ADDRESS BY THE PRESIDENT OF
THE VIETNAM FREIGHT FORWARDERS ASSOCIATION (VIFFAS)
AT THE VPA ANNUAL MEETING 2008
Distinguished Delegates,
Firstly, on behalf of the Executive Committee of Vietnam Freight Forwarders Association (VIFFAS), I express my sincere thanks to VPA for inviting me to attend and make a speech at VPA Annual Meeting 2008
On this occasion, I would like to represent for 105 VIFFAS members to express sincere thanks to VPA and VPA members – Vietnam major seaports for past time cooperation and support in the supplying and improving logistics and forwarding services.
In this vital meeting, I would like to have some opinions as follow:
1. VPA is an Association of 48 members of Vietnam important seaports, including leading joint-venture seaports. In recent years, VPA has strongly developed, gained power and greatly contributed to the growth of Vietnam sea transportation in general and to Vietnam seaport system improvement in particular. VPA has acquired lots of outcomes in global economic integration and cooperation of transport industry. We VIFFAS would like to congratulate VPA on those outcomes and wish to have a further cooperation with VPA in the time coming.
2. When logistic service is presently expanded with supply chain management, port plays a very important role in a part of this chain which is the cargo transportation and providing information to meet the customer’s high demand in competitive price and time.
In order to strengthen import/export transaction, satisfy the import need, and grow Vietnamese economy in the process of national industrialization and modernization, we do hope that VPA members will positively support the freight forwarding as well as other logistics services.
It is, firstly, to upgrade enough seaport infrastructure to meet the increasing demand in cargo exportation (with the average of annual increase up to over 20%) and importation (with the average increase of about 40%). In addition to the new construction of modern ports in such places as Cai Mep, Thi Vai, Cat Lai, Dinh Vu, Van Phong, etc. together with the development of ICD (Inland Container Depot), ports need to be more equipped with modern cargo handling equipment, broaden the yard and warehouse to speed up releasing ships handling and clearing out of the port area. It is required to coordinate more closely the port construction with the development of supportive areas at port such as pathway in and out the port, place of gathering cargo, and the place of procedure.
In the last early months of 2008, a big volume of imported/exported goods congested at ports in Ho Chi Minh City has caused problems for not only ports but also for forwarding and transportation services, which directly affected import and export activities. It is not only for import and export enterprises and because of insufficient warehouses, port administration needs to be improved, especially warehouse storage with the fine of only USD 50 for 20 foot container and USD 100 for 40 foot container are so low that the shipping companies will appropriately overuse port’s warehouses for themselves.
We find that, port can combine with capable freight and forwarding companies to invest in expanding the warehouses, collectively control and releasse cargoes at ports.
3. Strengthening the cooperation between VPA and VIFFAS. Good combination will play an important role in developing logistic services next time, helping Vietnam to become logistics service center regionally and internationally.
a. Enhancing the cooperation in information exchange related to cargo handling at ports, freight procedures, port service charges, estimated time of ship arrival and departure, maneuverability of transportation means to avoid traffic congestion at ports, the data of freight forwarder and cargo, port information and forwarding businesses.
VPA and VIFFAS as well as big members of both Associations now have their own websites so it is very easy to connect and exchange the above information. VIFFAS recommend that VPA and VIFFAS meet together to talk over in detail this cooperation after VPA meeting.
b- Supporting mutually in order to assure the sea port and cargo security. In reality now, there is a fact that cargo even moved by containers is still stolen during transporting to ports (exported goods), or from port to the place of delivery (imported goods). This is insolvable problem which the forwarders have not found the solution to overcome. If there is a close cooperation between ports and forwarders, it will be limited to the minimum level.
Moreover, it is necessary to have the cooperation among forwarders to comply seaport security standard as ISPS Code, In the near future, some ports will carry out container monitoring and there is a need of good cooperation between ports, and forwarders and the authorities to join in American CTPAT program.
Cooperating in training logistics services. This is an urgent inquiry for members of both Associations to improve their knowledge in seaport operations and logistics service provision relating to port performance.
4. The enterprises, who are VIFFAS members, always hope ports to consider lowering service charges and continue to improve procedures relating to the transportation and forwarding, facilitate the good delivery at ports so that forwarding service suppliers can reduce the price and further their competitive capacity.
5. On this occasion of VPA meeting, we would like to inform that VIFFAS has officially asked the government for renaming as Vietnam Logistics Association to satisfy the demand of logistics development in the country. With new name and new operations of Vietnam Logistics Association, we do believe to have close and effective cooperation with Vietnam Seaport Association.
Finally, I wish great success to VPA Annual Meeting 2008 and good health to all delegates. We wish to have good cooperation between our two Associations.
Thank you.
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