Vietnam, Japan establish dialogue mechanism in distribution, logistics

October 11, 2011 | 14:08

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The Vietnamese Ministry of Industry and Trade and the Japanese Ministry of Economy, Trade and Industry on October 10 signed a cooperation agreement to establish a policy dialogue mechanism in distribution and logistics.

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The mechanism will enable the two ministries to share experiences and solutions relating to policies, regulations, standards and technical assistance in these two fields.

Under the agreement, the two sides will also exchange delegations and organise seminars and other activities for managers, associations, businesses and other related organisations in the fields.

The Japan External Trade Organisation (JETRO)’s latest survey said high costs and prolonged transport time were major shortcomings in the logistics services of Vietnam and other ASEAN members.

In addition to the lack of deep-water sea ports and incomplete road infrastructural facilities, Vietnam has not yet developed aviation cargo transport and its railway system has not yet connected to seaport and economic and industrial zones.

However, Vietnam has great potential for logistics service development as its export revenues are forecast to exceed $200 billion in the next decade.

JETRO’s survey also pointed to the multi-layered distribution system in Vietnam, pushing up the prices of goods and services. Therefore, the new policy dialogue mechanism is expected to help improve the situation, benefiting both businesses and consumers.

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