PRIME MINISTER SOCIALIST REPUBLIC OF VIETNAM

-------- Independence – Freedom – Happiness

------------
No.: 200/QD-TTg Hanoi, February 14, 2017

DECISION

APPROVAL FOR THE ACTION PLAN FOR IMPROVEMENT OF COMPETITIVENESS

AND DEVELOPMENT OF VIETNAM’S LOGISTICS SERVICES BY 2025

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Law on Commerce dated June 14, 2005;

Pursuant to Decision No. 2471/QD-TTg dated December 28, 2011 by the Prime Minister giving
approval for the Strategy for goods import and export during the 2011 – 2020 period with a
vision up to 2030;

Pursuant to Decision No. 175/QD-TTg dated January 27, 2011 by the Prime Minister giving
approval for the Overall Strategy on development of service sector of Vietnam up to 2020;

At the request of Minister of Industry and Trade,

DECIDES:

Article 1. The action plan for improvement of competitiveness and development of Vietnam’s
logistics services by 2025 (hereinafter referred to as the Action Plan) is approved herein with the
following main contents:

I. VIEWPOINT

1. Logistics is an important service sector in the overall structure of the national economy, plays
the role in support, connection and improvement of the social – economic development of the
whole country as well as that in each locality, and takes part in the improvement of the economic
competitiveness.

2. Develop the logistics service sector into a high value-added service sector and associate it with
the national development of goods production, import, export and commercial activities, and the
development of information technology and transport infrastructure.
3. Develop the logistics service market in a healthy way to create fair chance to enterprises in all
economic sectors and encourage both domestic and foreign investments in conformity with the
law of Vietnam and international treaties to which Vietnam is a signatory.

4. Make the best use of the strategic geographic position and improve connections to develop
Vietnam into an important regional logistics hub.

5. Attach a special importance to the increase of the competitiveness of logistics service

providers. Logistics service providers shall be developed in all terms of quantity, scale and
qualification of personnel with the aim of holding a high level of competitiveness in both
domestic and foreign markets.

6. The Government shall take the role in support and creation of convenient environment for
improving the competitiveness and development of Vietnam’s logistics service sector.

II. OBJECTIVES

1. By 2025, the proportion of the logistics sector in GDP will reach 8-10%, the service growth
will reach 15-20%, the proportion of outsourcing logistics services will reach 50-60% , logistics
costs will reduce equivalently to 16-20% of GDP, ranking 50 or above across the world
according to the Logistics performance index (LPI).

2. The country will focus on attracting investment in logistics infrastructure development,

constructing regional and international logistics service centers, improving the efficiency of the
connection between Vietnam and other countries. Vietnam shall become a regional logistics hub.

3. Leading logistics service enterprises which are competitive enough in the domestic and
international market will be formed, and existing logistics service enterprises will be supported
to become modern and professional motto.

4. Production and trading enterprises will efficiently manage the supply chain, save materials and
reduce production costs and time of goods movement.

5. Advanced technologies will be applied to logistics sector and professional personnel will be
trained with high qualifications in logistics with the aim of facilitating the commercial
development and restructuring production and trading enterprises.

6. The Government’s management mechanism, including policies on support and development

of logistics services, sector regulatory laws and management structures, will be revised in
conformity with the development of Vietnam's logistics sector in the process of international
economic integration.

III. MAIN GROUPS OF TASKS IN THE ACTION PLAN

1. Improving policies and laws on logistics services.

2. Completing the logistics infrastructure.

3. Strengthening business capacity and service quality.

4. Developing the market of logistics services.

5. Training, raising awareness and quality of human resources.

6. Other tasks.

Tasks of the action plan for improvement of competitiveness and development of Vietnam’s
logistics sector by 2025 are prescribed in the Appendix enclosed herewith.

IV. FUNDING OF THE ACTION PLAN

1. Sources of funding for implementing the Action Plan include funds from state budget,
enterprise’s capital, loans provided by credit institutions, international grants and other legal
sources of funding as regulated by laws.

2. The state budget funds shall be allocated according to the current division of state budget
levels. To be specific:

a) Funds for projects/ tasks covered by Ministries, Ministerial-level agencies or Affiliates of the
Government shall be derived from the Central-government state budget and included in the
annual estimate of expenditures covered by state funding of each agency.

b) Funds for projects/ tasks covered by the People’s Committees of provinces or central-
affiliated cities shall be derived from the provincial-government state budget and included in the
annual state budget of each provincial government.

V. IMPLEMENTATION ORGANIZATION

1. Ministry of Industry and Trade:

a) Take charge and coordinate with Ministries/ regulatory bodies and local governments in
implementing this Action Plan; propose policies for encouraging social involvements in
performing tasks in the Action Plan.

b) Expedite and supervise the implementation of the Action Plan.

c) Consolidate and evaluate annual results of the Action Plan, and make modification to the
Action Plan, where necessary; submit reports to the Prime Minister.

2. Ministries/ regulatory bodies shall, based on this Action Plan, formulate, appraise, give
approval and allocate state budget, and mobilize other legitimate sources of funding in
accordance with management levels and prevailing laws to perform tasks mentioned in Section
III and the Appendix enclosed herewith.

3. Each People’s Committee of province/ central-affiliated city shall, based on the actual
development of logistics sector in such province, formulate the Plan for development of logistics
services in such province, consider approval and allocate state budget to implement such plan in
accordance with current regulations.

Article 2. Implementation

1. This Decision shall take effect as from the date on which it is signed.

2. Ministers, Heads of Ministerial-level agencies, Heads of the Government's affiliates,

Chairpersons of the People's Committees of provinces/ central-affiliated cities, logistics services
associations and/or enterprises, and relevant entities shall implement this Decision./.

PP PRIME MINISTER
DEPUTY PRIME MINISTER

Trinh Dinh Dung

SPECIFIC TASKS FOR IMPROVING THE COMPETITIVENESS AND DEVELOPING

VIETNAM’S LOGISTICS SECTOR BY 2025

(Enclosed to Decision No. 200/QD-TTg dated February 14, 2017 by the Prime Minister giving
approval for the action plan for improvement of competitiveness and development of Vietnam’s
logistics services by 2025)

In-charge Implementation/
No. Tasks Goals
agency (*) completion time
I Improving policies and laws on logistics services
1. Supplement and Establish legal grounds to Ministry of 2020
amend contents about facilitate logistics activities Industry and
logistics services in Trade and
the Law on Commerce Ministry of
Justice
2. Promulgate a Decree Comprehensively regulate Ministry of 2017
 to amend or replace logistics services and internalize Industry and
the Decree No. international commitments on Trade and
140/2007/ND-CP logistics Ministry of
Justice
3. Review legislative Propose amendments or Ministry of 2018
documents and promulgation of new policies/ Industry and
policies on logistics laws on logistics, multimodal Trade, Ministry
transport and cross-border of Transport,
transport Ministry of
Planning and
Investment and
Ministry of
Justice
4. Review and amend Apply road-user charges and Ministry of 2017
policies on taxes, fees seaport services fees so as to Transport and
and prices of logistics- facilitate logistics activities Ministry of
related services Finance
5. Review international Propose measures to avoid Ministry of 2017
commitments on conflicts between commitments Industry and
logistics in WTO and on logistics at international Trade, Ministry
ASEAN, and Free- forums, and avoid conflicts of Planning and
trade Agreements between international Investment and
(FTAs) commitments on logistics and Ministry of
domestic laws Justice
6. Formulate plan for Commitments on logistics in Ministry of 2018
negotiation on future FTAs should be in Industry and
commitments on harmony with existing Trade, Vietnam
logistics in future commitments and domestic laws; Logistics
FTAs promote strengths of Vietnam's Association, and
logistics service providers with Vietnam
the aim of developing Vietnam Chamber of
into a regional logistics hub. Commerce and
Industry
7. Disseminate Help enterprises have a good Ministry of 2017 - 2025
Vietnam’s grasp of and properly apply Industry and
international international commitments on Trade, Vietnam
commitments on logistics Logistics
logistics services Association, and
Vietnam
Chamber of
Commerce and
Industry
8. Enhance trade Reform customs procedures, Ministry of 2017 - 2025
 facilitation reduce and simplify sector Finance, relevant
inspection procedures, standardize Ministries and
documents and develop WTO Vietnam
Trade Facilitation Agreement Chamber of
Commerce and
Industry
9. Enhance the Apply the national single-window Ministry of 2020
application of system to the conducting of all Finance, relevant
Vietnam’s single- procedures for imported, exported Ministries and
window system and transit goods, outcoming, Vietnam
incoming and transit people and Chamber of
means of transport Commerce and
Industry
10. Establish the Trade Assist enterprises in searching Ministry of 2017
Information Portal information relating tax rates and Finance and
import/export procedures for each Ministry of
type of commodity Industry and
Trade
11. Do research on and Formulate appropriate policies to People’s 2020
formulate policies to support the development of Committees of
support the logistics services in provinces in provinces/
development of an effective way in conformity central-affiliated
logistics services of with social – economic cities
provinces characteristics of each province
II Completing the logistics infrastructure
12. Review plans to Ensure the conformity of plans for Ministry of 2018
ensure the transportation with strategies/ Transport,
synchronization of plans for industrial production, Ministry of
transport agricultural production, import & Industry and
infrastructure, import, and provincial strategies Trade, and
transport services, and for social – economic Ministry of
the development development, and their connection Finance
objectives of logistics with plans for logistics centers,
sector dry ports and bonded warehouse
in a harmonious whole
13. Review and amend Ensure the conformity of plans for People’s 2018
provincial plans/ development of logistics services Committees of
structure of and infrastructure with social – provinces/
production in economic development plans of central-affiliated
association with the each province cities
development of
logistics services and
infrastructure
14. Completing policies Promulgate appropriate policies to Ministry of 2019
and speed up the attract both domestic and foreign Planning and
attraction of investments and encourage all Investment,
investments in economic sectors to invest in Ministry of
logistics infrastructure logistics sector and logistics Finance, and
infrastructure development Vietnam
Chamber of
Commerce and
Industry
15. Promote the Improve the connection between Ministry of 2017 - 2025
cooperation with the national logistics Transport, and
foreign partners with infrastructure and those of Vietnam
the aim of improving ASEAN member states, countries Logistics
the connection of in the Northeast Asia and other Association
logistics infrastructure regions in the world for the
systems purpose of making best use of
multimodal transport, cross-
border transport and transit
16. Invest in logistics Build traffic works, warehouses, Ministry of 2017 - 2025
infrastructure and logistics centers on routes/ Transport,
expansion with the corridors connecting Vietnam and Ministry of
aim of connecting Laos, Cambodia, Thailand and Industry and
Vietnam’s ports with South China Trade, and
those of neighboring People’s
countries Committees of
relevant
provinces/cities
17. Speed up the Increase the quantity of goods Ministry of 2017 - 2025
development of transported under the forms of Transport, and
multimodal transport multimodal transport, cross- Ministry of
and cross-border border transport, and transit Industry and
transport, especially Trade
in-transit goods
transport
18. Promote the transport Overcome irrational status in Ministry of 2017 - 2025
restructuring with the transport structure, increase the Transport, and
aim of developing a market share of large-volume relevant
transport market with transport modes and the Associations
an appropriate connection between transport
structure modes, reduce transport costs and
improve quality of transport
services
19. Increase the capacity Increase the volume of goods Ministry of 2017 - 2025
 of marine transported by sea. Amend the Transport
transportation Plan for seaport system in the way
of focusing on development of
regional economic advantages.
Improve the quality of services of
Vietnam’s fleets
20. Develop the transport Increase the volume of goods Ministry of 2017 - 2025
of goods by inland transported by inland waterway. Transport
waterway Build inland waterway ports with
modern equipment, especially
ports in Mekong Delta and Red
River Delta
21. Modernize railway Increase the volume of goods Ministry of 2017 - 2025
system and increase transported by railway. Shorten Transport
the capacity of railway transport period, and increase the
transport of goods reliability and quality of services.
Make a strong connection
between railway system and road,
seaway, airway and inland
waterway systems
22. Increase the capacity Increase the volume of goods Ministry of 2017 - 2025
of transport and transported by air. Build modern Transport
handling of goods by cargo terminals with high cargo
airway handling capacity and high-level
automation
23. Rationalize road Maintain the volume of goods Ministry of 2017 - 2025
transport transported by road in balance Transport
with other transport modes.
Increase the reliability, prevent
traffic congestion and reduce
costs of goods transport by road
24. Develope logistics Optimize the two-way transport of Ministry of 2018
trading floors goods, container transport Transport, and
relevant
Associations
25. Improve logistics Develop transport systems with Ministry of 2019
infrastructure in the aim of following development Industry and
association with e- trends of e-commerce, including Trade, Vietnam
commerce paying special attention to last- E-commerce
mile delivery Association, and
Vietnam
Logistics
Association
26. Focus on calling for Establish type-I logistics centers Ministry of 2021
investment in which perform the role in Transport,
construction of type-I connecting Vietnam and foreign Ministry of
logistics centers in countries Planning and
Hanoi City and Ho Investment, and
Chi Minh City People’s
Committees of
relevant
provinces/cities
27. Focus on calling for Establish type-II logistics centers People’s 2023
investment in which perform the role in Committees of
construction of type-II connection between key economic relevant
logistics centers in regions in Vietnam provinces/cities,
Lang Son, Lao Cai, Ministry of
Hai Phong, Da Nang, Planning and
Quy Nhon and Can Investment, and
Tho Ministry of
Industry and
Trade
28. Develop air logistics Establish air logistics centers with Ministry of 2020
centers with attaching specific areas for handling special Transport, and
a special importance commodities such as dangerous Vietnam
to prolonged logistics goods, high-value goods, high- Logistics
centers outside of tech goods and goods requiring Association
airports to handle special maintenance, etc.
special commodities
29. Mobilize and attach Establish logistics centers in Ministry of 2017 - 2025
investment in foreign countries which play the Transport,
construction of role in collecting and distributing Ministry of
logistics centers with goods from Vietnam to Foreign Affairs,
the purpose of international markets Ministry of
improve Vietnam’s Planning and
import/ export of Investment, and
goods to/from global Vietnam
markets: Logistics
Association
a) - East Asia: China,
Japan and Korea
b) - Europe: Netherlands,
Belgium, Italia and
Russia
c) - America: USA,
Panama, Brazil
d) - South Asia, West
Asia and Africa:
India, United Arab
Emirates (UAE), and
South Africa
III Strengthening business capacity and service quality
30. Encourage and Enterprises in certain sectors Ministry of 2021
instruct enterprises in
apply advanced supply chain Industry and
certain sectors in management models to their Trade, Vietnam
applying advanced production and business activities. Logistics
supply chain Information technology and new Association,
management models: logistics technologies are applied Vietnam
to logistics activities Software and IT
a) - Textile and garment
Services
industry
Association, and
b) - Leather and footwear relevant
industry associations
c) - Timber industry
d) - Agricultural
products – foods
industries
dd) - Mechanical –
manufacturing
industry
e) - Small and medium
enterprises
31. Encourage some Some industrial parks/ export Ministry of 2020
industrial parks and processing zones provide closed Planning and
export processing logistics services to help Investment, and
zones to form enterprises there shorten time and People’s
logistics-based costs of delivery of materials and Committees of
industrial zone model products relevant
provinces/cities
32. Prioritize the Do research and apply new Ministry of 2017 - 2025
allocation of state technologies/ technological Science and
funding to research, advances to the management, Technology, and
transfer and operation and training in supply Vietnam
application of chain systems and logistics Logistics
advanced technologies services Association
to the development of
logistics services;
improve private sector
 involvement in the
development of
logistics services
33. Promote deep Increase the quantity of Vietnam 2017 - 2025
integration between production and trading enterprises Logistics
logistics sector and using logistics services to enhance Association, and
domestic agricultural the efficiency of their business Vietnam
production, industrial activities Chamber of
production, Commerce and
import/export/sale of Industry
goods, and other
service sectors
34. Speed up the Increase the quantity of Vietnam 2017 - 2025
development of enterprises providing integrated Logistics
integrated logistics logistics services with the use of Association, and
services, including modern technologies for relevant
3PL and 4PL logistics improving service quality associations
services
35. Completing policies Logistics service providers, Ministry of 2020
for supporting especially small and medium Planning and
logistics service enterprises, are facilitated in Investment, the
providers accessing to domestic and foreign State Bank of
sources of funding, developing Vietnam,
market, training and accessing to Ministry of
information Industry and
Trade, and
Vietnam
Chamber of
Commerce and
Industry
36. Support the Establish large-scale logistics Vietnam 2022
establishment of enterprises creating orientations Logistics
strong logistics and motives for market Association, and
corporations towards development Vietnam
outward investment Chamber of
and export of logistics Commerce and
services Industry
37. Assist enterprises in Enterprises improve their capacity Vietnam 2017 - 2025
improving their for negotiation, conclusion and Chamber of
capacity for performance of logistics services Commerce and
negotiation, contracts, and resolution of Industry, and
conclusion and logistics disputes Vietnam
performance of Logistics
logistics services Association
 contracts, and
resolution of logistics
disputes
IV Developing the market of logistics services
38. Improve trade Host/ organize international Vietnam 2017 - 2025
promotion in the field logistics seminars, trade fairs and Logistics
of logistics sector exhibitions. Attend international Association, and
logistics trade fairs and Vietnam
exhibitions. Organize research Chamber of
teams working abroad and invite Commerce and
foreign enterprises to Vietnam to Industry
discuss future investment
opportunities and cooperation in
developing logistics services
39. Attract sources of Increase the volume of goods Ministry of 2017 - 2025
goods transported transported from Laos, Cambodia, Industry and
from Laos, Cambodia, Thailand and South China through Trade, Ministry
Thailand and South Vietnam to other countries and of Transport, and
China through vice versa Vietnam
Vietnam to other Logistics
countries and vice Association
versa
40. Give support to Increase the volume of goods at Ministry of 2022
improve operating and the Cai Mep - Thi Vai port Transport, and
marketing efficiency, complex, and develop this Ministry of
and expand sources of complex into a regional center for Industry and
goods for the Cai Mep collection and transit of goods Trade
- Thi Vai port
complex
41. Enhance the Enhance the propagation of the Vietnam 2017 - 2025
development of use of outsourcing logistics Shippers’
outsourcing logistics services to domestic producers, Council, and
services importers, exporters and traders Vietnam
towards specialization and Logistics
appropriate use of workforce in Association
supply chains
42. Orientate change of Change “buy CIF and sell FOB” Vietnam 2017-2025
behavior in term of delivery, improve Shippers’
international trade, awareness of shippers, and Council, and
make a connection provide Vietnam's logistics Vietnam
between shippers and service providers chance to take Logistics
logistics service part in many stages of the supply Association
providers chain with higher and higher
 value added content
43. Promote international Promote the cooperation with Vietnam 2017 - 2025
cooperation in logistics associations and Logistics
logistics enterprises in ASEAN and in the Association
world. Attract lots of foreign
enterprises to Vietnam to run
business or cooperate with
Vietnamese enterprises
V Training, raising awareness and quality of human resources
44. Promote bachelor’s Universities do research and Ministry of 2023
programs in logistics formulate training Education and
programs/textbooks in logistics, Training,
and establish Logistics Ministry of
Departments. Accredit logistics Industry and
training major. Trade, and
Ministry of
Transport
45. Promote vocational Formulate the national Ministry of 2017 - 2025
training programs in occupational standard and Labour, War
logistics qualifications framework in Invalids and
logistics in harmony with ASEAN Social Affairs,
and international qualifications Ministry of
reference frameworks Vocational Industry and
training institutions organize Trade, Ministry
training programs in logistics of Transport, and
Vietnam
Logistics
Association
46. Increase lecturers in Attract lecturers in logistics Ministry of 2017 - 2025
logistics in terms of sector. Establish knowledge Education and
quantity and quality criteria and improve qualifications Training, and
of lecturers in logistics Ministry of
Labour, War
Invalids and
Social Affairs
47. Provide basic training Provide basic training programs in Vietnam 2017 - 2025
programs in logistics logistics to enterprises‘ leaders Logistics
to enterprises‘ leaders and regulatory bodies’ officials to Association, and
and regulatory bodies’ facilitate them in fulfilling their Ministry of
officials duties Industry and
Trade
48. Connect Vietnam’s Cooperate with foreign training Vietnam 2017 - 2025
training institutions/ institutions to organize Logistics
 logistics enterprises appropriate training courses with Association,
with foreign training the aim of improving efficiency of Ministry of
institutions training and drilling logistics Education and
personnel Training, and
Ministry of
Labour, War
Invalids and
Social Affairs
49. Organize scientific & Take advantage of means of mass Vietnam 2023
education programs in media to popularize the role and Logistics
logistics via means of importance of logistics sector as Association, and
mass media well as logistics enterprises Ministry of
Information and
Communications
50. Establish strong Establish several centers which Ministry of 2023
logistics research carry out in-depth research in Science and
centers logistics to do research and grasp Technology, and
new trends and advanced Vietnam
technologies in logistics, promptly Logistics
and efficiently apply research Association
findings
VI Other tasks
51. Strengthen the state Do research on the establishment Ministry of 2018
management of the National Steering Home Affairs,
apparatus in logistics Committee for Logistics, and Ministry of
logistics advisory boards of Industry and
certain Ministries/ regulatory Trade, and
bodies to assist the Government in Ministry of
regulating logistics activities Transport
52. Strengthen and Promote the role of logistics Ministry of 2020
promote the role of associations in order to determine Home Affairs,
logistics associations the visions and orientations for Ministry of
developing and supporting Industry and
logistics service enterprises Trade, and
relevant
associations
53. Promote the role of Expand the scope and attract the Ministry of 2017 - 2025
Vietnam Logistics participation of logistics service Industry and
Forum and establish enterprises and international Trade, Ministry
the mechanism for investors in the Vietnam Logistics of Transport, and
cooperation and Forum. At the same time, Vietnam
regular talks between establish the mechanism for Logistics
regulatory bodies and cooperation and regular talks Association
 logistics service between regulatory bodies and
enterprises logistics service enterprises for
solving difficulties and other
matters
54. Formulate and Formulate standards and Ministry of 2022
supplement standards regulations to standardize Science and
and regulations on logistics operation process Technology,
logistics activities relevant
Ministries/
regulatory
bodies, and
Vietnam
Logistics
Association
55. Develop equipment Manufacture and develop Ministry of 2022
for inspecting, equipment for inspecting, Science and
measuring and testing measuring and testing measuring Technology, and
measuring instruments instruments serving logistics relevant
serving logistics activities with the aim of ensuring associations
activities the accuracy and honesty in goods
forwarding
56. Formulate statistical Form a system of statistical Ministry of 2019
indicators and collect indicators and collect logistics Planning and
logistics statistical statistical figures. Investment,
figures. Ministry of
Industry and
Trade, And
Ministry of
Transport
57. Promulgate business Promulgate business registration Ministry of 2018
registration codes for codes for logistics services Planning and
logistics services Investment
58. Establish a set of Form a set of performance Vietnam 2018
logistics performance indicators to evaluate the Logistics
indicators performance of logistics Association, and
operations in conformity with Ministry of
international standards Industry and
Trade
59. Rank and evaluate the Do research, rank and evaluate the Vietnam 2018 - 2025
competitiveness of competitiveness of logistics sector Logistics
logistics sector and and of logistics service providers Association, and
that of logistics Ministry of
service providers Industry and
 Trade
60. Prepare Vietnam Prepare annual report which Ministry of 2017 - 2025
Logistics Sector includes general assessment of Industry and
Report logistics sector, characteristics Trade, and
and developments during the year, Vietnam
and suggested solutions for the Logistics
following year Association
(*) Note: The agency whose name appears first shall be in charge of the task, the others are
cooperating agencies.