(Chinhphu.vn) - The Director of Hubs and Global Partnerships of the World Logistics Passport (WLP) initiative has assessed that due to its strategic position as a regional hub for transit and production, Vietnam will become a vital logistics and trade hub (referred to as Hub) within the WLP network.
The World Logistics Passport (WLP) program has recently collaborated with the Ministry of Industry and Trade and the Embassy of the United Arab Emirates (UAE) to organize a conference discussing the WLP initiative and the potential for enhancing cooperation between Vietnam and the UAE in the logistics sector. This program coincides with the 30th anniversary of diplomatic relations between Vietnam and the UAE.
The World Logistics Passport (WLP) is a global initiative led by Dubai designed to facilitate global trade flows. WLP has added Vietnam to the list of regional logistics and trade hubs (referred to as Hubs).
In partnership with five Vietnamese enterprises, WLP has signed specific partnership agreements for the program's implementation in Vietnam, including Vietnam Airlines Corporation (Vietnam Airlines), Railway Transport and Trading Company (RATRACO) - Vietnam Railways, T&Y Superport Vinh Phuc Joint Stock Company, Vietnam Shippers' Council (VNSC), and Vietnam Coffee and Cocoa Association (Vicofa).
WLP collaborates with partners from 29 Hubs within this network, customizing benefits for members to reduce costs, save time, and provide support to eliminate trade barriers, unlock multi-modal trade, facilitate holistic transactional journeys for traders, and enable access to global markets.
Mr. Abdulla Alsuwaidi, Director of Hubs and Global Partnerships at WLP, evaluates that due to its strategic position as a regional hub for transit and production, Vietnam will become an important Hub within the WLP network.
"WLP is a multilateral trade network aimed at facilitating cross-border trade. The benefits are adjusted to help traders save costs, time, and open up opportunities to access new markets. WLP strategically selects partners along the supply chain and logistics journey to eliminate trade barriers and enhance diversified imports and exports between Hubs," Mr. Abdulla Alsuwaidi stated.
Dr. Bader Abdulla Al Matrooshi, UAE Ambassador to Vietnam, noted that the UAE is Vietnam's largest trading partner in the Middle East region with a two-way trade turnover of $8 billion in 2022. With more initiatives like WLP, the UAE believes that trade turnover will continue to increase by enhancing economic and trade benefits for signing partners and attracting more participants.
Regarding the Ministry of Industry and Trade's perspective, Mr. Tran Thanh Hai, Deputy Director of the Import and Export Department, emphasized that creating favorable conditions for trade and enhancing national competitiveness are essential tasks not only for the trade sector but also for the national logistics ecosystem. The key point of the WLP is the operation according to the Hub model of each member country, including Vietnam. The successful lesson from the UAE is that strong and determined participation and innovation by the Customs authorities are crucial.
Benefits of Participating in WLP
In a discussion with the Government Electronic Newspaper, Mr. Tran Thanh Hai added: Since May 2021, Vietnam has become one of the 29 members (Hubs) of the World Logistics Passport (WLP) through a cooperation memorandum between the Vietnam Logistics Business Association (VLA) and WLP, supported by the Ministry of Industry and Trade and the Vietnamese Embassy in the UAE. This has paved the way for Vietnam's logistics ecosystem to join the global logistics ecosystem and the network of WLP members.
Currently, 22 Vietnamese logistics service providers have registered to become members of the WLP program.
As a result, products and goods of Vietnamese enterprises, when granted the WLP by the UAE, will receive facilitation and support in customs clearance, aviation tax exemption, reduced inspection time, quick and free transportation onto vehicles, reduced warehousing time by up to 48 hours, and the possibility of customs clearance before arriving at the port. This leads to time savings and a 40% reduction in operating costs.
Currently, some UAE ports offer tax and fee exemptions for goods with a WLP, and goods passing through Dubai's Silk Road will save on warehousing costs, allowing for seamless goods transportation from origin to destination. The UAE is Vietnam's largest trading partner in the Western Asia region, mainly dealing in electronic products and components, machinery and equipment, footwear, textiles, fruits, peppers, and rice.
The WLP loyalty program is based on cooperation between traders, cargo handlers, and local organizations to provide additional trade facilitation activities. Scoring, ranking, and rating members, both Vietnamese and foreign traders, will be transparently conducted on a digital platform. Notably, global corporations such as Samsung, Apple, and Foxconn are default members (platinum tier) of this program.
The World Logistics Passport (WLP) is a global initiative of the Government of the United Arab Emirates (UAE)/Dubai government, approved by Chairman of the Dubai Executive Council - Crown Prince of Dubai, Shaikh Hamdan Bin Mohammad, on March 2, 2019, and officially launched on October 13, 2019. This initiative was announced by the UAE Ministry of Economy and officially introduced at the 50th World Economic Forum in Davos, Switzerland in January 2020, with the participation of many countries, including Vietnam.
WLP is designed to reduce non-tariff barriers in international trade by streamlining the time and cost of logistics services. The WLP network expands across over 48 countries on all continents and over 15 global supply chain trade routes. Currently, the WLP network accounts for 47% of global trade turnover with 121 partners, including customs of countries - agencies responsible for providing support and implementing preferential policies for WLP members.
Cre: Goverment News
