Joining WLP could raise export competitiveness of Vietnamese firms

Products could be cleared before arrival at the ports, Shipton said.

WLP is a global, private sector-led initiative designed to smoothen the flow of global trade, unlock market access and provide economic efficiencies to members. It offers financial and non-financial benefits to traders and freight forwarders in reward for increasing their trade.

It was established to overcome trade impediments that limit trade growth and build logistical bridges between manufacturing hubs in Asia, Africa, Central and South America.

Nguyen Minh Phuong from the Vietnamese ministry of industry and trade's Asia-Africa market department said the country has an advantageous geographical position to develop a logistics centre in Southeast Asia with an improved system of warehouses, seaports and highways.

The development of the logistics industry would also create favourable conditions for Vietnam to become a new production centre of the region, he was quoted as saying by a Vietnamese newspaper.

Some UAE ports are currently offering exemption of duties and fees for products with WLP, which is expected to boost trade between Vietnam and the United Arab Emirates and other markets in the Middle East from 0.5 per cent now to 27 per cent.

Figures of the Vietnam Logistics Association revealed logistics costs are equivalent to around 20-22 per cent of the country’s gross domestic product, much higher than Thailand (19 per cent), China (18 per cent), Malaysia (13 per cent) and nearly three times higher than the United States and Singapore (8 per cent).

Nguyen Tuong, an expert from the Vietnam Logistics Association, said a problem of the domestic logistics industry was that most enterprises were small and medium in nature, and lack linkage and connectivity among transport modes and a shortage of infrastructure.

Fibre2Fashion News Desk (DS)