Decision 708/QD-BCT 2019 Plans for improvement of Logistics performance index

THE MINISTRY OF INDUSTRY AND TRADE

DecisionNo. 708/QD-BCT dated March 26, 2019 of the Ministry of Industry and Trade on approving plans for improvement of Vietnam’s Logistics performance index

MINISTER OF INDUSTRY AND TRADE

Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to Resolution No.02/NQ-CP dated January 01, 2019 of the Government on continuing performing necessary tasks and solutions for improvement of business environment and national competitiveness in 2019 with visions towards 2021;

Pursuant to Decision No.200/QD-TTg dated February 14, 2017 of the Prime Minister approving the Action plan for improvement of competitiveness and development of Vietnam’s logistics services by 2025; 

Pursuant to Decree No.98/2017/ND-CP dated August 18, 2017 of the Government on functions, duties, rights and organizational structure of the Ministry of Industry and Trade;

According to guidelines provided by the Prime Minister in Document No.1846/VPCP-KSTT dated March 06, 2019 on performance of duties of focal points for monitoring the LPI improvement;

At the request of Director of Department of Import and Export,

HEREBY DECIDES:

Article 1.Approving the Plan for improvement of Vietnam’s logistics performance index with the main following contents:

I. OBJECTIVES

Raise the ranking of Vietnam in the World Bank’s Logistics Performance Index (hereinafter referred to as “LPI”) by 5 to 10 levels by 2025 in order to make positive contributions to improvement of business environment, cost reduction, improvement of competitiveness in provision of Vietnam s logistics services, enhancement of creative and innovative capacity and successful implementation of the Government’s Resolution on socio-economic development.

II. TASKS

1. Group of tasks for infrastructure improvement

- Promote PPP agreements on projects for development of logistics infrastructure, to be specific: court supports from international organizations and individuals business partners applying advanced technology in development of logistics infrastructure.

- Attract investments in construction of large-scale aerial logistics centers, modern equipment to satisfy the demand for air transport of goods of domestic enterprises and act as a focal point for transshipment of foreign goods, especially electronic commercial goods.

- Launch projects for improvement and modernization of the North-South railway; reform and improve Hanoi – Hai Phong, Hanoi – Thai Nguyen, Hanoi – Lang Son, Hanoi – Ha Long railways in a synchronous manner; conduct a study on plans and route maps for building a railway connected to Lach Huyen international gateway port; call for investment in enhancement of capacity for storing, loading and discharging goods in focal railway stations for goods transport.

- Invest in expansion of Tan Son Nhat international airport, conduct a study on infrastructure construction and arrange traffic with the aim of reducing traffic congestions around the airport.

- Mobilize resources for investment, reform and improvement of traffic network infrastructure and upgrade Cai Mep – Thi Vai transshipment channel.

- Speed up the implementation of the project for investment in construction of Lach Huyen international gateway port (Hai Phong) and port clusters undergoing planning in local authorities.

-  Make step-by-step investment in inland waterway infrastructure towards complete settlement of blocked points on main transporting corridors; build inland ports with modern equipment, especially in Mekong Delta and Red River Delta.

- Conduct a study on how to develop a road system inconsistent with the planning and scale of development of systems of sea ports, inland ports, airports and railway stations. 

- Issue documents on guidelines for the Law on Road Traffic No.23/2008/QH12 in order to determine responsibilities of providers of goods transport by automobiles as requested in Clause 3 Article 73 of this Law.

- Conduct plausible planning on places of truck and container gathering and warehouses, including warehouses of postal enterprises.

- Set up a system of classification criteria and issue national standards for logistics centers.  Study and propose a numbers of support policies on development of logistics centers from the stage of investment to construction and putting them in operation.

- Carry out planning schemes and establish systems of warehouses, depots and logistics centers serving agriculture in areas of large-scale production of agricultural products and connect these areas to the logistics centers, sea ports and airports.

- Consider conversing medium and small-scale industrial parks and clusters in urban areas or agricultural land to infrastructure facilities serving logistics activities suitably for characteristics and circumstances of local authorities.

- Study and propose policies on land and investment procedures for speeding up the progress in implementation of logistics infrastructure projects.

2. Group of tasks for enhancement of shipping capacity

- Review and finish formulation of policies and regulations on transit and transshipment of foreign goods through Vietnam in a convenient and clear manner in conformity with international agreements to which Vietnam is a signatory for the purpose of taking advantages of economic geographic locations in provision of logistics services.

- Provide assistance in and promote dissemination of laws in order to raise the awareness and knowledge of postal service providers of logistics, e-commerce and application of technology in postal services with the aim of enhancing the capacity and meeting the delivery demand, especially for e-commercial goods. 

- Study and develop e-logistics models with the aim of improving the capacity for continuous delivery, especially for domestic and border-crossing e-commerce.

-  Arrange the working time in port authorities and customs authorities in n reasonable manner to assist enterprises in clearance and release of goods. 

- Apply electronic Delivery Order and e-delivery notes in operations of all ports, airports and logistics centers.

3. Group of tasks for enhancement of capacity and quality of logistics service provision

- Foster trade promotion in logistics services and strengthen international cooperation in logistics in order to develop border-crossing logistics services, firstly in the market of neighboring countries and ASEAN.

- Host logistics events and exhibitions in Vietnam, firstly is FIATA congress.  Provide assistance to and enable enterprises to participate in domestic and foreign logistics events and exhibitions.

- Give assistance to enterprises in opening their representative offices in foreign countries and making offshore investment for expanding their logistics service provision.

- Give assistance in startups of logistics service providers and enterprises studying and developing technology applied in logistics activities.

- Set up a set of index of regional logistics competitiveness.

- Add the logistics matter to annual investigation of Provincial Competitiveness Index (PCI); make a consolidated report on shortcomings and questions of logistics law sent to state management agencies by enterprises.

- Give assistance in providing market information for logistics enterprises.

4. Group of tasks for technology application and optimization of origin tracing capacity

- Update and monitor technological and creative indexes in order to improve the quality of logistics services, orient and encourage enterprises to pay attention to renovation and enhancement of technological and creative capacity, apply new technology for the purpose of adapting to the global value chain based-production.

- Provide assistance in study on, development and application of new and advanced technology in logistics activities to stay ahead of the curve in the international logistics market (such as block chain, automated guided vehicles, delivery-transport vehicles suitable for urban traffic, etc.) towards development of smart and environmentally-friendly logistics.

- Establish and finish a legal frame for operations of transportation trading floors and modes for application of technology in logistics activities, renovate management methods to facilitate these new modes.

- Establish and finish a system of national standards and national technical regulations on origin tracing and applied guiding documents; set up and apply a consistent origin tracing system throughout the country.

- Foster technology application to guarantee the capacity for origin tracing and goods monitoring during service provision.

5. Group of tasks for time shortening and cost reduction

- Review, propose annulment and simplification of irrational investment and business conditions.

- Promote administrative reform; raise the heads responsibility, tighten up administrative discipline and rules; terminate corruption and sectional interests which result in payment of unofficial costs by enterprises.  Take a firm line on dismissal of officials who ask for payment of unofficial costs by enterprises.

- Control, review and reduce charges and fees for infrastructure use which produces an effect on domestic transport and delivery of goods and import and export provided by most of enterprises.

- Work with foreign shipping agents to ensure charges for port services are logically imposed.

- Review and check BOT projects to ensure the rate of BOT charge is not too high and does not place a cost burden on enterprise when using BOT infrastructure.

- Speed up the application of online payment on online public service systems.  Wholly apply online payment in collection of costs for inspection of industry and trade, agriculture and healthcare.

- Collect road costs through online payment systems and banks transfer.

6. Group of tasks for enhancement of clearance quality

- Speed up the operation of national single-window system and increase the number of level 4 online public services provided in such system.

- Speed up the operation of ASEAN single-window system and connect it to commercial partners other than those in ASEAN.

- Promote reform and inspection of imported and exported goods with the aim of annulling and simplifying unnecessary procedures carry out risk assessment, change from prior inspection to post inspection; develop a mechanism for cooperating and certifying quality and inspection of goods transported between Vietnam and countries that enter into commercial agreements with Vietnam.

- Apply automation of procedures for customs supervision of goods imported and exported at all airway and waterway border checkpoints.

- Apply information technology in control of time for customs clearance.  Publicly disclose information about time for receiving applications and conducting customs procedures of each relevant ministry according to the time provided on the national single-window system.

7. Group of subsidiary tasks

- Cooperate with the World Bank in promptly and adequately providing and updating information and data for the purpose of assessing and ranking Vietnam’s LPI in an impartial and accurate manner.

- Carry out review of the code of logistics subject in order to properly reflect the nature of logistics services and enable training institutions to open and classify training courses in logistics.

- Promote alliance training programs; recognize credits and training for issuance of international certificates of logistics. 

- Diversify modes of logistics training such as e-learning, in-school learning in connection with filed study and on-the-job training.

- Provide assistance in investment in material facilities for logistics training (rooms for imitation of logistics activities, centers for application of information technology in handling and coordinating logistics activities, etc.).

- Make forecasts about demands for training and support and priority policies on development of qualified human resources for logistics industry.

III. IMPLEMENTATION

1. The Department of Import and Export shall:

a) Take charge and cooperate with Ministries and local government authorities in urging, checking and monitoring implementation of this Plan.

b) Make a consolidated report on assessment of annual implementation and a report on implementation of Decision No.200/QD-TTg dated February 14, 2017. 

2. Funding for implementing this Plan shall be allocated from state budget, enterprises’ capital, loans from credit institutions, international aids and other legal funding sources as regulated by laws.

3. Enterprises’ departments in charge of preparing detailed plans shall allocate budget and call for other legal funding sources as authorized and regulated by the law in force in order to perform tasks specified in the Appendix issued thereto and send quarterly reports to the Ministry of Industry and Trade for consolidation purpose.

Article 2. Implementation provisions

1. This Decision takes effect on the signing date.

2. Chief of the Ministry Office, Director of the Department of Import and Export, Directors of ministerial agencies and relevant organizations and individuals shall take responsibility to implement this Decision./.

The Minister

Tran Tuan Anh 

APPENDIX:ALLOCATION OF TASKS TO PRESIDING AUTHORITIES

(Issued together with Decision No.708/QD-BCT dated March 26, 2019 of the Minister of Industry and Trade)