Vietnam is increasingly asserting itself as an attractive destination for international import-export businesses. With its strategic geographical location, favorable business environment, and numerous free trade agreements, Vietnam offers significant advantages for transshipment activities. This article will analyze why Vietnam is an impressive transshipment point for foreign import-export businesses, based on reputable international and domestic news sources.
Strategic Geographical Location
- Gateway to the East Sea: Vietnam has a coastline of over 3,260 km with many deep-water seaports, facilitating international trade. (Source: Ministry of Transport)
- Regional connectivity: Vietnam is located in the heart of Southeast Asia, easily connecting to major economies in the region such as China, Japan, and South Korea.
- Diverse transportation system: Vietnam is strongly developing its road, rail, waterway, and air transport systems, creating favorable conditions for domestic and international cargo transportation. (Source: World Bank)
Favorable Business Environment
- Open-door policy: Vietnam pursues an open-door policy and international economic integration, creating favorable conditions for foreign businesses to invest and operate. (Source: Government Portal)
- Simple customs procedures: Vietnam has made efforts to reform customs procedures, applying information technology to simplify import-export processes, reducing time and costs for businesses. (Source: General Department of Customs)
- Competitive costs: Compared to many countries in the region, logistics costs, labor costs, and rental costs in Vietnam are relatively competitive. (Source: Statista)
Free Trade Agreements
- Extensive FTA network: Vietnam has signed 15 free trade agreements (FTAs) with many important partners around the world, including CPTPP, EVFTA, and RCEP. (Source: Ministry of Industry and Trade)
- Tariff preferences: FTAs offer many tariff preferences, helping to reduce import-export costs for businesses.
- Access to a large market: Through the FTA network, Vietnamese goods and goods transiting through Vietnam can access a large market with billions of consumers.
Logistics Infrastructure Development
- Modern seaports: Vietnam is investing heavily in its seaport system, increasing its capacity to receive large container ships. (Source: Vietnam Logistics Association)
- Example: Cai Mep – Thi Vai seaport is becoming an important international container transshipment hub.
- Diverse logistics services: Vietnamese logistics companies provide a variety of services, from transportation and warehousing to customs procedures, meeting the needs of import-export businesses.
- Logistics technology 4.0: Applying information technology, IoT, AI, etc. to logistics management helps to improve operational efficiency, reduce costs, and shorten transportation time.
Socio-Political Stability and Foreign Relations
- Stable political environment: Vietnam has a stable political environment with guaranteed security and order, creating peace of mind for foreign investors. (Source: World Bank)
- Consistent policies: The Vietnamese government maintains consistent and stable policies, creating favorable conditions for long-term business operations.
- Open foreign relations: Vietnam maintains good diplomatic relations with many countries around the world, especially major countries like the US and China. Vietnam is also a reliable partner of socialist countries. (Source: Ministry of Foreign Affairs) This helps create a favorable international business environment and minimizes political risks for import-export businesses.
Challenges
- Infrastructure upgrade: Although there have been many improvements, Vietnam’s transport and logistics infrastructure still needs to be further upgraded to meet the increasing demands of import-export activities.
- Improving competitiveness: It is necessary to improve the competitiveness of Vietnamese logistics enterprises, especially in terms of technology and service quality.
- Human resource development: Training high-quality human resources in the field of logistics is an urgent requirement.
Conclusion
With its advantages in geographical location, business environment, trade agreements, logistics infrastructure, socio-political stability, and open foreign relations, Vietnam is becoming an impressive transshipment point for international import-export businesses. By continuing to improve policies, upgrade infrastructure, and develop human resources, Vietnam can affirm its position as a logistics center in the region and the world.