve backlog of goods and procedures for import and export goods.
The work of handling backlog goods to clear warehouses for seaports has been a long-standing problem. The arrangement of funds for handling backlog goods has encountered many difficulties, the procedures are lengthy and there is no regular funding source. It is necessary to speed up the progress of handling backlog goods, and at the same time, add regulations allowing port enterprises to temporarily advance funds to handle backlog goods at ports and recover them after completing the liquidation of backlog goods.
Fifth, support training and improve the capacity of negotiating sales contracts and insurance contracts for small and medium enterprises.
Strengthening propaganda and improving the capacity of small and medium-sized import-export enterprises in negotiating and signing foreign trade contracts and insurance contracts to protect enterprises from risks and losses in case of incidents, especially for sea cargo passing through routes affected by complex and unpredictable incidents today.
Sixth, develop a prevention and rapid response plan.
State management agencies, associations and import-export enterprises proactively develop prevention and response plans to minimize risks and losses from similar complex and unpredictable incidents in the future.
Develop emergency response plans, diversify supply sources and transportation routes to minimize risks. Develop a strategy to diversify the supply of raw materials and fuels for the economy by industry and sector; gradually eliminate dependence on a few markets, in order to maintain production when supply chain disruptions and geopolitical instability occur.
Seventh, improve the mechanism for managing port prices and surcharges to strengthen the mechanism for managing prices of surcharges at Vietnamese seaports.
Eighth, adjust the development planning and overall strategy for production and business of each region, industry and field when there are adjustments to the connotation of economic freedom, globalization, global supply chains, the return of protectionism and unpredictable uncertainties occurring with greater frequency.
At the same time, it is necessary to build and effectively implement the Strategy of independence and autonomy of the economy, in order to enhance resilience and competitiveness; adapt flexibly and effectively to fluctuations in the international, regional and domestic situation. Remove difficulties and obstacles in mechanisms and capital to develop a fleet of sea transport with sufficient capacity to participate in the long-distance transport segment, reaching out to the continents, in line with international maritime transport trends.
Nine, international cooperation
Strengthen international cooperation with European partners to share information and technology, and jointly develop sustainable standards and regulations.
Build a team of regulatory compliance experts and work closely with regulatory agencies to ensure full compliance with standards. Strengthen international cooperation agreements for certification, accreditation and consulting organizations on standards, product quality and food safety.
Tenth, high technology applications
Use artificial intelligence (AI) and machine learning to predict and manage risks in the supply chain. Provide financial support and skills training programs to help businesses easily access and adopt new technologies.
Provide financial support and skills training programs so that businesses can easily access and adopt new technologies.
Eleven is green infrastructure development
Build green infrastructure such as warehouses that use renewable energy, water recycling systems, and efficient waste management.
Twelve is human resource training and development.
Research and prepare the basic conditions of material and labor force to anticipate, participate in and develop new types of products and services in the trend of changing global supply chains. Invest in training employees on sustainable supply chain management and technological skills to increase efficiency and sustainability.
Provide financial support and skills training programs so that businesses can easily access and adopt new technologies.
By addressing these challenges strategically and effectively, building sustainable supply chains and logistics in the import and export of goods with the European region will become more feasible and contribute to global sustainable development.
Source: https://congthuong.vn/cuc-truong-xuat-nhap-khau-goi-mo-giai-phap-xay-dung-chuoi-cung-ung-logistics-ben-vung-sang-chau-au-333626.html
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