The expected execution of the EU-Vietnam Free Trade Agreement in 2020 will create great pressure on Vietnamese logistics businesses (Photo: VNA)
Hanoi (VNA) – The expected execution of the EU-VietnamFree Trade Agreement in 2020 will create great prᩚᩚᩚᩚᩚ🃏ᩚᩚᩚᩚ𒀱ᩚᩚᩚessure on Vietnamese logistics businesses,insiders said.
When the deal comesinto effect, it would open the door wide to EU logistics service providers toenter Vietnam, and provide protection for them.
Meanwhile, the domestic logisticsfirms have limited competitive capacity.
Howe♑ver, economists said increasing competition will force thedomestic firms to reform and enhance their capacity.
Greater competition in the logisticsector would also allow the manufacturingand processing industries to access better logistics services atmore reasonable costs, thus cutting production costs and increasing price competitivenessof made-in-Vietnam goods,especially those destined for exports, said Nguyen Thi Thu Trang, director ofthe Vietnam Chamber of Commerce and Industry (VCCI)’s World Trade OrganisationIntegration Centre. Under the EVFTA, Vietnam will open the market for EU investors in termsof aviation, land, railway, sea, inland waterway transport and some supportingservices of transport. The country also commits to providing equaltreatment to EU investors and service providers. Logisticscosts in Vietnam at present account for 20-25 percent of the country’s annual GDP, specifically 12 percent of the cost of aquatic products, 23 percent for wooden furniture, 29 percent for vegetables, and 30 percent for rice, much higher than that in Thailand,Malaysia and Singapore. Trang said to takeadvantage of the opportunities and cope with the challenges from the EVFTA,businesses need to understand clearly the commitments under the deal soas to identify threats, thus building plans to improve their service qualityand professionalism.
Besides applying the latesttechnologies to increase information connection, logistics firms should improvehuman resources training and make use of cooperation opportunities withEuropean investors.
Businesses should also find appropriate channels to expand their linkages with other logistics service providerssuch as shipping lines, commercial and insur🤪ance agents, while actively joiningthe formulation of the State's policies on management of logistics activities and related ones such as customs, industryand trade.
Vietnam ranked 39th out of160 countries in the World Bank’s 2018 Logistics Performance Index, a big jumpfrom two years earlier when it was 64th. The Ministry of Industry andTrade is aiming to raise Vietnam’s ranking by five to 10 places by 2025./.
The recent ratification of the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) by the European Parliament is expected to create a change in the flow of foreign direct investment (FDI) from the EU into Vietnam.
The EU-Vietnam Free Trade Agreement (EVFTA) is a new stride in the country’s integration process and also an important solution to achieve growth targets of the industry and trade sector amid adverse developments in the global environment.
The European Union-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA), scheduled to become effective in July, will help improve Vietnam’s business and investment climate and boost its institutional reform, thus contributing to fostering its growth in a long term, according to an official.
Experts are optimistic about industrial property development prospects in Vietnam, given the country’s rapid integration and improving investment climate.
With the current trading band of +/- 5%, the ceiling rate applicable for commercial banks during the day is 26,276 VND/USD and the floor rate 23,774 VND/USD.
The event aimed to update businesses on new regulations and compliance requirements regarding US tax, trade, and customs policies, while offering practical solutions to facilitate exports amid shifting trade dynamics.
The festival marks a significant milestone in promoting the brand, value, and legacy of traditional fish sauce - a product deeply rooted in the island’s identity and history spanning over 200 years.
According to Mastercard data, Vietnam has recorded a remarkable 92% compound annual growth rate (CAGR) in contactless transaction volume from Q4 2022 to Q4 2024.
Tuan expressed his confidence that LH, with its expertise and experience, would swiftly implement the urban area project, contributing to a modern urban landscape for the province.
With its strategic location, abundant workforce, and modern infrastructure, Vietnam holds significant potential to become a leading centre for power and electronics production in the region and the world.
The renewable energy workforce training and development centre, invested by Germany's GEO Group, is expected to be a cornerstone in shaping Binh Dinh as a renewable energy and innovation hub in central Vietnam, meeting the growing demand for skilled technical personnel in offshore wind, solar farms, and green hydrogen projects.
A notable trend is the shift toward satellite regions. With land scarcity and soaring prices in Ho Chi Minh City and Hanoi, investors are eyeing provinces like Hung Yen, Bac Ninh, and Hai Phong, which are benefiting from improved technical infrastructure and transport connectivity.
To further strengthen private-sector innovation, Bac Ninh plans to accelerate administrative reforms, build a digital, service-oriented government, and develop an integrated innovation ecosystem that connects businesses with domestic and international institutions, universities, and experts.
The participation of H&M, one of the world's largest fashion corporations, in Vietnam International Sourcing 2025 in Ho Chi Minh City in early September is considered a special highlight, opening up many cooperation opportunities for Vietnamese businesses in the fashion, textiles and sustainable supply chains.
This latest order builds on a previous agreement signed at the Singapore Airshow last year for 40 engines, bringing the total number of Trent 7000 engines ordered by the airline to 80.
Minister of Industry and Trade Nguyen Hong Dien acknowledged that despite concerted efforts by ministries and local authorities in combating fake and substandard goods, the situation remains highly complicated, attributing the persistent challenges to high profits luring numerous participants, increasingly sophisticated violations, limited resources within enforcement agencies.
The group also placed among the Top 5 energy companies in Southeast Asia and secured the top spot among the largest Vietnamese enterprises featured on the list.
The zone will cover 1,881 ha, comprising functional areas for production, logistics, trade and services, digital technology industry, information technology, and innovation.
Dung underlined several key objectives, including a comprehensive review of the legal framework governing SOEs, and called for updates that reflect international standards and support modern, transparent governance.
The expected execution of the EU-Vietnam Free Trade Agreement in 2020 will create great pressure on Vietnamese logistics businesses (Photo: VNA) 
