Compendium of Best Practices and Benefits of National Logistics Associations in Selected APEC Economies First Workshop, Oakes on Collins Melbourne, 5-7 April 2011 Author: Mr. Tran Huy Hien Organization: Vietnam, VIFFAS Vietnam Freight Fowarders Association Compendium of Best Practices and Benefits of National Logistics Associations Purpose of Presentation • Part 1: Structure of VIFFAS. • Part 2: Existing of another Associations related to Logistics. • Part 3: Recommendations. Melbourne Workshop, 5-6 April 2011 No. 2 Compendium of Best Practices and Benefits of National Logistics Associations Structure of VIFFAS. • Established in 18/11/1993. • Current number of members: 140 – Ordinary members: 124 Companies. – Associate members 16 Companies. • As a member of FIATA since 1996. • As a national member of AFFA since 1999. • As observer of GMS BF 2008. • Office: Room 804, 8th Floor, 171 Vo Thi Sau Street, District 3, Ho Chi Minh City, Vietnam. – Website: www.vla.info.vn – Email: viffas-hcm@hcm.fpt.vn Melbourne Workshop, 5-6 April 2011 No. 3 Compendium of Best Practices and Benefits of National Logistics Associations Structure of VIFFAS. The term: • 1st term: 1994-1997 • 2nd term: 1997-2000 • 3rd term: 2000-2003 • 4th term: 2003-2007 • 5th term: 2007-2010 • 6th term: 2011-2013 07 members. 18 members. 41 members. 60 members. 140 members. 160 members. 7 18 41 60 Melbourne Workshop, 5-6 April 2011 140 160 No. 4 Compendium of Best Practices and Benefits of National Logistics Associations Structure of VIFFAS. Current organizational chart: Melbourne Workshop, 5-6 April 2011 No. 5 Compendium of Best Practices and Benefits of National Logistics Associations Structure of VIFFAS. The achieved results: • Connects 140 members of over 1000 companies totally in the industry (mostly in warehousing, freight forwarding, handling, logistics), the representative level is about 50% capacity in capital/personnel... • Publishes information on the specialized magazine through Vietnam Logistics Review, workshops and seminars. • Propagates and gathers opinions on the policies and industrial laws. This is the base of all members and important suggestion channel to the State. Melbourne Workshop, 5-6 April 2011 No. 6 Compendium of Best Practices and Benefits of National Logistics Associations Structure of VIFFAS. The achieved results: • International relations: to participate in most regional forums, international participation as a member of industrial organizations such as FIATA, IATA, AFFA, enlist cooperation and integration in international industries. • In 2000 and 2009 successfully organized the annual meeting AFFA in Vietnam. Melbourne Workshop, 5-6 April 2011 No. 7 Compendium of Best Practices and Benefits of National Logistics Associations Structure of VIFFAS. The coordinated management of the State to VIFFAS: • Current relationship with the State management is closely, but many suppliers (MOIT, MT, MOHA, MPI, MOF, GDC, MPT ..) • Logistics is defined only in Commercial law 2005, but inadequate, unclear and doesn't encourage 3PL service providers. • Lack of infrastructure investment and synchronized connection. Administration, customs, taxes ... .. are having many obstacles. • Human resources are not supported from the State that limit the competitiveness. Melbourne Workshop, 5-6 April 2011 No. 8 Compendium of Best Practices and Benefits of National Logistics Associations Structure of VIFFAS. Objectives in the future: • Member development: 20%/year. • Human resource training: 2.000 – 3.000 persons/year (in various forms). • Take part in strategic planning and logistics development to 2020. • Implementation of connecting regionalinternational logistics commitments. • Logistics cost/GDP to 2015 : 22% -2020 : 18%. • LPI rate from around 30-35 to 2020. Melbourne Workshop, 5-6 April 2011 No. 9 Compendium of Best Practices and Benefits of National Logistics Associations Existing of another Associations related to Logistics. • There are currently 5 related logistics Association: VIFFAS, VISABA, VATA, VPA, VNSC. In which VIFFAS has the largest membership and professional activities. • The shipping companies, the forwarders companies and 3PL foreign companies established in Vietnam are not ready to join the Association in Vietnam. VATA Melbourne Workshop, 5-6 April 2011 No. 10 Compendium of Best Practices and Benefits of National Logistics Associations Existing of another Associations related to Logistics. Vietnam Ship Agents and Brokers Association (VISABA) • Established in 05/01/1994. • 45 members. • Objectives: • Links occupation of enterprises permitted to operate as agents and brokers of Vietnam. • Improve business efficiency and protect legitimate economic interests of its members. • Together to create a healthy environment for business competition. Melbourne Workshop, 5-6 April 2011 No. 11 Compendium of Best Practices and Benefits of National Logistics Associations Existing of another Associations related to Logistics. Vietnam Shippers’s Council (VNSC) • Established in 17/11/ 2009. Currently up to 20 members. • Includes enterprises and organizations operating in Vietnam businesses export goods or other fields directly related to import and export goods activities. • Objectives: o Minimize damage for enterprises. o Breaking the monopoly of the transport business. • Activities: o 08/2010: workshop on maritime transport by the Vietnam Maritime Bureau organization. o 09/2010: workshop of the General Department of Customs on the project of Emanifest, building comments. o 09,10/2010: The Association seniors meeting with leaders of the Textile and Apparel Association, Tea Association, agreed to solve the technical problem of inadequate surcharge. o 03/2011: join the Association of Asia Owners. Melbourne Workshop, 5-6 April 2011 No. 12 Compendium of Best Practices and Benefits of National Logistics Associations Existing of another Associations related to Logistics. Vietnam Seaport Association (VPA) • Established in 15/08/1994. • There are 54 members in Vietnam Seaports. • Goods capacity more than 80% through Vietnam. • Objectives: • Protect the rights, build cooperation relationships, support connections and help each other among the members. Help members enhance and improve facilities to meet the requirements of cargo handling. • Training, improve, raise the qualified level for personnel, workers and young professionals in the field operations management, port operation business. Melbourne Workshop, 5-6 April 2011 No. 13 Compendium of Best Practices and Benefits of National Logistics Associations Existing of another Associations related to Logistics. Vietnam Automobile Transportation Association (VATA) • Established in 31/01/2005. • Objectives: • Represent and protect the legitimate interests of the members. • Human resource training. • Reflect, propose and participate with the state management agency in building legal documents. Melbourne Workshop, 5-6 April 2011 VATA No. 14 Compendium of Best Practices and Benefits of National Logistics Associations Recommendations. The reasons supporting the establishment of the United Associations: • Need to gather extensively and expanding more transporters (seaway, road, waterway, airline, railway), the logistics, foreign 3PL... to develop careers in logistics. • Logistics activities should have strong cooperation to avoid current fragmentation. Melbourne Workshop, 5-6 April 201 No. 15 Compendium of Best Practices and Benefits of National Logistics Associations Recommendations. Implementation: 1. Established the National Logistics Committee with a prestigious component to gather and unify in strategic planning and logistics management in Vietnam. 2. Quickly establish the Viet Nam Logistics Federation. The members should be VIFFAS, VISABA, VATA, VPA, VNSC. 3. Need to replace the current regulation of foreign companies taking part in Association as affiliated members. 4. Amending and supplementing the Commercial Law of logistics services in line with current practices. Institutionalize the 3PL services market to develop and enhance the competitiveness of Vietnam's 3PL companies to regional and international integration. Melbourne Workshop, 5-6 April 201 No. 16 Compendium of Best Practices and Benefits of National Logistics Associations Thank you for your attention ! Melbourne Workshop, 5-6 April 201 No. 17