Ba Ria - Vung Tau: Full development of logistics

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Decision 1360 dated July 2^nd, 2014 on Master Planning to Develop Provincial Logistics Sector to 2020, orientation to 2030 has been issued by the Prime Minister and the People’s Committee of BR-VT. This is considered as both an action handbook for the province and a supporting premise for the restructure of production and business of the industrial coastal province of the Southeastern.

New thoughts

On December 30^th, 2013, the Maritime Administration of Vietnam and Saigon New Port officially signed the contract of leasing CaiMep International Container Terminal in the time of 30 years.CaiMep-ThiVai project was approved by the Prime Minister by Decision 659/QĐ-TTg dated June 24^th, 2004. This is the project with the total investment of VND 12,891 bn, with two 600-meter berths that allow container vessels of over 11,000 tons to anchor and with a full logistics system for stevedoring.

The Administration allowed CaiLan Port- an organization in the Maritime sector-to lease the berths for exploitation. Now it is the State’s official policy to allow an organization from outside to lease the port – a complete change in seaport system management. That is an encouragement.

The Prime Minister, the People’s Committee of BR-VT has had policies that allow ports, organizations of production and business to develop 3PL logistics, e-logistics and e-commerce to catch up with the trend of globalization, gradually entering intellectual economy and aiming to the country’s sustainable development in the future.

Strong points of the sea-port province

Located by the East Sea, Vietnam should develop to be a sea-industry country. And it is a purpose that turns BR-VT to be a logistics base for Southern provinces and the sector will have supports to other provincial sectors as industry, trade, service, transport… It will also enjoy remarkable mechanisms and will be a key sector of the province and the Southern region after 2015.

About logistics infrastructure

Sea port infrastructure and the national transport system should be compatible; ensuring service providing at the present and logistics activities in the future, including international transshipment activities in CaiMep port (contract signed between Saigon Newport and the Maritime Administration of Vietnam) and in open economic zones (70-114 million tons pa). But from the lesson of Van Phong port, will there be enough cargo for transshipment in CaiMep-ThiVai? There should be appropriate answer for the issue.

About forming logistics centers

It is urgent that logistics centers be founded in scheduled sequence: CaiMep Ha, Sao Mai- Ben Dinh, Phu My, CaiMep-ThiVai port… And it is noticeable that regional delivery centers will be founded at the same time with transshipment zones and international transshipment centers. For further future, there should be permissions for open economic zones, non-tariff zones and free ports- important points for effective activities of transshipment ports and 3PL logistics in the future.

About transport infrastructure structures

Keep improving transport infrastructures at deep-water sea ports and building express ways, railways and internal roads in seaport systems, connecting with those of national and regional systems. Develop IDCs of logistics operators and complete transport hubs of Southern region.

About Information Technology

Make good use of international IT network and information gateways at logistics centers and deep-water ports. Establish information receiving and transmitting systems to connect to regional and international seaport systems. In short, in the age of information, winners are those who make good use of information for production and business.

A Clear Legal Corridor

One of important matters of logistics is having an appropriate clear legal corridor, unconditionally connected to the outside world. Although ours is one with many rules and principles, it is not appropriate enough and not clear enough. Vietnam’s Trade Code, Maritime Code and other documents sometimes trouble clearance and import-export processes. Either changing or adjusting them requires complicated and long processes. Thus, the matter of a clear legal corridor is one that leaders have to pay much attention to find solutions. Without law-abidingness, all States’ activities will surely in stagnation. “Basic issues belonging to sea port system will be basically completed in 2016 and stabilizing logistics system and production supply chain will be carried out in 2017-2030”. That is too late. We should resolve legal issues- issues belonging to “soft structure”- at the same time with building infrastructures to Vietnam’s sea economy- issues belonging to “hard structure”.

Planning of logistics development of BR-VT: A work of reality

In general, the Decision to approve the Master Planning of Logistics Development of BR-VT Province to 2020, orientation to 2030 of the Chairman of the provincial People’s Committee is a seriously prepared work in terms of reality and science, especially in a coastal province where the oil industry bloomed in the time of restoration. It can be used as a guidance for economic development in the province.

Different from other plans of sectors and regions that the writer has studied, the planning states clearly responsibilities and works of each services, department and sectors (in content of the Planning III).

Advice from the writer:

1. Make good use of the roles of general staffs, among which are Investment Centers (experience from KhanhHoa province), the Service of Transport, and the Service of Trade. They are ones that make logistics activities effectively, connecting to other functional organizations of macro level.
2. Rules should be at the first place. The provincial People’s Committee is not law makers; it is the one who implement the law in the province. Transport fare, stevedoring fare, navigation way fee should have approval from the province.
3. Data and information is rich, but their accuracy and sources of them are decisive factors.
4. By Ngo Luc Tai