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,

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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:

I. VIEWPOINT

1. 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.

2. 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.

3. 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.

4. Make the best use of the strategic geographic position and improve connections to develop Vietnam into an important regional logistics hub.

5. 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.

6. 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.

II. OBJECTIVES

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2. 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.

3. 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.

4. Production and trading enterprises will efficiently manage the supply chain, save materials and reduce production costs and time of goods movement.

5. 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.

6. 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.

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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.

IV. 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.

2. 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.

V. IMPLEMENTATION ORGANIZATION

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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.

2. 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.

3. 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./.

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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

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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

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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

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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.

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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

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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

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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.

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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

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- 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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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Other tasks

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

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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

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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.

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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

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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

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2017 - 2025

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