The thesis aims to determine the impact of the EVFTA agreement on businesses and economies. Logistics services are one of the economic development prospects that bring positive results to the country.
The purpose and objectives
This chapter introduces the aim and objective of the thesis so that the approach of subsequent problems is specific and confident. These methods are used throughout the thesis so that the authors have effective means to explore particular parts of the problem.
The framework of the project
First, let's go through the history of logistics to understand how logistics evolved from simple activities such as delivering products to a complex management system. Second, there will be a specific knowledge of a modern logistics management system that provides insight into how the management system actually works effectively.
Concept of Logistics
In manufacturing, logistics is defined as supply chain - a chain of operations with the aim of always ensuring raw materials, equipment and machinery for the smooth operation of business efficiency and continuity. At the organizational level, there are questions we also need to answer, such as the direction the inputs go from the beginning to the end of the supply chain, whether the inputs should be shipped or stored.
Logistics for freight forwarding
Since logistics is included in the above-mentioned processes, this activity will help companies improve the process of finding input materials and optimize the output for companies. This will help companies significantly reduce costs and improve their quality and competitive advantage over other competitors.
Logistics service provider
Management of Logistics
The end result of the process is the added value of the exchanged product/service. Timely transportation and delivery of products/goods will help increase the value added of the products and increase the value and reputation of the business.
Methods of Logistics management
Conclusion of this chapter
At Expeditors, the company will provide highly optimized and personalized supply chain services to customers with the latest technology systems integrated through a global network of 176 district offices in 60+ countries across six continents. The company does not own any shipping, so customers can understand the company as a 4PL company.
The process of formation and development
Vietnam does not have any company that can organize and carry out the whole process in this field. And Expeditors has recognized the situation in Vietnam and has taken action by establishing the company with its first office in Ho Chi Minh City.
Organization structure
Therefore, ocean freight has always played an essential role in the import and export activities of the world when people knew how to exchange goods with each other. Furthermore, there are many advantages when Expeditors focuses on Ocean Freight, such as the ocean transportation system is very large and ships can easily reach anywhere in the world. On the other hand, there are some large companies that have "jumped" into ocean freight services such as DB Schenker.
DB Schenker is among the top three sea freight forwarders in Vietnam, sea transportation has expanded to 130 countries;.
Advantages and disadvantages of the company
Advantages
To support the profits over the years, Lao Cai port is one of the key activities that are gradually completed and put into operation, bringing prosperous results to the company. The reason why Expeditors usually carry out logistics activities through Lao Cai Port is Lao Cai Province, which is the hub between Northern Vietnam and the rest of ASEAN. In contrast, goods from China to Vietnam are easily transported to Hai Phong, Hanoi and other provinces throughout the country, as well as to ASEAN countries and the world.
In addition, Lao Cai ICD Port is also the only northern inland port connected to the national railway of Lao Cai - Hai Phong - Cai Lan Port - Saigon Port and other provinces in the country which has a chain of railway, inland sea and road transport combined. .
Disadvantages
Moreover, the volume of cargo and the flow of goods are also significantly increased with the income. As a result, the Vietnam market becomes more attractive to foreign investors (increasingly more competitive) when FDI is attracted to this sector in the first six months of 2019 which passed the figures of whole and the average of the previous 5 years.
Factors that affected logistics services of a company
- Geography
- Infrastructure of Viet Nam
- Regulatory environment
- Human Resources
- IT development
- International economic integration
More than 40 years of building and striving for the Suider group has made great progress on the path of development and integration and meets the increasing demands of the cause of industrialization and modernization of the country. In 2018, the airports of the Southern Airport Group served more than 9 million passengers, of which Tan Son Nhat International Airport served 8.5 million guests alone. More than 40 years of building and striving for the Southern Airport Group has made great progress on the road of development and integration, meeting the increasing demands of the cause of industrialization and modernization of the country.
Without or in an unclear legal system, it is difficult for companies to achieve the desired results.
Business situation
EU-VN Bilateral trade relation
Vietnam is the EU's second largest buying and selling partner in ASEAN. revenue reached USD 56.45 billion in 2019, of which Vietnam's exports to the EU grew at an average rate of 16% over the past two decades. In addition, Vietnam and the EU also share many parallel interests, coordinate closely in forums and multilateral mechanisms, actively contribute to promoting multilateral cooperation and international order based on law, for peace, stability and development, promote trade and investment liberalization and respond to global challenges. In recent years, Vietnam's main export countries in the EU market have still focused on traditional markets such as the Netherlands, Germany, Great Britain, France, Italy, Spain, Belgium and Poland.
For the Austrian market, the export turnover to this market is mainly due to the export of mobile phones.
What is EVFTA?
After a long time from the date of entry into force of the Agreement, the EU will annul import obligations on 99.2% of tariff lines, comparable to 99.7% of Vietnam's tariff turnover. This advantage is particularly significant when the EU is consistently one of the two largest trade markets of Vietnam today (European Commission. Regarding government procurement, Vietnam and the EU have agreed on equivalent content to the Government Procurement Agreement (GPA) of the WTO.
As for the signs, when the agreement is reached, Vietnam will provide more than hundreds of topographical signs of the EU (numbering 28 people) and the EU will secure geological signs of Vietnam.
Importance and its impacts on Vietnam’s logistics
Logistics in Viet Nam before EVFTA
However, human resources are not qualified enough, especially highly qualified human resources at management level, good logistics specialists, knowledgeable about international law and able to apply and develop into projects in the company. However, according to the judgment of nearly 80% of experts in the survey of Vietnam Report, ahead of the digital trend, enterprises in the transportation and logistics industry in Vietnam will gradually adapt, promote research and application of technology. Director of Nam Hai Port - Dinh Vu (Hai Phong) said that this port is currently one of the ports with the largest number of containers in stock in the North with 1,700 containers without export clearance.
In order to free up the yard to maintain the receipt of goods, the port has moved these containers to a dry port for temporary storage, counting on the period of 2-3 years.
Logistics in Viet Nam after EVFTA
Nam Hai - Dinh Vu Port has a capacity of 10,000 Teus, but the quantities of containers in stock are more than 3,500 Teus, accounting for more than one-third of the capacity at the port (FIGURE 3). This agreement also helps to promote relations between the EU and each ASEAN country in particular and the ASEAN bloc in general, and creates a starting point for the discussion of an FTA between the EU and ASEAN in the future. At the Vietnam – Netherlands Waterway Cooperation Roundtable seminar, Vietnam Logistics Business Association (VLA) will also present a presentation to let Dutch businesses understand the current situation of Vietnam's logistics service industry in general and the agricultural logistics service industry of Vietnam's Mekong River Delta , immediate problems and development direction of agricultural logistics services to find a way to optimize connectivity to facilitate economic development and connect cohesion with places in the country to develop trade.
After the EVFTA Agreements, the remaining goods currently tend to decrease, due to the remaining goods remaining after being registered in customs declarations to carry out the procedures for exporting goods to Europe according to the regulations; and up to 5,000 containers are released at the port.
EVFTA for foreign logistic enterprises
But they are appearing in the current reality, as companies like Tesla and Google have developed self-driving cars that use AI technology. Currently, the technology still requires human control, but it is still expected to be fully automated in the future. Other logistics-specific applications such as fleet management will benefit from the 5G standard and potentially deliver greater efficiency in the supply chain.
Russell Reed, CEO of UPS Vietnam and Thailand, said that the EVFTA marks an important turning point in the process of becoming Vietnam's trade powerhouse and is key to unlocking growth potential (Columbus, 2020).
EVFTA for domestic company
Statistics from the Ministry of Planning and Investment show that the majority of Vietnamese companies still do not care about intellectual property rights issues, while this is the EU's top requirement for any Thailand is one of ASEAN's important transport and logistics hubs and a leading country in the logistics sector in Southeast Asia. In addition, there is also a short introduction on the bilateral trade relationship between the EU and the VN, which goes through different moments in history from the first framework agreement to one of the largest trading partners.
Available at: http://tapchitaichinh.vn/su-kien-noi-bat/co-hoi-va-thach-thuc-tu-evfta-doi-voi-doanh-nghiep-viet- nam-330219.html.
