Resolution 163/NQ-CP 2022 improve competitiveness of and develop logistics services in Vietnam

RESOLUTION

On intensification of the synchronous implementation of major tasks and solutions to improve competitiveness of and develop logistics services in Vietnam^[1]

THE GOVERNMENT

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the Government’s Decree No. 39/2022/ND-CP of June 18, 2022, promulgating the Working Regulation of the Government;

Pursuant to the Government’s Resolution No. 11/NQ-CP of January 30, 2022, on the Program on socio-economic recovery and development;

At the proposal of the Minister of Industry and Trade,

RESOLVES:   

In 2021, the world saw complicated and unpredictable developments and the fourth outbreak of the Covid-19 epidemic in our country greatly impacted goods production, trading and circulation activities of domestic enterprises. In such context, the Government, ministries, sectors and localities have promptly enacted many logistics-related policies in order to guarantee the role of logistics in maintaining the goods and service supply chains on the one hand and set new breakthrough orientations for Vietnam’s logistics sector on the other hand, thus contributing to relieving the pressure during the period of social distancing to fight the pandemic and promoting the recovery and sustainable development of the national economy.

Notwithstanding numerous difficulties and challenges, Vietnam’s logistics sector has recorded positive achievements, such as improved legal framework and institutions on logistics, and elevated role of the logistics sector in the national economy based on orientations set in the Resolution of the XIII^th National Party Congress. The sector has made not a few active contributions to economic activities, especially import and export activities as the spotlight (with the record total import and export turnover of USD 668.5 billion in 2021, an increase of 22.6% over 2020, and USD 616.3 billion in the first 10 months of 2022, an increase of 14.06% over the same period of 2021). Logistics infrastructure facilities have been improved as they received greater attention from the Government, ministries and sectors to serve domestic goods production and circulation activities and import and export activities. Training and technology application activities and other activities have actively supported logistics services, with more and more schools, universities, institutes and training institutions engaged in logistics training, logistics training curricula upgraded to provide in-depth and professional training, and technological solutions applied to improve the management of warehouses and storing yards, vehicles and cargoes, thereby facilitating better and quicker provision of logistics services. The implementation of the dialogue mechanism between state management agencies in charge of logistics and enterprises as well as information and communication activities aiming to develop and attract investment in logistics services have been intensified. The role and voice of logistics associations and logistics service providers have been strongly promoted.

In addition to the aforesaid achievements and pros, logistics operations of Vietnamese enterprises have not yet fully tapped their geo-economic advantages and potential of domestic localities; infrastructure facilities for logistics activities and connection of commercial, transport and information technology infrastructure facilities in the country and between the country and regional countries have not yet been highly effective, leading to inadequacies and irrationalities in logistics activities, such as too high logistics costs, particularly ocean freight rates, thus causing great difficulties to import and export activities. Disruption, disorder and partial backlogging have been seen in supply chains in transportation, particularly road transportation and sea shipping. The construction progress of a number of logistics infrastructure projects has been behind schedule. The maintenance of transport infrastructure facilities, particularly road infrastructure, has not been carried out timely and synchronous every now and then.

Main causes of the above drawbacks were outbreaks of the Covid-19 epidemic in almost all domestic localities, making it difficult to supply supplies and materials, particularly goods and materials needed to be imported, and making it impossible to mobilize human resources for construction works and projects during periods of social distancing in provinces and cities; and uncoordinated disease prevention and control activities in some localities which have affected the circulation of goods and construction materials. These have exerted serious impacts on the implementation and capital disbursement progress of projects, including those using public investment funds. Besides, existing weaknesses of Vietnamese enterprises are high service costs and low service quality on the fiercely competitive market; limited size, capital and corporate governance experience and level, and information technology and human resource capabilities not up to global requirements. Vietnamese enterprises also lack stable goods sources due to the fact that they mainly imported goods at CIF prices and exported goods at FOB prices and faced impediments regarding logistics infrastructure facilities and road transport and seaport surcharges imposed by foreign shipping companies. The contingent of state management officials in charge of logistics remains limited in terms of quantity and qualification; many of them have not yet been trained in logistics and had to work on a part-time basis; the state payroll for personnel in charge of logistics management remains limited, thus leading to their low-quality performance. The task of coordinating and developing national logistics services has been included in the tasks of the National Steering Committee for ASEAN Single-Window Mechanism, National Single-Window Mechanism and Trade Facilitation since 2019 and the Ministry of Industry and Trade has been assigned to designate a focal-point agency to organize the performance of the national logistics coordination and development task. However, so far the Ministry of Industry and Trade’s full-time division in charge of logistics has not yet been established, causing limitations in the national logistics coordination and development work.

In the coming time, the world and the region will witness complicated, unexpected and unpredictable developments, especially those caused due to the consequences of the Russo-Ukrainian conflict. It will become harder for the global economy to recover, with growth expectations for 2022 lower than those for 2021. The international financial and monetary markets will bear more risks with higher inflationary pressure and increasing prices of materials, petrol, oil and other essential commodities. The Covid-19 epidemic will remain in place with complicated developments. Meanwhile, climate change, disasters, storms, floods, and extreme weather phenomena will become unforeseeable and be likely to exert great impacts on production activities and people’s life.

In that context, the Government requests ministers, heads of ministerial-level agencies and government-attached agencies, and chairpersons of provincial-level People’s Committees to continue directing the synchronous, uniform, timely and effective implementation of tasks and solutions set forth in resolutions of the Party Central Committee, National Assembly and Government and directions of the Prime Minister, the Prime Minister’s Decision No. 221/QD-TTg of February 22, 2021, amending and supplementing Decision No. 200/QD-TTg of February 14, 2017, approving the Plan of Action to improve competitiveness of, and develop, Vietnam’s logistics services through 2025 (below referred to as Decision No. 221/QD-TTg), and the Government’s Resolution No. 11/NQ-CP of January 30, 2022, on the Program on socio-economic recovery and development, thus contributing to helping the economy overcome difficulties, reducing logistics costs to meet the economy’s operation requirements in the new period and not to miss the pace of the global economic recovery and, at the same time, creating foundations and favorable conditions for the development of logistics services in particular and the whole economy in general through 2025 and subsequent years.

The Government uniformly directs ministers, heads of ministerial-level agencies and government-attached agencies, and chairpersons of provincial-level People’s Committees to focus on the intensified and synchronous implementation of viewpoints and major tasks and solutions to improve competitiveness of, and develop, Vietnam’s logistics services as follows:

I. VIEWPOINTS

1. Logistics is an important service sector in the general structure of the national economy, playing the role of supporting, connecting and promoting socio-economic development of the whole country as well as every locality, thus contributing to improving the competitiveness of the economy.

2. To develop logistics services into a service sector that can bring about high added value, and combine logistics services with the development of goods production, import, export, domestic trade, transport infrastructure facilities and information technology.

3. To develop the logistics service market, focusing on improvement of competitiveness of logistics service providers.

4. To bring into the fullest play geographical location advantages and consolidate connections so as to help Vietnam become an important logistics hub in the region.

5. To develop logistics services associated with sustainable supply chains, improvement of human resource quality, and intensification of digital transformation and technological application.

II. MAJOR TASKS AND SOLUTIONS

1. Within the ambit of their functions, tasks and powers, ministers, heads of ministerial-level agencies and government-attached agencies, and chairpersons of provincial-level People’s Committees shall:

a/ Base themselves on working programs of the Party Central Committee, Political Bureau, Secretariat, National Assembly, National Assembly Standing Committee, and Government to concentrate resources on expeditiously organizing the performance of their tasks assigned under Decision No. 221/QD-TTg, ensuring the satisfaction of quality and progress requirements.

b/ Take the initiative in handling arising matters according to their competence or report them to competent authorities under regulations, and take total responsibility before the Government and Prime Minister for the satisfaction of progress and quality requirements.

2. The Ministries of Industry and Trade, Transport, and Finance and related agencies shall closely monitor international and regional developments, promptly analyze and evaluate impacts on our country’s economy and, on that basis, take the initiative in developing scenarios and response plans and direct and administer logistics activities to effectively serve domestic goods production and circulation activities and import and export activities.

Ministries, sectors and localities shall firmly grasp the situation and promptly detect and solve problems arising in logistics activities which are likely to adversely impact socio-economic activities in the fields falling under their state management.

3. The Ministry of Industry and Trade shall:

a/ Urge ministries, sectors, localities and associations to organize synchronous and radical implementation of solutions, mechanisms and policies with a view to comprehensively and effectively implementing the Plan of Action to improve the competitiveness of, and develop, Vietnam’s logistics services through 2025, under the Prime Minister’s Decision No. 200/QD-TTg of February 14, 2017, and Decision No. 221/QD-TTg.

b/ Review and evaluate the implementation of the Government’s Decree No. 163/2017/ND-CP of December 30, 2017, on provision of logistics services, and propose amendments and supplementations thereto in case of necessity.

4. The Ministry of Transport shall:

a/ Assume the prime responsibility for, and coordinate with ministries, sectors and localities in, implementing transport components of the national overall master plan and regional and provincial master plans, thereby making transport infrastructure facilities serve the objective of developing the logistics service sector and ensuring compatibility with logistics centers, inland container depots and bonded warehouses in a uniform system.

b/ Enhance connections, reasonably develop transport modes, and bring into the fullest play multi-modal and cross-border transportation with a view to reducing costs and improving transport service quality; and develop a cargo transport service exchange in association with e-commerce toward green logistics development.

5. The Ministry of Finance shall:

a/ Continue reviewing, and tackling problems in, tax, charge and fee policies and service charge rates in order to create favorable conditions for logistics service providers.

b/ Assume the prime responsibility for, and coordinate with other ministries and sectors in, intensifying activities to facilitate trade, reform customs procedures, reduce and simplify specialized inspection procedures, standardize dossiers, and organize the realization of commitments in the WTO’s Trade Facilitation Agreement.

c/ Balance and allocate funds for recurrent expenditures in annual state budget estimates according to the current regulations on state budget management decentralization and the Law on the State Budget and guiding texts for ministries and central agencies to organize the performance of logistics-related tasks to be covered by the state budget’s expenditures.

d/ Assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in, studying amendments and supplementations to the Decisions on establishment of the National Steering Committee for ASEAN Single-Window Mechanism, National Single-Window Mechanism and Trade Facilitation (Decision No. 1899/QD-TTg of October 4, 2016, and Decision No. 684/QD-TTg of June 4, 2019) and the Working Regulation of the National Steering Committee for ASEAN Single-Window Mechanism and National Single-Window Customs Mechanism (Decision No. 55/QD-BCDASW of May 23, 2012) in order to make them suitable to reality and, at the same time, avoid overlaps in the performance of the national logistics coordination and development task, then report thereon in December 2022 to the Prime Minister for consideration.

III. ORGANIZATION OF IMPLEMENTATION

1. Ministers, heads of ministerial-level agencies and government-attached agencies, chairpersons of provincial-level People’s Committees, and presidents of related associations shall:

a/ Within the ambit of their assigned functions and tasks, seriously organize the efficient performance of the tasks set forth in this Resolution; promptly propose or report arising matters falling beyond their competence to the Government and Prime Minister for consideration and decision.

b/ Annually review and evaluate the implementation of this Resolution within the ambit of their assigned functions and tasks, then send reports thereon to the Ministry of Industry and Trade before November 30 for summarization and reporting to the Government in December.

2. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with related ministries and agencies in, urging, monitoring, evaluating and examining the implementation of this Resolution.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
LE MINH KHAI