HA NOI — A co-operation agreement on setting up policy dialogues related to the logistics sector was signed between Viet Nam and Japan on Monday.
Present at the ceremony were Deputy Minister of Industry and Trade Ho Thi Kim Thoa and Japan's Deputy Minister of Economy, Trade and Industry Tadahiro Matsushita.
Under the agreement, both sides plan to exchange information, solutions and policies related to technical logistics standards, assistance and technology.
Issues related to the support of logistics enterprises, delegation exchanges and the sharing of mutual experiences will also be brought forward.
According to a Japan External Trade Organisation (JETRO) survey, high costs and prolonged transportation times were among some of the main logistical shortcomings in ASEAN, including Viet Nam.
Transportation and customs clearance regulations contributed 30 per cent to the cost of logistical services while tardy administration procedures contributed between 30 and 40 per cent.
JETRO found that a shortage of skilled personnel was one of Viet Nam's largest problems.
In addition, services have remained underdeveloped due to poor infrastructure, a shortage of deep seaports and international entrepots.
Road and railway systems have additionally not been successfully linked with seaports, industrial zones and economics zones.
Meanwhile, Viet Nam is said to possess large potential for logistical services with export value expected to reach US$200 billion in the next 10 years.
The leader of the Industry and Trade Ministry said that the agreement would help open opportunities for enterprises of both countries to co-operate and benefit while helping consumers access high-quality goods.
Last year, bilateral trade between Viet Nam and Japan reached $16 billion, representing an increase of 24 per cent compared to the corresponding period of the previous year. — VNS