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Are logistics companies prepared for TPP?

Are logistics companies prepared for TPP?

Thursday 27, 08 2020
Trần Khánh Hoàng, Executive Vice President of Sài Gòn New Port Corporation: TPP and free trade agreements offer Việt Nam many advantages in developing its trade and economy thanks to the increase in foreign trade, which I predict will increase by

Are logistics companies prepared for TPP?

Trần Khánh Hoàng, Executive Vice President of Sài Gòn New Port Corporation:

TPP and free trade agreements offer Việt Nam many advantages in developing its trade and economy thanks to the increase in foreign trade, which I predict will increase by at least 15 per cent.

Meeting the sharply increasing demand while also reducing logistics costs is both an opportunity and challenge for Vietnamese ports and logistics companies.

The biggest weakness of the Vietnamese logistic industry is its small size and lack of connectivity. In my opinion, to successfully integrate, companies should enhance co-operation with each other and improve their capacity by studying the TPP.

As the leading port company in Việt Nam, Sài Gòn New Port Corporation has been preparing well to utilize the chances arising from TPP. We have focused on developing our three pillars -- ports, logistics and domestic marine shipping services.

Our company has a network of 16 seaports located in all regions of the country.

In the Mekong region, we have developed barge ports on the Tiền and Hậu rivers.

In the south, Sài Gòn New Port Corporation focuses on developing ports in the Cái Mép area in Bà Rịa – Vũng Tàu Province, which can handle 14,000 TEU vessels. Meanwhile, international vessels have become bigger. So our corporation is working with the Ministry of Transport and Bà Rịa – Vũng Tàu authorities to upgrade the ports in this area to berth 18,000 TEU vessels.

In HCM City, two feeder ports have been built and developed. Of them, Cát Lái Terminal, is the biggest port in the country. Last year 4 million TEU of products arrived at this terminal. I think the volume will increase this year.

Phú Hữu Port in District 9 will be expanded and put into operation in June.

To meet the increasing demand, besides upgrading existing ports by investing in terminal operating systems, we have plans to build new ports.

In the middle of this month ground was broken for the Hải Phòng International Port. The construction will be finished in two years.

When put into operation in May 2018, the port can handle 14,000 TEU vessels, becoming the biggest deep-water port in the north.

Our Tân Cảng Logistics has been able to supply all services. With a modern port system and a fleet of modern vehicles, we believe we can meet all demands.

Domestic marine shipping services are being strongly developed. Four medium-sized container vessels of 700 TEU each are connecting ports in all three regions -- north, centre and south.

Container barges are also used to connect Phnom Penh in Cambodia with Cái Mép.

In addition, we have set up close co-operation with local authorities and customs so that we can help our customers save time and cost on administrative procedures.

Nguyễn Duy Minh, General Secretary of the Việt Nam Logistics Business Association (VLA)

TPP will bring huge opportunities to the Vietnamese logistics industry because the volume of imports and exports will increase.

However, there will be fierce competition as more and more international logistic companies are coming to the country.

To be more competitive, domestic logistic companies should improve their human resources and training.

They should also strengthen co-operation among themselves and enrich their knowledge about TPP, which they can do by attending conferences.

Regularly speaking with exporters and importers, especially of garment, footwear, seafood, agriculture, and wooden furniture is highly recommended.

To support its members, the VLA has organised many conferences to discuss solutions and provide opportunities for co-operation.

Five conferences will be held in Đà Nẵng and HCM City. There will six other conferences in the north focusing on issues like e-commerce logistics and how to improve logistics services.

Many programmes offering members the chance to compare notes with companies in regional countries will be organised.

Training programmes to improve members’ awareness of new trade agreements will be held.

The association will this year develop a code of professional conduct for logistics services providers.

Other tasks the VLA will continue to focus on this year include developing logistics in the Mekong Delta, improving the capacity of Cái Mép Thị Vải Port and co-operating with partners to develop training and transportation across borders.


Nguyễn Thị Hà Giang, General Director of Maersk Line Vietnam Ltd

I think logistics companies should make strategic investments in technology and fully utilise the benefits of e-commerce to improve efficiency, which is the key to success in this dynamic industry. Direct cargo delivery to terminals in Vũng Tàu should be built as this will cut down transportation lead time and enable faster speed to market.

We greatly appreciate the Vietnamese Government’s strong commitment to greater transparency and compliance to facilitate trade growth. It is working closely with local and international enterprises to help us prepare for aggressively growing our business once the TPP is finally implemented.

As a leading company in containerised ocean transportation, our company is well prepared for the TPP.

Firstly, we further enhanced our products by adding a direct service from Vũng Tàu to the US’s east coast in April, offering the fastest transit time in the market. Together with our existing direct service to the US’s west coast, this marked our complete direct coverage between Việt Nam and the US.

Secondly, local networks across Việt Nam are consistently reviewed and improved to respond to our customers’ expectations of faster transit times.

Thirdly, together with our US colleagues, we act as a bridge between Vietnamese shippers, exporters and importers and their customers in the US who share the same interest in growing their business opportunities in Việt Nam.

Last but not least, we continue to invest in e-commerce solutions to offer a unique exciting customer experience when shipping with Maersk Line. More importantly, those initiatives will result in more cost savings for our customers through improving productivity and ease of doing business. -- VNS

Read more: [INFOGRAPHIC] APEC 2017 at a glance

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