Strengthening the capacity of SMEs in the logistics service

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Encouraging enterprises to join Vietnam Logistics Association (VLA), clusters, chains in the service is very necessary. Photo: Internet.

A report by the MPI on strengthening the capacity of Vietnam SMEs in the logistics service shows that Vietnam logistics enterprises are small in size, with 90% of them having registered capital of less than VND10 billion.

The Vietnam logistics enterprises are not competitive enough to develop in the international market, but only in the domestic stages in the logistics chain. Many Vietnam logistics SMEs still operate in a small scale and lack quality human resources, are limited on management and application of information technology.

From the above shortcomings, besides solutions such as further improving the business environment, cutting costs for logistics enterprises, researching the planning for container route, the MPI has introduced solutions to strengthen the capacity of SMEs in the logistics service

The first objective is to strengthen the financial capacity of Vietnam logistics SMEs. According to the MPI, Vietnam logistics SMEs have difficulty in accessing loans from commercial banks due to lack of collateral, limited system of accounting, administration and business plan development.

According to the MPI, Law on supporting SMEs has developed solutions to support SMEs to access loans, including logistics enterprises.

Specifically, for each period, the Government shall decide the policy to support credit institutions to increase outstanding loans for SMEs; encourage credit institutions to provide loans to SMEs based on enterprise credit rating; encourage the establishment of an independent consultancy organization for SME credit rating; support the access to credit through credit guarantee funds for SMEs.

Regarding the solution on strengthening the link among Vietnam logistics SMEs, the MPI said that the Law on supporting SMEs has introduced a key solution group to support enterprises on this issue such as professional training in technology, production techniques; consultancy on standards and product development strategies in linkage clusters, value chains in the service; Providing information on the demand for connection, production and business of SMEs to join the linkage clusters and value chains; Supporting the brand development ...

Regarding the solution on improving the quality of human resources for SMEs in the logistics service, according to the Ministry of Science and Technology, it needs to simultaneously implement the training solutions for the current human resources and promote the supply of logistics human resources in the future.

For example: Organizing professional training on operations and skills for employees working at logistics SMEs. Currently, the MPI is carrying out activities to support human resources training for SMEs. The VLA should coordinate with the Ministry to deploy training activities for enterprises in the service.

Regarding the solution on enhancing IT application in Vietnam logistics SMEs, the MPI emphasized that it needed to promote private investment in innovative and start-up SMEs in the logistics service.

This solution is being implemented by the Government with the initial step which is issuing Decree No. 38/2018 / ND-CP dated 11th March 2018 detailing investment in innovative and start-up enterprises, creative SMEs and guiding the Law on supporting SMEs.

Vietnamese logistics firms remain small, overpowered by foreign services A Ministry of Planning and Investment (MPI) report has found that most domestic logistics firms are small ...

The decree aims to stimulate capital flows of the private sector into innovative and start- up SMEs, including logistics enterprises. In addition, the consideration of tax incentives for innovative and start-up investors should also be promoted in the direction of the Law on supporting SMEs to encourage investors to invest in SMEs based on intellectual property, new technology and new business models.