Vietnamese logistics expenses are significantly greater than those of other regional countries

DNHN - According to Mr. Dao Duy Tam, Deputy Director of the General Department of Customs' Management Supervision Department, clearing a shipment requiring several units such as specialized inspection requires the cooperation of all relevant authorities.

Many shipping lines have recently increased container shipping fees by 20%, despite the fact that the price is already very expensive, several times what it was before to the outbreak. 

At the seminar "Finding solutions to reduce import-export costs for businesses" organized by the Customs Newspaper on April 6, 2022, Mr. Jonathan Hanh Nguyen, Chairman of the Board of Members of IPPG Group, said, Vietnam's logistics costs are much higher than the world average. 

According to the World Bank's 2020 data, Vietnam's logistics costs account for about 20-25% of GDP. Meanwhile, in Thailand it is only 19%, Malaysia is 13%, Singapore is 8% and the US is only 7.7%.

According to the statistics of the Civil Aviation Authority of Vietnam, currently, international freight rates have skyrocketed 3-4 times, even at times, the freight rates increased 5-6 times compared to before the epidemic. 

Previously, the freight rate for freight from Asia to the United States was about 1-1.8 USD/kg, but now it has increased to 17-18 USD/kg.

A recent survey by the Vietnam Logistics Service Association (VLA) on the extent of the impact of the Covid-19 epidemic on the operations of logistics enterprises showed that, in the first quarter of 2020, 15% of enterprises reduced by 50% in revenue compared to 2019; more than 50% of enterprises reduced the number of domestic and international logistics services by 10% - 30% over the same period last year. 

About 97% of logistics service businesses are small and medium sized and have been severely impacted.

From May 2020, logistics activities will be restored in accordance with the economy, but 20% of logistics service businesses have already experienced a reduction in activity. In comparison to pre-pandemic levels, the volume of products trafficked across the border, particularly with China, remains clogged...

Mr. Tran Viet Huy, Head of the VLA's Customs and Trade Facilitation Department, stated that Vietnam's logistics expenses have increased significantly as a result of foreign corporations controlling container routes. If domestic firms capture a little portion of this market, the price will become less volatile than it is presently. 

According to Mr. Dao Duy Tam, Deputy Director of the General Department of Customs' Management Supervision Department, clearing a shipment requiring several units such as specialized inspection requires the cooperation of all relevant authorities. 

Currently, the VNACCS/VCIS System fully automates all core customs procedures at a very high level in 100% of customs offices nationally, serving more than 99% of firms. participate, process over  99.6% of declarations, and the time required for green channel items to clear customs is merely 1-3 seconds.

Khang Ang