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The Decision no.221: A fresh impetus for Vietnam's logistics sector

On February 22nd, 2021, the Government issued the Decision no.221 with many contents amending and supplementing the Decision no.200/QD-TTg on approving the action plan to improve competition abilities and develop Vietnam’s logistics service to 2025. The Decision no.221 is expected to be a fresh impetus for the logistics sector in the time of implementing the Resolution of the 13th Party Congress, preparing for the implementation of the strategy of developing Vietnam’s logistics service in the period of 2025 - 2035 and vision to 2045.

AFFIRMING 5 LARGE GROUPS OF TASKS

The Decision no.221 affirms 5 groups of tasks that need to be implemented: completing policies and laws on logistics services; completing logistics infrastructure structures; improving enterprises’ abilities and service quality; developing logistics service market; training and improving awareness and human resource quality –with 61 specific tasks. VLA was assigned to be an agency that implements 12 tasks and coordinates 22 tasks. Previously, VLA actively consulted the Ministry of Industry and Trade in the preparation of amendment and supplementation of the Decision no.200, especially on the matters of 5 objectives, digitalization, training, the role of the Association and building the strategy of developing the national logistics services.

REVISING SPECIFIC OBJECTIVES

The Decision revises and reaffirms specific objectives to 2025: "The proportion of logistics services to GDPreach5%-6%(8%-10%in the Decision 200); logistics service growth rate reaches 15%-20%; logistics service outsourcing rate reaches 50% - 60%; logistics costs reduce to 16% - 20% of GDP; the world’s LPI ranking reaches 50 or up”. In 2018, before the pandemic of COVID-19, except the target of contributing to GDP uncompleted, the rest of 4 other objectives had been basically achieved.

BUILDING AND IMPROVING LOGISTICS INFRASTRUCTURES SERVING AGRICULTURE

The Decision clearly states the objective no.28 is to build and complete logistics infrastructures serving agriculture with specific content: "planning and implementing the construction of warehouse systems and logistics service centers serving agriculture... connecting to logistics centers and seaports, airports and gateways”. “Developing air logistics center with attention to extended logistics center outside airports, serving special goods”. The decision focuses on application, technology transfer and advanced techniques, promoting digitalization in logistic services” (no.33). These are important specific objectives to VLA’s action plan in the coming time.

TRAINING TO IMPROVE AWARENESS AND HUMAN RESOURCE QUALITY

The Decision put emphasis on university training (no.46) and logistics vocational training (no.47) diversifying forms of logistics training (no.48). It clearly states the implementation of “ranking and assessing competition abilities of the logistics service sector and logistics service providers (no.60)”.

MODIFYING SPECIFIC ROADMAP OF IMPLEMENTATION

2020 - 2021: Reviewing the progress of implementation and implementing tasks of improving competition abilities and developing Vietnam’s logistics services

2022: Implementing tasks of improving competition abilities and developing Vietnam’s logistics services.

2023: Reviewing and evaluating the result of the implementation of the Action Plan, preparing theoretical and practical basis to build the strategy of developing Vietnam’s logistics service in the period of 2025-2035, vision to 2045.

2024: Implementing tasks of improving competition abilities and developing Vietnam’s logistics services; building the strategy of developing Vietnam’s logistics service in the period of 2025-2035, vision to 2045.

2025: Having total-up and evaluating the implementation of the action plan. Implementing the strategy of developing Vietnam’s logistics service in the period of 2025-2035, vision to 2045.

According to the decision 221, VLA is assigned to be an agency that implements 12 tasks and coordinates other 22 tasks. To complete these tasks, VLA is setting an action plan with the following contents:

1. Improving propaganda tasks for the member to understand and implement the Decision.

2. Having proper measurements to implement digitalization and develop high-quality human resource

in forms of joint- training. Focusing on legal business training for the members.

3. Developing logistics services serving agriculture, developing air logistics services, including special air transport for agricultural products.

4. Having researches on building local LPIs, forming index to evaluate logistics business abilities and evaluating competition abilities of logistics service providers.

5. Having more international cooperation, facilitating its members to expand their markets.

6. Coordinating with key locales as HCMC, Can Tho City, BR- VT, Danang, Hai Phong

and Hanoi to implement the Decision no.221 effectively.

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