Taming unpredictability as source of growth : what more competitive freight logistics can do in Vietnam?

This note summarizes the findings of authors, a World Bank report on Vietnam's logistics sector performance, challenges, and opportunities. The key root causes for supply chain unpredictability are: cumbersome and inconsistently applied government regulations; lack of automation in key trade-related processes such as trade clearance; fragmented modal planning in transportation; a belief among shippers and logistics service providers that facilitation payments are necessary to avoid delays in supply chains; low barriers to entry in trucking; and major supply-demand imbalances in infrastructure provision, particularly in deep water port facilities at the Southern gateway of Cai Mep-Thi Vai. The key actions in promoting a more sustainable supply-demand balance in the trucking industry by introducing a safety and overloading compliance-rating system for carriers and by providing better access to credit for fleet expansion and modernization; truck emissions regulation should be gradually phased in over the medium term. Better transport and trade logistics - the chain of operations involved in moving raw materials and finished products from origin to destination, both domestically and internationally can play a significant role in increasing productivity going forward.