Golden opportunity for Vietnam logistics industry: EVFTA

According to World Bank’s 2018 Logistics Performance Index (LPI), Vietnam ranked 39/160 countries participating in the survey. This result had increased 25 positions compared to the ranking of 64 in 2016.

Significantly, Vietnam ranked first among emerging markets. Generally, almost LPI 2018 evaluation indices increased outstandingly, the highest one was service quality (ranked 33, up 29 grades), and goods tracking abilities (ranked 34, up 41 grades). The results showed that improving the capacity of enterprises has been taking remarkable steps through the applications of information technology to logistics services.

In the near future, when Vietnam successfully signs EVFTA, many benefits will spread to the development of Vietnam’s logistics industry. Center for WTO and Economic Integration: The impact of EVFTA on logistics development prospects would be presented in two angles: The first would be from Vietnam and EU’s commitment to open markets in the field of transport services. The second would be those commitments in areas that affect logistics services market.

When the commitments take effect, EVFTA can bring a great opportunity for Vietnam logistics industry. First of all, a significant reduction of tariff barriers could increase the volume of imports and exports between Vietnam and the European Union, thereby, increasing the demand for logistics activities and also being an opportunity to increase the scale of Vietnam’s logistics industry. The second would be an opportunity to attract investment from Europe, utilize the experience, management skills, capital, and available network of partners when entering into joint ventures with EU partners.

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