|SOCIALIST REPUBLIC OF VIETNAM|
Independence – Freedom – Happiness
|No.: 200/QD-TTg||Hanoi, February 14, 2017|
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,
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:
- 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.
- 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.
- 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.
- Make the best use of the strategic geographic position and improve connections to develop Vietnam into an important regional logistics hub.
- 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.
- 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.
- 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).
- 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.
- 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.
- Production and trading enterprises will efficiently manage the supply chain, save materials and reduce production costs and time of goods movement.
- 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.
- 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
- Improving policies and laws on logistics services.
- Completing the logistics infrastructure.
- Strengthening business capacity and service quality.
- Developing the market of logistics services.
- Training, raising awareness and quality of human resources.
- 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.
- FUNDING OF THE ACTION PLAN
- 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.
- The state budget funds shall be allocated according to the current division of state budget levels. To be specific:
- 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.
- 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.
- IMPLEMENTATION ORGANIZATION
- Ministry of Industry and Trade:
- 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.
- b) Expedite and supervise the implementation of the Action Plan.
- 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.
- 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.
- 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
- This Decision shall take effect as from the date on which it is signed.
- 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./.
|PP PRIME MINISTER|
DEPUTY PRIME MINISTER
Trinh Dinh Dung
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)
|No.||Tasks||Goals||In-charge agency (*)||Implementation/ completion time|
|I||Improving policies and laws on logistics services|
|1.||Supplement and amend contents about logistics services in the Law on Commerce||Establish legal grounds to facilitate logistics activities||Ministry of Industry and Trade and Ministry of Justice||2020|
|2.||Promulgate a Decree to amend or replace the Decree No. 140/2007/ND-CP||Comprehensively regulate logistics services and internalize international commitments on logistics||Ministry of Industry and Trade and Ministry of Justice||2017|
|3.||Review legislative documents and policies on logistics||Propose amendments or promulgation of new policies/ laws on logistics, multimodal transport and cross-border transport||Ministry of Industry and Trade, Ministry of Transport, Ministry of Planning and Investment and Ministry of Justice||2018|
|4.||Review and amend policies on taxes, fees and prices of logistics-related services||Apply road-user charges and seaport services fees so as to facilitate logistics activities||Ministry of Transport and Ministry of Finance||2017|
|5.||Review international commitments on logistics in WTO and ASEAN, and Free-trade Agreements (FTAs)||Propose measures to avoid conflicts between commitments on logistics at international forums, and avoid conflicts between international commitments on logistics and domestic laws||Ministry of Industry and Trade, Ministry of Planning and Investment and Ministry of Justice||2017|
|6.||Formulate plan for negotiation on commitments on logistics in future FTAs||Commitments on logistics in future FTAs should be in harmony with existing commitments and domestic laws; promote strengths of Vietnam’s logistics service providers with the aim of developing Vietnam into a regional logistics hub.||Ministry of Industry and Trade, Vietnam Logistics Association, and Vietnam Chamber of Commerce and Industry||2018|
|7.||Disseminate Vietnam’s international commitments on logistics services||Help enterprises have a good grasp of and properly apply international commitments on logistics||Ministry of Industry and Trade, Vietnam Logistics Association, and Vietnam Chamber of Commerce and Industry||2017 – 2025|
|8.||Enhance trade facilitation||Reform customs procedures, reduce and simplify sector inspection procedures, standardize documents and develop WTO Trade Facilitation Agreement||Ministry of Finance, relevant Ministries and Vietnam Chamber of Commerce and Industry||2017 – 2025|
|9.||Enhance the application of Vietnam’s single-window system||Apply the national single-window system to the conducting of all procedures for imported, exported and transit goods, outcoming, incoming and transit people and means of transport||Ministry of Finance, relevant Ministries and Vietnam Chamber of Commerce and Industry||2020|
|10.||Establish the Trade Information Portal||Assist enterprises in searching information relating tax rates and import/export procedures for each type of commodity||Ministry of Finance and Ministry of Industry and Trade||2017|
|11.||Do research on and formulate policies to support the development of logistics services of provinces||Formulate appropriate policies to support the development of logistics services in provinces in an effective way in conformity with social – economic characteristics of each province||People’s Committees of provinces/ central-affiliated cities||2020|
|II||Completing the logistics infrastructure|
|12.||Review plans to ensure the synchronization of transport infrastructure, transport services, and the development objectives of logistics sector||Ensure the conformity of plans for transportation with strategies/ plans for industrial production, agricultural production, import & import, and provincial strategies for social – economic development, and their connection with plans for logistics centers, dry ports and bonded warehouse in a harmonious whole||Ministry of Transport, Ministry of Industry and Trade, and Ministry of Finance||2018|
|13.||Review and amend provincial plans/ structure of production in association with the development of logistics services and infrastructure||Ensure the conformity of plans for development of logistics services and infrastructure with social – economic development plans of each province||People’s Committees of provinces/ central-affiliated cities||2018|
|14.||Completing policies and speed up the attraction of investments in logistics infrastructure||Promulgate appropriate policies to attract both domestic and foreign investments and encourage all economic sectors to invest in logistics sector and logistics infrastructure development||Ministry of Planning and Investment, Ministry of Finance, and Vietnam Chamber of Commerce and Industry||2019|
|15.||Promote the cooperation with foreign partners with the aim of improving the connection of logistics infrastructure systems||Improve the connection between the national logistics infrastructure and those of ASEAN member states, countries in the Northeast Asia and other regions in the world for the purpose of making best use of multimodal transport, cross-border transport and transit||Ministry of Transport, and Vietnam Logistics Association||2017 – 2025|
|16.||Invest in logistics infrastructure expansion with the aim of connecting Vietnam’s ports with those of neighboring countries||Build traffic works, warehouses, and logistics centers on routes/ corridors connecting Vietnam and Laos, Cambodia, Thailand and South China||Ministry of Transport, Ministry of Industry and Trade, and People’s Committees of relevant provinces/cities||2017 – 2025|
|17.||Speed up the development of multimodal transport and cross-border transport, especially in-transit goods transport||Increase the quantity of goods transported under the forms of multimodal transport, cross-border transport, and transit||Ministry of Transport, and Ministry of Industry and Trade||2017 – 2025|
|18.||Promote the transport restructuring with the aim of developing a transport market with an appropriate structure||Overcome irrational status in transport structure, increase the market share of large-volume transport modes and the connection between transport modes, reduce transport costs and improve quality of transport services||Ministry of Transport, and relevant Associations||2017 – 2025|
|19.||Increase the capacity of marine transportation||Increase the volume of goods transported by sea. Amend the Plan for seaport system in the way of focusing on development of regional economic advantages. Improve the quality of services of Vietnam’s fleets||Ministry of Transport||2017 – 2025|
|20.||Develop the transport of goods by inland waterway||Increase the volume of goods transported by inland waterway. Build inland waterway ports with modern equipment, especially ports in Mekong Delta and Red River Delta||Ministry of Transport||2017 – 2025|
|21.||Modernize railway system and increase the capacity of railway transport of goods||Increase the volume of goods transported by railway. Shorten transport period, and increase the reliability and quality of services. Make a strong connection between railway system and road, seaway, airway and inland waterway systems||Ministry of Transport||2017 – 2025|
|22.||Increase the capacity of transport and handling of goods by airway||Increase the volume of goods transported by air. Build modern cargo terminals with high cargo handling capacity and high-level automation||Ministry of Transport||2017 – 2025|
|23.||Rationalize road transport||Maintain the volume of goods transported by road in balance with other transport modes. Increase the reliability, prevent traffic congestion and reduce costs of goods transport by road||Ministry of Transport||2017 – 2025|
|24.||Develope logistics trading floors||Optimize the two-way transport of goods, container transport||Ministry of Transport, and relevant Associations||2018|
|25.||Improve logistics infrastructure in association with e-commerce||Develop transport systems with the aim of following development trends of e-commerce, including paying special attention to last-mile delivery||Ministry of Industry and Trade, Vietnam E-commerce Association, and Vietnam Logistics Association||2019|
|26.||Focus on calling for investment in construction of type-I logistics centers in Hanoi City and Ho Chi Minh City||Establish type-I logistics centers which perform the role in connecting Vietnam and foreign countries||Ministry of Transport, Ministry of Planning and Investment, and People’s Committees of relevant provinces/cities||2021|
|27.||Focus on calling for investment in construction of type-II logistics centers in Lang Son, Lao Cai, Hai Phong, Da Nang, Quy Nhon and Can Tho||Establish type-II logistics centers which perform the role in connection between key economic regions in Vietnam||People’s Committees of relevant provinces/cities, Ministry of Planning and Investment, and Ministry of Industry and Trade||2023|
|28.||Develop air logistics centers with attaching a special importance to prolonged logistics centers outside of airports to handle special commodities||Establish air logistics centers with specific areas for handling special commodities such as dangerous goods, high-value goods, high-tech goods and goods requiring special maintenance, etc.||Ministry of Transport, and Vietnam Logistics Association||2020|
|29.||Mobilize and attach investment in construction of logistics centers with the purpose of improve Vietnam’s import/ export of goods to/from global markets:||Establish logistics centers in foreign countries which play the role in collecting and distributing goods from Vietnam to international markets||Ministry of Transport, Ministry of Foreign Affairs, Ministry of Planning and Investment, and Vietnam Logistics Association||2017 – 2025|
|a)||– East Asia: China, Japan and Korea|
|b)||– Europe: Netherlands, Belgium, Italia and Russia|
|c)||– America: USA, Panama, Brazil|
|d)||– South Asia, West Asia and Africa: India, United Arab Emirates (UAE), and South Africa|
|III||Strengthening business capacity and service quality|
|30.||Encourage and instruct enterprises in certain sectors in applying advanced supply chain management models:||Enterprises in certain sectors apply advanced supply chain management models to their production and business activities. Information technology and new logistics technologies are applied to logistics activities||Ministry of Industry and Trade, Vietnam Logistics Association, Vietnam Software and IT Services Association, and relevant associations||2021|
|a)||– Textile and garment industry|
|b)||– Leather and footwear industry|
|c)||– Timber industry|
|d)||– Agricultural products – foods industries|
|dd)||– Mechanical – manufacturing industry|
|e)||– Small and medium enterprises|
|31.||Encourage some industrial parks and export processing zones to form logistics-based industrial zone model||Some industrial parks/ export processing zones provide closed logistics services to help enterprises there shorten time and costs of delivery of materials and products||Ministry of Planning and Investment, and People’s Committees of relevant provinces/cities||2020|
|32.||Prioritize the allocation of state funding to research, transfer and application of advanced technologies to the development of logistics services; improve private sector involvement in the development of logistics services||Do research and apply new technologies/ technological advances to the management, operation and training in supply chain systems and logistics services||Ministry of Science and Technology, and Vietnam Logistics Association||2017 – 2025|
|33.||Promote deep integration between logistics sector and domestic agricultural production, industrial production, import/export/sale of goods, and other service sectors||Increase the quantity of production and trading enterprises using logistics services to enhance the efficiency of their business activities||Vietnam Logistics Association, and Vietnam Chamber of Commerce and Industry||2017 – 2025|
|34.||Speed up the development of integrated logistics services, including 3PL and 4PL logistics services||Increase the quantity of enterprises providing integrated logistics services with the use of modern technologies for improving service quality||Vietnam Logistics Association, and relevant associations||2017 – 2025|
|35.||Completing policies for supporting logistics service providers||Logistics service providers, especially small and medium enterprises, are facilitated in accessing to domestic and foreign sources of funding, developing market, training and accessing to information||Ministry of Planning and Investment, the State Bank of Vietnam, Ministry of Industry and Trade, and Vietnam Chamber of Commerce and Industry||2020|
|36.||Support the establishment of strong logistics corporations towards outward investment and export of logistics services||Establish large-scale logistics enterprises creating orientations and motives for market development||Vietnam Logistics Association, and Vietnam Chamber of Commerce and Industry||2022|
|37.||Assist enterprises in improving their capacity for negotiation, conclusion and performance of logistics services contracts, and resolution of logistics disputes||Enterprises improve their capacity for negotiation, conclusion and performance of logistics services contracts, and resolution of logistics disputes||Vietnam Chamber of Commerce and Industry, and Vietnam Logistics Association||2017 – 2025|
|IV||Developing the market of logistics services|
|38.||Improve trade promotion in the field of logistics sector||Host/ organize international logistics seminars, trade fairs and exhibitions. Attend international logistics trade fairs and exhibitions. Organize research teams working abroad and invite foreign enterprises to Vietnam to discuss future investment opportunities and cooperation in developing logistics services||Vietnam Logistics Association, and Vietnam Chamber of Commerce and Industry||2017 – 2025|
|39.||Attract sources of goods transported from Laos, Cambodia, Thailand and South China through Vietnam to other countries and vice versa||Increase the volume of goods transported from Laos, Cambodia, Thailand and South China through Vietnam to other countries and vice versa||Ministry of Industry and Trade, Ministry of Transport, and Vietnam Logistics Association||2017 – 2025|
|40.||Give support to improve operating and marketing efficiency, and expand sources of goods for the Cai Mep – Thi Vai port complex||Increase the volume of goods at the Cai Mep – Thi Vai port complex, and develop this complex into a regional center for collection and transit of goods||Ministry of Transport, and Ministry of Industry and Trade||2022|
|41.||Enhance the development of outsourcing logistics services||Enhance the propagation of the use of outsourcing logistics services to domestic producers, importers, exporters and traders towards specialization and appropriate use of workforce in supply chains||Vietnam Shippers’ Council, and Vietnam Logistics Association||2017 – 2025|
|42.||Orientate change of behavior in international trade, make a connection between shippers and logistics service providers||Change “buy CIF and sell FOB” term of delivery, improve awareness of shippers, and provide Vietnam’s logistics service providers chance to take part in many stages of the supply chain with higher and higher value added content||Vietnam Shippers’ Council, and Vietnam Logistics Association||2017-2025|
|43.||Promote international cooperation in logistics||Promote the cooperation with logistics associations and enterprises in ASEAN and in the world. Attract lots of foreign enterprises to Vietnam to run business or cooperate with Vietnamese enterprises||Vietnam Logistics Association||2017 – 2025|
|V||Training, raising awareness and quality of human resources|
|44.||Promote bachelor’s programs in logistics||Universities do research and formulate training programs/textbooks in logistics, and establish Logistics Departments. Accredit logistics training major.||Ministry of Education and Training, Ministry of Industry and Trade, and Ministry of Transport||2023|
|45.||Promote vocational training programs in logistics||Formulate the national occupational standard and qualifications framework in logistics in harmony with ASEAN and international qualifications reference frameworks Vocational training institutions organize training programs in logistics||Ministry of Labour, War Invalids and Social Affairs, Ministry of Industry and Trade, Ministry of Transport, and Vietnam Logistics Association||2017 – 2025|
|46.||Increase lecturers in logistics in terms of quantity and quality||Attract lecturers in logistics sector. Establish knowledge criteria and improve qualifications of lecturers in logistics||Ministry of Education and Training, and Ministry of Labour, War Invalids and Social Affairs||2017 – 2025|
|47.||Provide basic training programs in logistics to enterprises‘ leaders and regulatory bodies’ officials||Provide basic training programs in logistics to enterprises‘ leaders and regulatory bodies’ officials to facilitate them in fulfilling their duties||Vietnam Logistics Association, and Ministry of Industry and Trade||2017 – 2025|
|48.||Connect Vietnam’s training institutions/ logistics enterprises with foreign training institutions||Cooperate with foreign training institutions to organize appropriate training courses with the aim of improving efficiency of training and drilling logistics personnel||Vietnam Logistics Association, Ministry of Education and Training, and Ministry of Labour, War Invalids and Social Affairs||2017 – 2025|
|49.||Organize scientific & education programs in logistics via means of mass media||Take advantage of means of mass media to popularize the role and importance of logistics sector as well as logistics enterprises||Vietnam Logistics Association, and Ministry of Information and Communications||2023|
|50.||Establish strong logistics research centers||Establish several centers which carry out in-depth research in logistics to do research and grasp new trends and advanced technologies in logistics, promptly and efficiently apply research findings||Ministry of Science and Technology, and Vietnam Logistics Association||2023|
|51.||Strengthen the state management apparatus in logistics||Do research on the establishment of the National Steering Committee for Logistics, and logistics advisory boards of certain Ministries/ regulatory bodies to assist the Government in regulating logistics activities||Ministry of Home Affairs, Ministry of Industry and Trade, and Ministry of Transport||2018|
|52.||Strengthen and promote the role of logistics associations||Promote the role of logistics associations in order to determine the visions and orientations for developing and supporting logistics service enterprises||Ministry of Home Affairs, Ministry of Industry and Trade, and relevant associations||2020|
|53.||Promote the role of Vietnam Logistics Forum and establish the mechanism for cooperation and regular talks between regulatory bodies and logistics service enterprises||Expand the scope and attract the participation of logistics service enterprises and international investors in the Vietnam Logistics Forum. At the same time, establish the mechanism for cooperation and regular talks between regulatory bodies and logistics service enterprises for solving difficulties and other matters||Ministry of Industry and Trade, Ministry of Transport, and Vietnam Logistics Association||2017 – 2025|
|54.||Formulate and supplement standards and regulations on logistics activities||Formulate standards and regulations to standardize logistics operation process||Ministry of Science and Technology, relevant Ministries/ regulatory bodies, and Vietnam Logistics Association||2022|
|55.||Develop equipment for inspecting, measuring and testing measuring instruments serving logistics activities||Manufacture and develop equipment for inspecting, measuring and testing measuring instruments serving logistics activities with the aim of ensuring the accuracy and honesty in goods forwarding||Ministry of Science and Technology, and relevant associations||2022|
|56.||Formulate statistical indicators and collect logistics statistical figures.||Form a system of statistical indicators and collect logistics statistical figures.||Ministry of Planning and Investment, Ministry of Industry and Trade, And Ministry of Transport||2019|
|57.||Promulgate business registration codes for logistics services||Promulgate business registration codes for logistics services||Ministry of Planning and Investment||2018|
|58.||Establish a set of logistics performance indicators||Form a set of performance indicators to evaluate the performance of logistics operations in conformity with international standards||Vietnam Logistics Association, and Ministry of Industry and Trade||2018|
|59.||Rank and evaluate the competitiveness of logistics sector and that of logistics service providers||Do research, rank and evaluate the competitiveness of logistics sector and of logistics service providers||Vietnam Logistics Association, and Ministry of Industry and Trade||2018 – 2025|
|60.||Prepare Vietnam Logistics Sector Report||Prepare annual report which includes general assessment of logistics sector, characteristics and developments during the year, and suggested solutions for the following year||Ministry of Industry and Trade, and Vietnam Logistics Association||2017 – 2025|
(*) Note: The agency whose name appears first shall be in charge of the task, the others are cooperating agencies.
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