Cai Mep – Thi Vai Inter-Port Road, Phu My 1 Industrial Park, Phu My Ward, Phu My Town, Ba Ria – Vung Tau.
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Improve efficiency, reduce transportation costs

Vietnam’s logistics costs are still high, in which road transport still accounts for a large proportion of expensive costs. In the difficult economic context, the burden of transport costs can make Vietnamese goods unable to compete well in international markets, making it difficult to take advantage of opportunities to increase exports when trade agreements take effect.

Difficult problem

According to the Directorate for Roads of Vietnam (VNR), after a lot of efforts by relevant ministries, the transport cost structure has barely changed much. Road transport still has to undertake a very large proportion of transport, not balanced with other modes of transport.

Specifically, car transport accounts for over 90% of the total passenger volume and over 70% of the total freight. Meanwhile, most of the transport units are small, fragmented, the proportion of empty cars is still over 45% … so transportation costs are very high.

Currently, the cost of transporting a 40feet container from Hanoi to Ho Chi Minh City is about 40 million VND, 9.7 times higher than shipping by sea, and 2.5 times higher than shipping by rail.

Ms. Tran Thi Hien, Deputy Director of the General Directorate of Vietnam Delta, also admitted that the operation of the transport exchange in the past 5 years has not met expectations when businesses are not interested in this form, leading to The proportion of empty cars is still high.

Mr. Tran Bao Ngoc, Director of the Transport Department (Ministry of Transport), said that reducing the rate of empty cars is an important factor to help improve transportation costs, but is still a very difficult problem. The Ministry of Transport has carefully studied the causes of the ineffective operation of the transport exchange and realized that, in the coming time, the transport exchanges need to change operations in a more convenient way for participants. There is a mechanism to protect the interests of the parties when there is a dispute, to support the payment of the contract.

Improve efficiency, reduce transportation costs

One of the factors that make the cost of transport soaring is the types of fees and charges on the road. In the voters’ comments sent to the Ministry of Transport recently, there are many suggestions for the Ministry of Transport to consider reducing the charges for using BOT road services in the coming time.

However, Mr. Tran Bao Ngoc said that the reduction of BOT fees is not feasible. The reason is that BOT businesses are also facing many difficulties due to having to reduce the fare for some vehicles and have not been increased according to the schedule in the project contract, the number of vehicles continues to decrease due to the impact of epidemics. The lower the collection of BOT stations, many projects did not ensure the payback fee collection time as specified in the signed contract.

Get more connected

The Ministry of Transport said that, in the immediate future, in order to help businesses overcome difficulties caused by the Covid-19 epidemic, the ministry has requested the Directorate of Delta to extend the time of using road services with monthly and quarterly tickets for means whose validity period coincides with the time of implementation of the social gap under the Prime Minister’s instructions.

In addition, the Ministry of Transport has also instructed units to reduce road maintenance fees from 10% to -30% for transport enterprises, to implement from 1-8 to 31-12-2020. However, according to the representative of the Vietnam Transport Association, the moves of the Ministry of Transport are not enough to solve the difficulties that transport enterprises are facing, which means that transportation costs are very difficult to improve. next time.

So how to reduce transportation costs to help businesses take advantage of opportunities to increase exports of goods when trade agreements take effect?

Before this question, Mr. Tran Bao Ngoc said that in the coming time, the Ministry of Transport will focus on strengthening the connection between road transport with other modes of transport to reduce the load for road transport, especially with coastal waterway transport, inland waterway transportation in the Mekong Delta, Red River Delta and with rail transport.

In particular, the dredging of maritime infrastructure systems, inland waterways is one of the effective solutions to remove bottlenecks in investment funding for this field.

At the same time, the Ministry of Transport will coordinate with local ministries, including Ho Chi Minh City, to increase investment in infrastructure to connect traffic around the port and access routes to major seaports, airports, railway stations, inland waterway ports, and cargo consolidation center on the basis of approved projects.

Along with that, the Ministry of Transport will coordinate with other ministries to develop mechanisms and policies to develop Vietnam’s logistics enterprises that can compete with foreign enterprises. A possible direction is to encourage large transport enterprises to actively cooperate with small transport enterprises operating at short distances, actively working with shippers to come up with suitable transportation options. transportation from the production place to the consumer in order to reduce transportation costs.

In addition, the freight exchange will have to overcome the current shortcomings to increase operational efficiency. However, the leaders of the Ministry of Transport said that in order to do this, it is necessary to have the support and close cooperation of transport enterprises and goods owners in the transaction on the floor.

Regarding the above issues, Prime Minister Nguyen Xuan Phuc assigned the Ministry of Transport to coordinate with relevant agencies to handle shortcomings and difficulties of the transport transaction floor; have solutions to improve efficiency, reduce transportation costs, especially freight.

Source: Saigon Giai Phong Newspaper online

Phu My Ports Management Joint Stock Company

Address: Cai Mep – Thi Vai Inter-Port Road, Phu My 1 Industrial Park, Phu My Ward, Phu My Town, Ba Ria – Vung Tau.

Representative office: The Galleria Office Building, 59 Hanoi Highway, Thao Dien Ward, District 2, City. Ho Chi Minh.

Phone: 02543.928.200

Email: info@otrangroup.com

Website: pmport.vn

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