Five Vietnam firms join World Logistics Passport initiative

Five Vietnamese firms have joined the World Logistics Passport (WLP) as part of the addition of Vietnam as a hub into the United Arab Emirates-led initiative, according to agreements signed on Tuesday.

The five are Railway Transport and Trade JSC (Ratraco), an affiliate of state-run Vietnam Railways; national flag carrier Vietnam Airlines; T&Y Superport Vinh Phuc JSC, a joint venture between Vietnam’s T&T Group and Singapore’s YCH Group; Vietnam Shippers’ Council; and Vietnam Coffee Cocoa Association (Vicofa).

The WLP initiative, featuring 29 hubs, aims to facilitate global trade and market access by reducing fees and providing support to overcome trade barriers. Abdulla Alsuwaidi, WLP manager, emphasized Vietnam as a strategic location for regional transportation and production.

Tran Thanh Hai, vice head of the Foreign Trade Agency under the Ministry of Industry and Trade, said Vietnamese firms under the WLP program are subject to reduced inspection, low storage duration, customs clearance prior to arrivals at ports, and other benefits, which could reduce operational costs by 40%. Besides, some ports in the UAE offer tax and fee exemption for products under the WLP program.

The WLP now accounts for 47% of global trade with 121 partners covering 48 countries and 15 major trade routes.

The UAE is Vietnam’s biggest trade partner in the Middle East with bilateral trade reaching $8 billion last year, according to UAE Ambassador to Vietnam Bader Abdulla Al Matrooshi. He expected more Vietnamese partners would join the initiative.

Foreign-invested companies in Vietnam posted a trade surplus of $41.9 billion in 2022, while the country’s trade surplus reached $11.2 billion, according to the General Statistics Office (GSO).

The country's export value in the first two months of this year hit about $49.44 billion, down 10.4% year-on-year. The period’s import spending reached about $46.62 billion, down 16%.