“For Viet Nam, the Trade Facilitation Agreement could reduce trade costs by as much as 20%. Cutting a fifth off the cost of trading would make a huge difference. It will help to boost trade flows in Viet Nam. It will support SMEs to start exporting. And, in a time when production chains have been globalised, it will help the economy to connect to cross-border production networks.” Vietnam ratified the TFA in Dec 2015.
“Slow, uncoordinated customs processes raise the costs of trading, harming productivity and preventing many companies from being able to export at all.
“The Trade Facilitation Agreement aims to tackle precisely this issue.
“It will help to streamline, simplify and standardise customs procedures, thereby reducing the time and cost of moving goods across borders.
“Studies suggest that when fully implemented, this deal has the potential to increase developing countries’ merchandise exports by up to 730 billion dollars per annum.
“And for Viet Nam, the Agreement could reduce trade costs by as much as 20%. Cutting a fifth off the cost of trading would make a huge difference. It will help to boost trade flows in Viet Nam. It will support SMEs to start exporting. And, in a time when production chains have been globalised, it will help the economy to “connect to cross-border production networks.
“I welcome Viet Nam’s commitment to trade facilitation reforms — and the country’s ratification of this WTO Agreement in December last year.”
More efficient transport and logistics can play a significant role in increasing productivity. By making supply chains more predictable, better transport and logistics allow manufacturers, transportation carriers, logistics service providers, and trade regulators to minimize avoidable delays, thereby increasing output per unit of time while reducing the cost of doing business. Such competitiveness enhancements can better position Vietnam to benefit from global demand, to better serve domestic markets, to attract investment, and to generate quality jobs.
Trade facilitation, value creation, and competitiveness : policy implications for Vietnam’s economic growth, WB Report, July 2013, 3 volumes.
This three-volume report explores the role of trade facilitation and logistics in driving export and ultimately national competitiveness. It posits that this area of trade consists of three interrelated pillars: (i) transport infrastructure and logistics services; (ii) regulatory procedures for exports and imports; and (iii) supply chain organization. Transport infrastructure and logistics services relate to the physical aspects of trade flows. Logistics services include a variety of services, the most important of which are transportation, storage and consolidation. This summary is organized into nine sections. After the introduction, section two presents the conceptual framework for this study. The economic context under which trade facilitation is discussed is outlined in section three. It describes Vietnam’s evolving structure of trade and competitiveness. The country’s trade logistics is part of this structure and this is germane to understanding the key issues and solutions proposed. This is followed by discussion of the three pillars of trade facilitation in sections four to six and then section seven presents the institutional framework underpinning these pillars. Section eight then pulls together the diverse roles of government, such as setting policies, acting as regulator, and being the facilitator working in collaboration with key stakeholders. The conclusion, section nine, suggests a set of recommendations.