The Europe-Vietnam Free Trade Agreement (EVFTA) will generate new opportunities for Vietnam and the logistics service industry is preparing infrastructure and techniques to take advantage of this. The agreement will also help Vietnam receive foreign direct investment (FDI) capital sources from European countries.
The COVID-19 crisis and also the US China trade disputes is determining manufacturing enterprises to leave China in search of other places for their business, and this is an opportunity for Vietnam to transform itself into a new global production hub.
The EVFTA and also the new shift of production form China gives Vietnam an important foundation to develop logistics services and several Vietnam provinces are starting to develop logistic centers and industrial parks. Such examples include authorities in Ha Tinh who recently approved a plan for logistics center development and Son Duong Port service at Vung Ang Economic Zone. Also, authorities in the southern province of Ba Ria-Vung Tau rolled out a plan to spend 20 trillion VND (850 million USD) from now through 2025 on infrastructure to achieve their goal of comprehensive development.
One of the areas that Vietnam has to work on is the number of high-quality workers which is not enough to meet the actual needs and for which it will need to improve vocational training centers’ quality to adapt to modern production lines that require expertise and skills.
(Source: Vietnam Plus)