Improving its International Image

Improving its International Image

The Vietnam Freight Forwarders Association (VIFFAS) successfully organised its fourth Congress in Ho Chi Minh City on May 28. Bui Ngoc Loan was re-elected as chairman of the association, his fourth tenure (2004-2009), Nguyen Tham, deputy chairman and Vu Xuan Phong, general secretary. On this occasion, the association reviewed its activities over the past ten years and worked out development orientations for the coming time.

Great contributions by VIFFAS

Evaluating the achievements recorded by VIFFAS, chairman Loan stressed that Vietnam freight forwarding had seen a rapid development in quality, which has improved its status and contributed to Vietnam's transportation activities. This is thanks to the Prime Minister and State management agencies that have created favourable conditions for business associations, as well implemented strategies on developing and increasing the quality of trade services of the Ministry of Trade and the Ministry of Transport.

Acting as a bridge between enterprises and State management agencies, VIFFAS has always made great efforts to understand business needs and obstacles, creating open conditions for production activities. The association has proposed the Ministry of Finance to delay the application of a tax rate of five per cent on export transportation fees of foreign transportation enterprises via Vietnam's agents. The association has also proposed the Government not to dabble maritime service charges. In international relations, VIFFAS joins periodical conferences to exchange experience in management. It successfully hosted the 10th meeting of the ASEAN Freight Forwarders Association (AFFA) in Hanoi in November 2000. This event has raised the position of VIFFAS on the international scene.

Service quality yet to be optimised

Due to a lack of regulations and an incomplete legal framework on activities of freight forwarders, the quality of services have yet to meet the requirements of the industry's development plans. Cases of unfair competition have occurred and the irresponsibility of some enterprises has opened up smuggling opportunities.

While the National Assembly discussed anti-monopoly and anti-dumping draft laws, only TSC Company has power to do business in warehouse services in the Tan Son Nhat international airport. This shows that fair competition has yet to be established among freight forwarding enterprises. Also, there is now the Decree N0 10, stipulating conditions on maritime services. A lack of decrees stipulating activities of air and inland waterway freight forwarding services has put obstacles and created gaps for enterprises to take advantage, resulting in negative impacts in business activities.

Development orientations

After reviewing its achievements and shortfalls, VIFFAS has proposed the Ministry of Trade and the Vietnam Chamber of Commerce and Industry (VCCI) to promote the establishment of an association of goods owners as a partner for negotiations with IADA to remove obstacles and boost cooperation with foreign partners. Moreover, for further rapid and sustainable development, VIFFAS will set up a freight forwarding information, training and consultancy centre. Training courses on EDI (electronic data interchange) system application in freight forwarding will be held for members.

The number of VIFFAS has increased from 41 enterprises in the third tenure to 82 enterprises, including 52 members of FIATA (International Federation of Freight Forwarders Associations). This figure shows the great development of VIFFAS. The association hopes that alongside the removal of obstacles and perfection of legal documents by State management agencies, it will make great contributions to Vietnam's economic development.

• T.Lan