Decision No.: 200/QD-TTg of February 14, 2017, approval for the action plan for improvement of competitiveness and development of vietnam’s logistics services by 2025

DECISION

APPROVAL FOR THE ACTION PLAN FOR IMPROVEMENT OF COMPETITIVENESS AND DEVELOPMENT OF VIETNAM’S LOGISTICS SERVICES BY 2025

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government dated June 19, 2015;
Pursuant to the Law on Commerce dated June 14, 2005;
Pursuant to Decision No. 2471/QD-TTg dated December 28, 2011 by the Prime Minister giving approval for the Strategy for goods import and export during the 2011 – 2020 period with a vision up to 2030;
Pursuant to Decision No. 175/QD-TTg dated  January 27, 2011 by the Prime Minister giving approval for the Overall Strategy on development of service sector of Vietnam up to 2020;
At the request of Minister of Industry and Trade,
DECIDES:
Article 1. The action plan for improvement of competitiveness and development of Vietnam’s logistics services by 2025 (hereinafter referred to as the Action Plan) is approved herein with the following main contents:

1. VIEWPOINT
2. Logistics is an important service sector in the overall structure of the national economy, plays the role in support, connection and improvement of the social – economic development of the whole country as well as that in each locality, and takes part in the improvement of the economic competitiveness.
3. Develop the logistics service sector into a high value-added service sector and associate it with the national development of goods production, import, export and commercial activities, and the development of information technology and transport infrastructure.
4. Develop the logistics service market in a healthy way to create fair chance to enterprises in all economic sectors and encourage both domestic and foreign investments in conformity with the law of Vietnam and international treaties to which Vietnam is a signatory.
5. Make the best use of the strategic geographic position and improve connections to develop Vietnam into an important regional logistics hub.
6. Attach a special importance to the increase of the competitiveness of logistics service providers. Logistics service providers shall be developed in all terms of quantity, scale and qualification of personnel with the aim of holding a high level of competitiveness in both domestic and foreign markets.
7. The Government shall take the role in support and creation of convenient environment for improving the competitiveness and development of Vietnam’s logistics service sector.
8. OBJECTIVES
9. By 2025, the proportion of the logistics sector in GDP will reach 8-10%, the service growth will reach 15-20%, the proportion of outsourcing logistics services will  reach 50-60% , logistics costs will reduce equivalently to 16-20% of GDP, ranking 50 or above across the world according to the Logistics performance index (LPI).
10. The country will focus on attracting investment in logistics infrastructure development, constructing regional and international logistics service centers, improving the efficiency of the connection between Vietnam and other countries. Vietnam shall become a regional logistics hub.
11. Leading logistics service enterprises which are competitive enough in the domestic and international market will be formed, and existing logistics service enterprises will be supported to become modern and professional motto.
12. Production and trading enterprises will efficiently manage the supply chain, save materials and reduce production costs and time of goods movement.
13. Advanced technologies will be applied to logistics sector and professional personnel will be trained with high qualifications in logistics with the aim of facilitating the commercial development and restructuring production and trading enterprises.
14. The Government’s management mechanism, including policies on support and development of logistics services, sector regulatory laws and management structures, will be revised in conformity with the development of Vietnam’s logistics sector in the process of international economic integration.

III. MAIN GROUPS OF TASKS IN THE ACTION PLAN

1. Improving policies and laws on logistics services.
2. Completing the logistics infrastructure.
3. Strengthening business capacity and service quality.
4. Developing the market of logistics services.
5. Training, raising awareness and quality of human resources.
6. Other tasks.

Tasks of the action plan for improvement of competitiveness and development of Vietnam’s logistics sector by 2025 are prescribed in the Appendix enclosed herewith.

1. FUNDING OF THE ACTION PLAN
2. 1. Sources of funding for implementing the Action Plan include funds from state budget, enterprise’s capital, loans provided by credit institutions, international grants and other legal sources of funding as regulated by laws.
3. The state budget funds shall be allocated according to the current division of state budget levels. To be specific:
4. a) Funds for projects/ tasks covered by Ministries, Ministerial-level agencies or Affiliates of the Government shall be derived from the Central-government state budget and included in the annual estimate of expenditures covered by state funding of each agency.
5. b) Funds for projects/ tasks covered by the People’s Committees of provinces or central-affiliated cities shall be derived from the provincial-government state budget and included in the annual state budget of each provincial government.
6. IMPLEMENTATION ORGANIZATION
7. Ministry of Industry and Trade:
8. a) Take charge and coordinate with Ministries/ regulatory bodies and local governments in implementing this Action Plan; propose policies for encouraging social involvements in performing tasks in the Action Plan.
9. b) Expedite and supervise the implementation of the Action Plan.
10. c) Consolidate and evaluate annual results of the Action Plan, and make modification to the Action Plan, where necessary; submit reports to the Prime Minister.
11. Ministries/ regulatory bodies shall, based on this Action Plan, formulate, appraise, give approval and allocate state budget, and mobilize other legitimate sources of funding in accordance with management levels and prevailing laws to perform tasks mentioned in Section III and the Appendix enclosed herewith.
12. Each People’s Committee of province/ central-affiliated city shall, based on the actual development of logistics sector in such province, formulate the Plan for development of logistics services in such province, consider approval and allocate state budget to implement such plan in accordance with current regulations.

Article 2. Implementation

1. This Decision shall take effect as from the date on which it is signed.
2. Ministers, Heads of Ministerial-level agencies, Heads of the Government’s affiliates, Chairpersons of the People’s Committees of provinces/ central-affiliated cities, logistics services associations and/or enterprises, and relevant entities shall implement this Decision./.

 
SPECIFIC TASKS FOR IMPROVING THE COMPETITIVENESS AND DEVELOPING VIETNAM’S LOGISTICS SECTOR BY 2025
(Enclosed to Decision No. 200/QD-TTg dated February 14, 2017 by the Prime Minister giving approval for the action plan for improvement of competitiveness and development of Vietnam’s logistics services by 2025)

(*) Note: The agency whose name appears first shall be in charge of the task, the others are cooperating agencies.
 
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