Lach Huyen port in Hai Phong city (Photo: VNA) Hanoi (VNS/VNA) - The Vietnam Chamber of Commerce and Industry (VCCI) hasproposed an inter-ministerial working group be founded to tackle the containershortages and stabilise logistics fees which have skyrocketed recently.
Thiswas one among the proposals VCCI sent to the Ministry of Planning andInvestment regarding the project to support the Vietnamese economy in thecurrent situation.
VCCIsaid that logistics costs saw strong increases from 2020, coupled with anincreasingly severe shortage of containers.
Forexample, transportation fees from Vietnam to Southampton, the UK, increasedfrom 1,600 USD in early 2020 to 5,000 USD in December and now 9,100 USD percontainer.
Thetransportation fees to Los Angeles, the US, rose from 1,800 USD in early 2020to around 8,000 USD currently.
Theshortage of containers also caused delays in shipments which caused risingcosts for container storage at ports and even cancellations of orders. Thesituation worsened after the Suez Canal blockage in March as well ascongestion at ports, according to VCCI.
VCCIpointed out that these problems were threatening to cause disruptions in thesupply chains of many industries and push enterprises into a lot ofdifficulties.
Itwas necessary that the Ministry of Transport and the Ministry of Industry andTrade establish a working group to remove difficulties forenterprises and tackle the container shortage, VCCI said, adding that theworking group should work closely with industry associations, ports andshipping lines to raise solutions to prevent manipulation which was pushing uptransportation fees.
VCCIalso proposed measures to improve the advantages of preferential tariffs infree trade agreements (FTAs) to boost imports and exports as well as tacklingproblems related to origin rules.
VCCIsaid that the percentage of revenue of export products that enjoyedpreferential tariffs in FTAs in the country’s total export revenueremained low and were on a downward trend in recent years, from 39 percent in 2018 to 33 per cent in 2020.
Firmshad not fully taken advantage of preferential tariffs in recent FTAs suchas the Comprehensive and Progressive Agreement for Transpacific Partnership(CPTPP) and the EU – Vietnam FTA (UKVFTA), partly due to the lack of awarenessabout origin rules.
TheMinistry of Industry and Trade should establish a working group about originrules to provide consultancy to enterprises and enable them to takeadvantage of FTAs to promote exports.
Anothersolution was hastening the streamlining of administrative procedures tocreate favourable conditions for businesses.
Asthe COVID-19 pandemic was heavily affecting enterprises, VCCI said that theGovernment should enhance the efficiency and practicality of supportpolicies to aid enterprises to overcome the difficult time. The supportpolicies should focus on sectors which were hit hard by the virus as well assmall and medium – sized enterprises.
Regulationsthat might push up costs for enterprises at this moment should be delayedto a more appropriate time, VCCI said./.
Thiswas one among the proposals VCCI sent to the Ministry of Planning andInvestment regarding the project to support the Vietnamese economy in thecurrent situation.
VCCIsaid that logistics costs saw strong increases from 2020, coupled with anincreasingly severe shortage of containers.
Forexample, transportation fees from Vietnam to Southampton, the UK, increasedfrom 1,600 USD in early 2020 to 5,000 USD in December and now 9,100 USD percontainer.
Thetransportation fees to Los Angeles, the US, rose from 1,800 USD in early 2020to around 8,000 USD currently.
Theshortage of containers also caused delays in shipments which caused risingcosts for container storage at ports and even cancellations of orders. Thesituation worsened after the Suez Canal blockage in March as well ascongestion at ports, according to VCCI.
VCCIpointed out that these problems were threatening to cause disruptions in thesupply chains of many industries and push enterprises into a lot ofdifficulties.
Itwas necessary that the Ministry of Transport and the Ministry of Industry andTrade establish a working group to remove difficulties forenterprises and tackle the container shortage, VCCI said, adding that theworking group should work closely with industry associations, ports andshipping lines to raise solutions to prevent manipulation which was pushing uptransportation fees.
VCCIalso proposed measures to improve the advantages of preferential tariffs infree trade agreements (FTAs) to boost imports and exports as well as tacklingproblems related to origin rules.
VCCIsaid that the percentage of revenue of export products that enjoyedpreferential tariffs in FTAs in the country’s total export revenueremained low and were on a downward trend in recent years, from 39 percent in 2018 to 33 per cent in 2020.
Firmshad not fully taken advantage of preferential tariffs in recent FTAs suchas the Comprehensive and Progressive Agreement for Transpacific Partnership(CPTPP) and the EU – Vietnam FTA (UKVFTA), partly due to the lack of awarenessabout origin rules.
TheMinistry of Industry and Trade should establish a working group about originrules to provide consultancy to enterprises and enable them to takeadvantage of FTAs to promote exports.
Anothersolution was hastening the streamlining of administrative procedures tocreate favourable conditions for businesses.
Asthe COVID-19 pandemic was heavily affecting enterprises, VCCI said that theGovernment should enhance the efficiency and practicality of supportpolicies to aid enterprises to overcome the difficult time. The supportpolicies should focus on sectors which were hit hard by the virus as well assmall and medium – sized enterprises.
Regulationsthat might push up costs for enterprises at this moment should be delayedto a more appropriate time, VCCI said./.
VNA
