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POLICIES TO ENCOURAGE INVESTMENT IN LOGISTICS
In the context of the market economy and the trend of trade liberalization, the trend of opening up and economic cooperation with other countries is paid special attention. At the same time, logistics is also an industry of interest in the Vietnamese economy. Therefore, the Government has many policies to encourage investment in logistics. To learn more about the policy to encourage investment in logistics, please read this article of Siglaw
Overview of logistics in Vietnam
In recent years, logistics has been assessed as a field that plays an important role and creates great and positive influences on the economic development of Vietnam. Currently, Vietnam’s logistics industry has more than 1,000 domestic enterprises and many foreign companies participating in operations. After joining the WTO, Vietnam gradually became one of the leading “destinations” of famous logistics companies in the world such as DHL, MOL Logistics, DB Schenker, APL Logistics,… Up to now, Vietnam has 75 logistics centers concentrated in 16 provinces and cities of the country.
In addition, in 2019, Vietnam has set out a chapter with the policy of mobilizing private capital to invest in infrastructure through the transfer of the right to exploit some infrastructure for logistics and has attracted many large investors with deals with billions of USD.
Policies to encourage investment in logistics
Attach importance to the development of legal regulations on investment encouragement for the logistics sector
The Government still focuses on the provisions on investment incentives and investment support in the 2020 Investment Law. The Law has perfected the current provisions of the Law on Investment on investment preferential industries as well as principles and conditions for applying investment incentives to both attract more foreign investors and ensure that such investment projects are of high quality, focusing on industries using high technology, modern techniques, large-scale production projects,…
In 2017, Decree 163/2017/ND-CP regulating logistics service business officially took effect, replacing Decree 140/2007/ND-CP. This Decree has expanded and relaxed business conditions for logistics services, at the same time, regulations on liability limits for traders providing logistics services have also been implemented more appropriately, contributing to encouraging domestic and foreign investors to invest in logistics in Vietnam.
Promote the development of infrastructure for the logistics industry
In general, the infrastructure system for logistics in Vietnam has now made positive changes with many large and modern projects put into operation. However, the reality is still not immune to some difficulties. With the aim of encouraging investment in logistics and alleviating difficulties, the Government has introduced many infrastructure development policies such as:
- Focus on investing, building and upgrading logistics centers with advanced and modern equipment, applying science and technology
- It is necessary to clearly define the priority of logistics development in provincial and regional plannings
- Continue to effectively implement the policy of socialization of resources and forms of investment in order to promote infrastructure development
- Proactively establish a clean land fund for logistics enterprises
Localities that thrive in the logistics sector offer many policies to encourage investment
With the strength of terrain close to the sea, there are many large foreign and inland ports, some localities such as Hai Phong, Binh Duong, Ba Ria Vung Tau,… is growing strongly in the field of logistics. Taking advantage of the development along with existing strengths, these provinces and cities have launched policies to encourage investment for logistics enterprises with the aim of making this field more and more developed in the next 20 years.
In Ba Ria Vung Tau, this province always considers this a new economic sector with development strengths. Ba Ria Vung Tau still focuses and prioritizes the planning of land fund for BRVT Logistics Center and some functional areas in Cai Mep Ha Logistics Center. The province also offers many mechanisms and policies to encourage investment in the logistics sector such as: supporting investment attraction, reducing logistics costs, incentives on land rent, land use levy, simplifying administrative procedures. Specifically for investment attraction policies, Ba Ria Vung Tau encourages the establishment of logistics enterprises, reduces personal income tax for those working in the taxable logistics sector, promotes the development of business joint ventures, increases mobilization of investment capital sources in logistics infrastructure.
In Binh Duong, this province aims in the period of 2020 – 2030 to develop and plan 05 more river ports including: Rach Corn Port, Ben Suc Port, An Tay Port, Thanh An Port, Phu An Port. At the same time, continue to promote the construction of the second phase of Di An Logistics Center project and establish a 70ha distribution warehouse system at Thu Dau City 1. Binh Duong also set the goal of developing 03 new ICDs: Vinh Tan, An Dien, Thach Phuoc and developing ring routes with the aim of increasing the connection of the whole transport network between Binh Duong and the Southeast region.
To achieve these goals, leaders of Binh Duong province assigned each department and department to undertake the development of policies related to logistics:
- Department of Transport: Develop a project calling for investment in the ring road system to create regional links between Binh Duong and southern key regions; coordinate with other departments and departments to come up with plans for river port development,…
- Department of Industry and Trade: Preside over and coordinate with relevant departments in advising the Provincial People’s Committee to promulgate preferential policies, attract, encourage and select domestic and foreign investors for logistics service business projects; Develop regulations on coordination in management of the logistics industry in the province
- Department of Planning and Investment: Take the initiative, coordinate with other departments to manage Vietnam – Singapore Industrial Park, at the same time, develop an innovation program to attract investment in the period of 2023 – 2045; improve the efficiency of investment in the field of logistics and provide dedicated and detailed guidance on investment registration procedures, business registration for logistics enterprises.
- Logistics enterprises: Upgrade facilities, warehouses, factories and apply new technologies to logistics business activities; promote the training of professional and highly qualified human resources in the field of logistics,…
These policies are important policies, contributing to encouraging domestic and foreign investment in the logistics sector in Binh Duong province in particular and in Vietnam in general.
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