Compendium of Best Practices and Benefits of National Logistics Associations

Compendium of Best Practices and Benefits of National Logistics Associations in Selected APEC Economies

Second Workshop, Shangri-La Hotel Bangkok, 27 February – Friday 2 March 2012

Author: LE DUY HIEP (Mr.)Economy: Vietnam

Compendium of Best Practices and Benefits of National Logistics Associations

Purpose of Presentation

Objective: To provide a project update on To provide a project update on Vietnam Federation of Logistics Associations Vietnam Federation of Logistics Associations

(VFLA)(VFLA)Since The Workshop One Since The Workshop One (Apr.2011)

Bangkok Workshop,27 February – Friday 2 March 2012 No. 2


Background: VietnamVietnam Freight Forwarders Association (VIFFAS) objective is to link, support and help its members to develop their careers, improve their performance and protect their legitimate interests.

VIFFAS offers the following services to its members:• Connects 140 members in over 1000 companies • Publishes information in the Vietnam Logistics Review• Organises workshops and seminars• Gathers and disseminates opinions on relevant policies and industrial

laws• Participates in regional forums• Organises the annual AFFA meeting in Vietnam

There are currently five related logistics associations; VIFFAS has the largest membership and the most professional activities. The goal is to quickly establish the Viet Nam Logistics Federation.Bangkok Workshop,27 February – Friday 2 March 2012 No. 3


Outcomes from Workshop One

Objectives: • becoming the only voice of Vietnam logistics industry and establishing the Vietnam Federation of Logistics Associations (VFLA)• keeping government informed of the logistics and supply chain issues in Vietnam • creating a forum for logistics and supply chain management.• offering education opportunities to the industry‘s human resources as well as potential undergraduate students

Issues: • Application for Vietnam Logistics Association’s name change already submitted to government. No confirmation yet to receive.











VIFFAS Website



Projected plan:

• Developing a concrete action plan that documents how to transform into a single voice for Vietnam’s Transport and Logistics industry and how to get approval for the association’s name change.

• Hold meetings with relevant government agencies. Contact the Ministry of Internal Affairs to discuss the options, namely:

+ Option One: Change the name+ Option Two: Continue with the same name and work towards becoming a single voice for Vietnam’s Transport and Logistics industry+ Option Three: Establish a federation consisting of different associations

Outcomes from Workshop One



Project Update – Outcomes 1. Strategic goal unchanged: setting up Vietnam Federation of Logistics Associations (VFLA) on the core of current Vietnam Logistics Service Enterprises Association (*)(VLA) and the unification of the related transport industry associations.2.2. Holding various dialogs with Government Cabinet and related ministries in logistics industry to promote to establish the Vietnam National Logistics Committee (VNLC) as inter-ministerial level at government side..3. Pushing association’s name change approval by Ministry of Interior (no later than March 2012). Convincing all logistics-related associations leaders to the establishment of Federation.4.4. Strong support needed from APEC forum, especially in May 2012 conference in Hanoi, on cognitive preparation from government and related associations to accelerate establishment of National Logistics Federation.

(*) new named after the Apr.2012



Strategy

- Enhance professional development of modern logistics as well as integration to global logistics services, thereby contributing effectively to Vietnam’s economic development am- Integrating Vietnam logistics service providers under single Integrating Vietnam logistics service providers under single federation to create the role of the pivot national industryfederation to create the role of the pivot national industry- Along with state management on transportation and logistics, building up logistics strategy phase in 2020, as well as playing a key role in development of Vietnam's economy- Linking to the logistics sector in the AEC, GMS, APEC and to Linking to the logistics sector in the AEC, GMS, APEC and to the worldthe world.



Lessons Learned

-Consensus and recognition from government agencies as well as other associations involved

-VIFFAS’s firm status and leading role is a MUST in the unification of other logistics-involved associations

-SMEs’ roadmap and process to convince the industry associations, as well as the state, on the unified logistics

- Support and assistance from regional and international organizations



Challenges- Absence of coordination and synchronization from various ministries in charge of logistics and transport industries- Awareness and implementation of logistics and SCM on both state management and the businesses remain inadequate - Shortage of Professionals in logistics industry - Logistics industry associations not willing to join the federation because of own interests

Benefits- Strong voice of Logistics sector and combined strength of the industry- Effectiveness and efficiency of logistics operations through the integration- Enhancement of the federation/association in coordination with the State



Success Stories

- Agreed on name change and awaiting formal decision from Ministry of Interior.- Emphasis on promotion of, and close connection with, members, increasing membership to 179- New Executive Committee effective and more dynamic- Set-up of Logistics Institute (VLI) and Vietnam Logistics Review (VLR) serving as training and information centers for members and others in logistics industry- Organized 2 seminars in Apr and Dec 2011 and various coffee- talks dealing with policy issues as well as operational improvement for members- Working closely with Customs for smooth coordination (MOU signed)



Next Steps - Developing action plan taking into account of roadmap- Preparing APEC conference May 2012 in Hanoi- Working closely with Ministry of Transport and relevant authorities on this project to generate sufficient support- Renaming of this Association is temporary, ultimate goal is VFLA- Developing strong membership in near future; Promoting professional development, supporting members through information update, training, seminar, coffee-talk …- Holding meetings with relevant industry associations to reach agreements- Strengthening relations with regional & international professional organizations to seek cooperation and support



Conclusion

- Vietnam logistics industry currently receiving moderate LPI

- Logistics and SCM substantially increasing role in the development of Vietnam economy

- In spite of challenges ahead, VFLA establishment project will be materialized with internal and international supports


Documents

Compendium of Best Practices and Benefits of National Logistics Associations