Description |
According to the World Bank Logistics Performance Index
(LPI) (2012) which measures countries’ trade logistics efficiency, Viet Nam is
ranked 53rd out of 155. Viet Nam performs better than the averages of Asian and
lower middle income countries except in logistics competence, which concerns the
quality of logistics services. This finding is supported by the OECD Trade
Facilitation Indicators (2013), which finds that Viet Nam outperforms in the
areas of: involvement of the trade community and appeal procedures, while it
needs to further improve in fees and charges and border agency cooperation.
Export competitiveness has been seemingly affected by transport infrastructure
deficiencies and increasingly higher fees and surcharges on foreign firms that
dominate Viet Nam’s overseas shipping market. Compared to its regional
competitors, Viet Nam has a relatively inefficient and expensive transport
system. The road network consists predominantly of unpaved, narrow, local road
sections; therefore, traffic is greatly affected by environmental and weather
conditions. Moreover, according to the World Bank Doing Business Report (2013),
exporting one standard container of goods takes 21 days and costs USD 610 in
Viet Nam. However, it takes 11 days and USD 450 in Malaysia; 15 days and USD 585
in Philippines; and 14 days and USD 595 in Thailand. No significant business
reform has been undertaken by Viet Nam for trading across borders since 2010
when it increased competition in the logistics industry as a part of the WTO
membership reform program. (WTO 2013a; World Bank 2013).
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Logistics Performance Index – Evolution |
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