China continues to build many warehouses to bring goods into Vietnam.

Chinese goods are popular because of their low prices, diverse designs, and fast delivery – Photo: BONG MAI

Mr. MA REN HONG - Executive Chairman of Guangdong Logistics Association with more than 6,200 member enterprises - shared about the development strategy of the logistics industry in China in general and this locality in particular as well as policies to promote cross-border e-commerce, exploiting the Vietnamese market well.

Mr. Ma Nhan Hong

Mr. Hong said: Because there is no direct border with Vietnam, Guangdong province has turned to Guangxi province to build and invest in many warehouses to support businesses. The association's member businesses are also building warehouses in Dongxing, adjacent to Mong Cai city (Quang Ninh province, Vietnam).

* In addition to the story of very competitive product prices, what factors help e-commerce sales activities for Vietnamese customers develop strongly, with 4 - 5 million orders shipped from China to Vietnam every day, sir?

– Vietnam and China have signed a Comprehensive Strategic Partnership. This is the basis for the e-commerce industry to develop more strongly between the two countries. In addition, there are dozens of border gates along the border, with diverse forms of transportation from sea, rail, road, etc.

In Guangdong province alone, e-commerce is growing rapidly, with about 100,000 orders placed every day. The volume of goods on e-commerce platforms, as well as daily trade in China, increases by about 10% each year compared to the same period last year.

Vietnam is a large targeted market with a population of more than 100 million people. This is a large market so Chinese businesses have prepared goods and services to serve it.

* Logistics businesses, livestream sales, and cross-border e-commerce businesses said they have received great support from the State's support policies?

– E-commerce in China is developing strongly, encouraged and promoted by the State, promoting international trade.

In particular, livestream is a new form of business, the government and related departments are still in the process of exploration. To develop policies and effective management methods, help businesses develop healthily, support the trading of goods, increase consumption, as well as solve the problem of employment and start-up of new businesses.

To support businesses, the government allows localities to issue their own policies for businesses. Some notable policies include free warehouse rental, one-time support of 30,000 - 50,000 yuan (105 - 175 million VND) for startups, or support for operating costs when businesses achieve set KPIs (targets)...

Local policies also vary depending on each border gate and each country. For example, for businesses exporting goods from China to Vietnam, through our province, a tax refund policy is applied after payment. Tax exemption for agricultural products on both sides, encouraging farmers to bring goods from the two countries back and forth.

Building overseas warehouses is part of the overall strategy. We also receive KPIs from local authorities to promote 500 overseas warehouses, including about 20 warehouses for the Vietnamese market. Based on the scale, location, desired goals, capacity and results achieved, we will issue specific policies, typically supporting warehouse operating costs.

* Vietnamese businesses and consumers are very impressed by the fast delivery time from China. So, besides building warehouses at the border and in Vietnam, does China have any other strategies, sir?

– China is developing many routes to support the transportation of the logistics industry. Recently, a highway has been developed to the northwest. Starting in southern China (northern Vietnam), running through many provinces and cities of Guizhou, Yunnan, passing through Nanning, Suzhou, even going to Xinjiang and then connecting to Russia, Kazakhstan…

This synchronized transport system has contributed to reducing transportation costs, shortening time, improving efficiency, and enhancing trade. For example, in Shanxi (China), there are many agricultural products. When the above route is completed, it can be quickly transported to the Vietnamese border gate. Conversely, Vietnamese agricultural products can also be transferred to the northwest (China) and some other countries.

The government has a strategy to promote high-speed rail transport, with an average speed of 400km/h. At that time, goods from Beijing to Vietnam, a distance of 2,000km, will only take 5 hours, a huge advantage. Currently, the above expressway runs from Sichuan to Kunming (Yunnan). It is even being piloted at Dongxing border gate (bordering Quang Ninh, Vietnam). After the pilot is successful, the entire network will be developed.

In addition, China has about 2,000 airports in use, exploiting logistics transportation nationwide. Hopefully, Vietnam will also invest more in airports to meet the trade needs between the two countries.

Developing infrastructure, promoting trade with Vietnam

Mr. Ma Nhan Hong said that Dong Hung border gate (bordering Quang Ninh) is developing strong trade of goods. Therefore, this locality has a strategy to build a high-performance logistics route, connecting from Guangzhou (capital of Guangdong) to this province to go to Vietnam.

However, Mr. Hong also expressed his wish to have a route shared by businesses of the two countries, running from the border gate to Hanoi, Da Nang, and even Ho Chi Minh City, using green energy. “Through infrastructure support between the two countries, it is possible to support Vietnamese and Chinese businesses to promote logistics services…”, Mr. Hong said.

Chinese logistics enterprises have a systematic, modern ecosystem and make large investments in Vietnam - Photo: BONG MAI

Vietnam e-commerce lacks warehouses and is not supported

Speaking with Tuoi Tre, a representative of the Vietnam Logistics Services Association (VLA) admitted that China's support policies for logistics businesses and e-commerce platforms have helped reduce product costs and increase competitiveness.

Meanwhile, Vietnamese logistics enterprises face many difficulties due to expensive land rental costs, complicated procedures and lack of policy support. Therefore, enterprises only build warehouses to serve traditional production and distribution, but there are few standard warehouses for e-commerce enterprises. Manufacturers create products and store goods themselves because they do not believe that e-commerce helps sell products quickly and create a difference.

According to this person, businesses must join forces to develop logistics strongly. Accordingly, large businesses join hands to create a model of concentrated output on a large scale, using shared logistics infrastructure to help lower the initial cost per product, increasing competitiveness. In addition, more support policies from the State are needed, focusing on investing in warehouse and bonded warehouse infrastructure, promoting cross-border transactions.

China offers many incentives for investment in logistics development.

Speaking to us at a working session in Hangzhou (China), the leader of a logistics company said that the logistics industry receives preferential policies from the government. Enterprises that meet the set targets will receive incentives to cut transportation costs, lower product prices to increase competitiveness in the region and the world. Based on the general policy, each specific locality will allocate its own policies depending on the situation.

For example, according to Ms. L., marketing director of a Chinese logistics company, the government of Thi Trung district in Tao Trang city (Shandong province) launched preferential policies to encourage businesses to invest in warehouses.

Accordingly, if the total warehouse area independently built or leased by a cross-border e-commerce enterprise reaches more than 500 square meters and the actual annual investment reaches more than 300,000 yuan, the cost of purchasing and renting overseas warehouse space, expanding and upgrading the enterprise's storage facilities, etc. will be subsidized at 10% of the actual annual investment (up to 100,000 yuan/enterprise, equivalent to nearly 350 million VND).

Meanwhile, Yunhe District (Zhejiang Province) has introduced a series of measures to promote the development of the logistics industry. Specifically, enterprises that deliver more than 2 million packages and have a growth rate of over 15% compared to the previous year will be supported with 0.5 yuan/package (applied to the increase compared to the previous year) but not exceeding 150,000 yuan (over 520 million VND)/year...

Tuoitre.vn

Source: https://tuoitre.vn/trung-quoc-tiep-tuc-xay-nhieu-kho-bai-de-dua-hang-vao-viet-nam-20240809081215374.htm