Promoting the development of logistics cooperation between Vietnam and Thailand

On October 29, speaking at the Conference “Promoting connectivity between Vietnam and Thailand logistics industries” and “Vietnam-Thailand Business Connection Program” in Bangkok, Thailand, Vietnamese Ambassador to Thailand Pham Viet Hung emphasized: “Thailand is a country with a lot of experience in developing the logistics service industry in the region. There is still a lot of room for connectivity between Thai and Vietnamese logistics service industries, from investing in warehouse infrastructure, factories, ports, etc. to applying modern technology, machinery and equipment; joint ventures between businesses of the two countries”.

Vietnam and Thailand discuss solutions to enhance cooperation in the field of logistics.

Ambassador Pham Viet Hung assessed that Vietnam and Thailand have close geographical locations, so connecting businesses of the two countries, connecting road and waterway infrastructure, continuing to develop the East-West Economic Corridor and the Southern Economic Corridor, and opening more air routes have and will contribute significantly to the economic and trade relations between Vietnam and Thailand. With the dynamic economies and strategic locations of both countries in the region, the Vietnam-Thailand partnership has great potential to develop further in the coming time.

Vietnamese Ambassador to Thailand Pham Viet Hung assessed that the potential for cooperation between Vietnam and Thailand still has great room.

In her speech, Associate Professor, Dr. Trinh Thi Thu Huong, Vice President of VALOMA, emphasized that although Vietnam and Thailand have many similarities in terms of economy and trade, Vietnamese consumers and businesses highly appreciate Thai goods, including quality and service. Therefore, VALOMA hopes a lot on activities such as organizing conferences to learn and connect logistics trade between businesses and organizations to promote practical cooperation between Vietnam and Thailand in the coming time.

Associate Professor, Dr. Trinh Thi Thu Huong, Vice President of VALOMA.

Impressed and admiring the growth and development rate in Vietnam's logistics sector, Mr. Vathit Chokwatana, Vice President of the Federation of Thai Industries (FTI), said that Thailand and Vietnam have similar geographical characteristics in logistics. According to the Emerging Market Logistics Index Report 2023 by the world's leading logistics service provider Agility, Vietnam's logistics industry is developing rapidly, ranking 10th out of 50 emerging logistics markets in the world, with an average annual growth rate of 14-16%, reaching 40-42 billion USD per year.

Mr. Kich Aungvitulsatit, Chairman of the ASEAN Business Promotion Committee of FTI, commented at the conference that the logistics business sector is an important mechanism for trade and investment, an intermediary supply chain between buyers and sellers. In the logistics business, there are many different industries and these industries have differences in knowledge and experience, so training and developing human resources potential in this issue is very important. Therefore, Mr. Kich Aungvitulsatit highly appreciated the organization of conference activities and the promotion of logistics cooperation between associations and companies between the two countries.

Vietnamese representatives attended the event.

On the afternoon of October 29, Vietnamese and Thai enterprises met to learn about the Vietnamese Government 's logistics service development strategy and policies, and about cooperation and business opportunities in Vietnam. A total of 169 1-1 Business Matching meetings between Vietnamese and Thai enterprises (1-1 Business Matching) of 29 Vietnamese enterprises and 32 Thai enterprises in the fields of warehousing, transportation, shipbuilding, logistics technology solutions, labels and packaging, garments, petroleum, logistics real estate, etc. were held to connect trade, learn about partners and cooperation, investment and business opportunities. As a result, 39 business opportunities were opened and 3 Memorandums of Understanding were established between the two sides.

On the sidelines of the conference, in an interview with Nhan Dan Newspaper's correspondent in Thailand, Mr. Vathit Chokwatana, Vice President of FTI, further affirmed that to increase the efficiency of logistics connections between Vietnam and Thailand, it is necessary to connect transportation routes between the two countries because it will reduce costs due to the limitation of not having to unload and transfer goods as well as save transportation time.

Mr. Vathit Chokwatana, Vice President of FTI.

Meanwhile, Mr. Kich Aungvitulsatit, Chairman of the ASEAN Business Promotion Committee of FTI, affirmed: Currently, Thailand, the second largest investor in ASEAN in Vietnam, is always looking for cooperation opportunities with Vietnam because we have been long-term partners. Vietnam has a long coastline on the Pacific coast. Thailand also has a coastline on the Pacific coast, but it is shorter, but Thailand has an exit to the Indian Ocean. If Thailand wants to travel more through the Pacific, it should cooperate with Vietnam so that the two countries can develop strongly together.

Sharing with the press, Mr. Bui Huu Nghia, Human Resources Director of Vietnam's U&I Logistics Company, assessed that the potential and opportunities for cooperation between Vietnam and Thailand are still great because some technologies and logistics solutions of the two countries can be connected together such as transporting by gas-powered container trucks and electric trucks to help reduce greenhouse gas emissions according to Vietnam's goals.

Many Thai businesses expressed interest in promoting cooperation with Vietnam.

Over the years, the Vietnam-Thailand Enhanced Strategic Partnership has grown in depth and substance. Thailand is Vietnam’s largest trading partner and second largest investor (total registered capital of nearly 14 billion USD). Bilateral trade turnover increased from 10.4 billion USD in 2013 to nearly 19 billion USD in 2023 and is aiming to bring bilateral trade turnover to 25 billion USD in a balanced direction.

In the field of logistics, Vietnam and Thailand have great potential for cooperation thanks to their strategic geographical locations in the ASEAN region. By promoting the Regional Comprehensive Economic Partnership (RCEP) and connecting economic corridors such as the EEC (Thailand) and the East-West Economic Corridor (EWEC), the two countries can work together to optimize the supply chain and promote cross-border trade. Vietnam currently has over 40,000 enterprises in the fields of transportation, warehousing, delivery, and delivery.

Vietnamese and Thai businesses met at the event.

Vietnam's logistics performance index ranks 43rd out of 154 countries and territories globally, 5th in the ASEAN region, after Singapore, Thailand, Malaysia and the same rank as the Philippines. Vietnam is also among the top 10 emerging logistics markets and ranks 4th in the International Logistics Opportunity Index, however, most Vietnamese logistics enterprises are small and medium-sized enterprises, providing services that do not have high added value.

The conference “Promoting connectivity between Vietnam and Thailand logistics industry” and “Vietnam-Thailand Business Connection Program” on October 29 in Bangkok were organized by VALOMA in coordination with FTI with the support of the Vietnamese Embassy in Thailand, the Vietnam Trade Counselor in Thailand and relevant agencies of Vietnam and Thailand.

VALOMA Logistics Trade Promotion Delegation Visits Laem Chabang Port.

During the period from October 27 to November 2, the VALOMA Logistics trade promotion delegation also had many important activities such as visiting the Vietnamese Embassy in Thailand, Thammasat University, working with the Thai International Freight Forwarders Association (TIFFA), surveying and visiting Thai seaports, free trade zones at airports, working with Thai logistics service providers such as Hazchem Logistics Management Co., Ltd, TIFFA ICD Co., Ltd, Fukuyama Transporting Thailand Co., Ltd and many Thai logistics enterprises.

Source: https://nhandan.vn/thuc-day-phat-trien-hop-tac-logistics-viet-nam-voi-thai-lan-post839300.html