MALAYSIA TRADE AND TRANSPORT FACILITATION ANALYSIS AND RECOMMENDATIONS FOR VIETNAM

MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY DISSERTATION MALAYSIA TRADE AND TRANSPORT FACILITATION ANALYSIS AND RECOMMENDATIONS FOR VIETNAM Major: International Trade Policy and Law Nguyen Ngoc Tra My Hanoi - 2017 MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY DISSERTATION Malaysia Trade and Transport Facilitation analysis and recommendations for Vietnam Major: International Trade Policy and Law Full Name: Nguyen Ngoc Tra My SUPERVISOR: Assoc Prof, Dr Trinh Thi Thu Huong Hanoi - 2017 TABLE OF CONTENTS INTRODUCTION CHAPTER I OVERVIEW OF TRADE AND TRANSPORT FACILITATION 1.1 Definition of Trade and Transport Facilitation 1.1.1 Definition 1.1.2 Indicators of TF 1.1.2.1 Doing Business/Trading Across Borders .8 1.1.2.2 Logistics Performance Index 1.1.2.3 OECD TF indicators 10 1.1.2.4 Liner Shipping Connectivity Index (LSCI) 11 1.2 Principles of implementing Trade and Transportation Facilitation 12 1.3 Benefits of Trade and Transportation Facilitation 13 1.4 Implementation of Trade and Transportation Facilitation 16 CHAPTER II CURRENT STATUS AND LESSONS OF MALAYSIA TRADE AND TRANSPORTATION FACITILATION 18 2.1 Overview of the economy and international economic relations in Malaysia 18 2.1.1 The political and geographical position 18 2.1.2 Recent economic development 18 2.1.3 Overview of Trade regime 20 2.1.3.1 WTO 20 2.1.3.2 APEC 21 2.1.3.4 Other FTAs/RTAs: 21 2.1.4 2.1.5 2.2 Trade in goods 22 Trade in service 26 Malaysia’s Transport Infrastructure 26 2.2.1 Current policy and institutional landscape for urban transport 28 2.2.2 Main sea ports 29 2.2.3 Priority transport corridors, including transit corridors 32 2.2.4 IT infrastructure 34 2.3 Malaysia Trade and transportation facilitation indicators 38 2.3.1 OECD trade facilitation indicators 38 2.3.2 Logistics Performance Index (LPI) 40 2.3.3 Doing Business score 41 2.3.4 Liner Shipping Connectivity Index (LSCI) 43 2.4 Government and the trade and transport sectors 44 2.5 Lessons learned from Malaysia 48 CHAPTER III CURRENT STATUS OF VIETNAM TRADE AND TRANSPORTATION FACITILATION AND COMPARISON WITH MALAYSIA 51 3.1 Overview of the economy and foreign exchange of Vietnam 51 3.2 Vietnam’s transportation infrastructure 53 3.2.1 National Road and expressways Network 54 3.2.2 Railway transportation 55 3.2.3 Maritime Transportation 55 3.2.4 Transport corridors, including transit corridors 58 3.2.5 Vietnam’s IT infrastructure and Customs procedures 59 3.3 The Trade and transport facilitation indicators of Vietnam 62 3.3.1 Doing Business/Trade across borders 62 3.3.2 OECD indicators 66 3.3.3 Logistics Performance Index 68 3.3.4 Liner Shipping Connectivity Index 71 3.4 Trade facilitation progress in Vietnam 73 3.4.1 Simplification 73 3.4.2 Transparency 74 3.4.3 Harmonization 75 3.4.4 Use of modern technology 75 3.4.5 Cooperation 76 CHAPTER IV: RECOMMENDATIONS FOR VIETNAM BASED ON LESSONS LEARNED FROM MALAYSIA 79 4.1 Shortcomings of Vietnam’s Trade Facilitation 79 4.2 Recommendations for Vietnam based on lessons learned from Malaysia 82 4.2.1 Develop a policy framework and strong institutional capacity 82 4.2.2 Build infrastructure and transport services 84 4.2.3 Recommendations with regards to IT and customs clearance 87 4.2.4 Restructure the supply chain 89 4.2.5 Strengthen Human capital in logistic industry 90 CONCLUSION 93 REFERENCES 94 ABBREVIATION APEC Asia-Pacific Economic Cooperation ASEAN Association of Southeast Asian Nations ASW ASEAN Single Window FDI Foreign Direct Investment GATT The General Agreement on Tariffs and Trade ICC International Chamber of Commerce IMF International Monetary Fund IT Information Technology LDC Least-developed Country LMICs Lower middle income countries LSCI Liner Shipping Connectivity Index MITI Ministry of international trade and industry MYR Malaysia Ringgit N/A Not available OECD The Organization for Economic Co-operation and Development SDT Special and Differential Treatment TBT The WTO Agreement on Technical Barriers to Trade TF Trade Facilitation TTF Trade and Transport Facilitation TFA The WTO Agreement on Trade Facilitation UN/CEFACT The United Nations Centre for Trade Facilitation and Electronic Business UNCTAD The United Nations Conference on Trade and Development UNECE The United Nations Economic Commission for Europe USD United States Dollar VCCI Vietnam Chamber of Commerce and Industry WCO The World Customs Organization WTO The World Trade Organization LIST OF FIGURES AND PICTURES Figure 2.1: Annual GDP Growth of Malaysia in 2005 – 2015 (%) 19 Figure 2.2: Global competitiveness Index of Malaysia and other countries in Asia Region (2015) 20 Figure 2.3: Malaysia’s monthly external trade performance, 2008 – 2015 22 Figure 2.4: Malaysia’s Export Value in 10 years, 2006-2016 (MYR Million) 23 Figure 2.5: Service sector share of GDP (%) of Malaysia, 2015 26 Figure 2.6: Regional Standing of Malaysia with selected Asian countries in Transport and Logistics services 27 Picture 2.1: Location of major Malaysian container seaports 30 Figure 2.7: Growth of container trade (TEUs) in major Malaysian Ports 31 Figure 2.8: Corridors and Transit Trade of Malaysia 32 Figure 2.9: Malaysia’s National Single Window 36 Figure 2.10: OECD Indicators of Malaysia’s Trade Facilitation Performance (2015) 38 Figure 2.11: How Malaysia and comparator economies rank on the ease of trading across borders (2015) 42 Figure 2.12: Liner Shipping Connectivity Index of Malaysia in 2004 – 2015 44 Figure 3.1: Export structure by product in 2014 (% total exports) 52 Figure 3.2: Top partners of Vietnam in 2014 (exports, millions of USD) 52 Figure 3.3: Vietnam’s trade facilitation performance: OECD indicators 67 Figure 3.4: Logistics Performance Index of Vietnam in 2007 – 2016 (Selected indexes) 69 Figure 3.5: Components of Logistics Performance Index of Vietnam and Malaysia (2016) 71 Figure 3.6: Liner Shipping Connectivity Index of Vietnam compared to Malaysia in 2004 – 2015 72 LIST OF TABLES Table 1.1 The trading across borders indicators Table 2.2: 10 Major export and import markets of Malaysia, 2015 25 Table 2.3: Malaysia’s Investment Plans in Public Transport 29 Table 2.4: Logistics Performance Index of South-East Asian countries, 2016 40 Table 2.5: Summary of predefined stages and documents for trading across borders in Malaysia 43 Table 3.1: Total merchandise trade of Vietnam in 2005 – 2015 52 Table 3.2: Trade across borders of Vietnam in 2014-2015 (compared to Malaysia’s) 63 Table 3.3: Time and cost wasted in export and import process in Vietnam (2016) 64 Table 3.4: Documents required to export and import of Vietnam (Compared to Malaysia’s) 65 Table 3.5: Logistics Performance Index of Vietnam in 2007-2016 68 Table 3.6: Logistics Performance Index of Vietnam compared to Malaysia in 2016 70 INTRODUCTION Rationale Tradeafacilitationaisaaanew concept in international trade Tradeafacilitation is commonasense that the rulesahelp toasimplify andaharmonize internationalatrade procedures; aincluding the procedures and documentsarelated to the collection, presentation, and handlingainformation necessary for internationalacommercial transactions WTO Agreement on TradeaFacilitation was finally concluded in 2013 after a long time ofaintensive efforts to prepare andanegotiate of allamembers Up to now, according to thealatest news from WTO Center, there have been 96acountries that approved TFA (Iceland ratified TheaAgreement in 31st October 2016) Vietnam is a member of WTOaand apparently has to comply with thearegulations of WTO Agreements inageneral and TFA in particular Trade plays anaimportant role especially in contributing to the economic growth of Vietnam The rapid growth of trade in nearly two decades was achieved by the process of internationalaeconomic integration with theareduction of trade barriers and engagementawith the partner through a varietyaof agreements However, with advances in the process of implementingainternational commitments, the advantages of freeatrade in contributing to the growthaof trade are reaching certain limits It is time to have a newaapproach to enhance competitiveness, promote Vietnam’s effectiveagrowth of export andaimport On 15thaDecember 2015, Vietnamaratified and became the 54th country to ratify the WTO TF It is worth mentioning, after becomingaa member of the TFA, Vietnam will receiveatechnical assistance from internationalaorganizations and foreign customs authorities to implementathe Agreement This alsoameans that it should create favorableaconditions for Vietnam to implementathe commitments related to trade facilitation, such as free trade agreements (FTAs), Free Trade Agreements ASEAN (AFTA), theaAgreement on Trans-Pacific partnership (TPP), the Vietnam - Eurasia Economic Union Free TradeaAgreement (VN - EAEU FTA), 82 The action programsaon the Trade Facilitationaof Vietnam have alreadyabeen planned butanot been givenaan overall in masteraway for each stageaof development Theyaare mainlyalonger rambling Specificapolicy objectives areanot focused on Whileainternational tradeamarket is always changing andachallenging, it isanecessary to catch upawith the developmentatrend of the world, ourapublic policiesaand action programsajust alwaysafollows but notapioneer There is noaexclusive agency with specializedafunctionsaestablished toaimplement and manage policiesaof trade facilitation The actionaprogram, which still existsaonly on table, isathe productaof a variety of thearelevant offices andaauthorities, so that the statusa"Everybody’s business is nobody’s business"astill occur Theacomplexity and overlapaof implementationaamong the agencies make theseasprograms hardly reach the expected results 4.2 Recommendations for Vietnam based on lessons learned from Malaysia Although theaprivate sector is the mostaimportant sector to maintainatrade competitiveness, butathe government hasaa crucial role both inapromulgating the necessaryapolicy and institutionalaframework and macroeconomicalevel tissue, and providingathe infrastructure Aboveaidentified majoraconstraints and bottlenecksacan result toanegatively affect exportaflows and tradeacompetitiveness ofaVietnam This impactamight cause aalot of damageaparticularly at theatime when theacommercial competitorsaare gradually takingaactions, including significantainvestments in upgradingainfrastructure and applyingamany methods to improveatheir competition This dissertationaproposes recommendations onadifferent aspects of trade facilitation Thesearecommendations, along with specificaactions to be included in some of the mainacontents are as follows: 4.2.1 Develop a policy frameworkaand strong institutionalacapacity Firstly, theagovernment should develop a policy framework andastrong institutional capacityato implement theanational action planaon enhancing trade competitiveness.aPlan of Adjustmentagrowth model basedaon export underadomestic conditions andaaround the world will focusaon trade facilitationaand achieveahigher 83 addedavalue It is necessaryato better combineapolicies to ensureaeffective policy levers to influenceathe pillars of tradeafacilitation Coordinationameans the selection and arrangementaof actions, with attentionato the scale and complexityaof the plan to raise tradeacompetitiveness, requiredapolicy levers, andathe constraintsaof human resources Toado so, it should appointaa national divisionawhich will bearesponsible for coordinatingaactivities with specificaregulation Regulation ofaactivities of this division shouldainclude missions toacoordinate ministries, branches, localitiesaand theapublic-private partnership (PPP) projectsain developingastrategies to facilitate theacommon commercial andaurge the implementationafacilitation process and report onathe schedule of theaprogram Members of theadivision must include leadersaof governmentalaministries and business representatives Toaensure efficiency, theahead of the division shouldabe the Prime Ministeraor the Deputy Prime Ministerain charge of economy This isathe appropriate step becauseathat the reform will beacarried outasynchronously from the stage ofasettling administrative procedures (through NSW) to test andacheck, inspection, qualityaassessment of export and importagoods subject to specialized management andasettle the problems in a comprehensiveaway This is the party toacommand relatingastakeholders On 22nd October 2016, the NationalaSteering Committee on the ASEANaOne Stop-Shop (OSS), NationalaOSS and trade facilitationahas issued Decision No 323/QD-UBCDASWaon promulgating Regulationsaof the National Steering Committeeafor ASEAN OSS, National OSS andatrade facilitation It can be stated that this isaa step in the right directionabut somewhat late by one yearaafter the ratification ofathe TFA, the Government of Vietnam foundedathis organization In addition, theafunction of promoting tradeafacilitation was added as partaof the National SteeringaCommittee for ASEAN OSS, National OSS It has notabeen seen as a reallyaimportant function commensurateawith the significance of the establishment of aaspecial committee that shouldabe empowered to coordinateaall trade-related agencies andacreate unity in directing, generallyaoperate grant from the governmentalevel for the reform and simplificationaof administrative proceduresain the field of foreign trade It isaneeded to generate the maximumarole in assisting the 84 governmentaand the Prime Ministerato direct and administer, andacoordinate the activities of ministries, ministerial-levelaagencies; division and otherarelevant organizations; consideraand research, put opinionaon the amendment, supplement, repeal orabuild a new system of legaladocuments suitable foradeployment requirements, operationalaASW, NSW and commitain articles international conventionsathat Vietnam has signed orajoined to facilitate trade andaexchange of goodsaacross the borderabefore posing the competentaauthorities foraconsideration and promulgation Moreover, itashould improve the efficiencyaof specializedacargo inspection theacargo, which is consideredaas the key issue inafacilitating trade across borders inaour country today accordingato many experts Because it is a realathat there hasano unique unitsain charge of unified directionaat the governmental levelaso that the specialized examinationaof implementation of exportaand import goods has remainedasluggish, not receivedathe powerful penetration of allaagencies and relevantadivisions, so this is stillathe major hurdle in effortsato reduce customs clearanceatime In addition, Vietnamaneed to have someamaster plans to linkatrade competitivenessawith industrial policies, likeaMalaysia has performedasuccessful Experience in otheracountries shows that a successful industrialapolicy requiresaboth institutionalacapacity and humanaresources, two areas thataVietnam currentlyalacks To buildacapacity on the two areas, itaneed medium and long termaefforts In short term, thereashould be an alternativeasolution that can take advantageaof comparative advantages, andacreate a lot moreavalue added Comparativeaadvantage of Vietnam is nowacheap labor and it becomesamore and more advantageawhen China’s labor costs areaincreasing Currently, Vietnam'saexports are mainly basedaon this advantage Asamentioned, creating greateraadded value througharestructuring the supply chainais the immediateastrategy 4.2.2 Build infrastructure and transport services Secondly, necessaryapolicies is to build infrastructureaand transport services which supportathe linkages betweenadomestic and internationalaproducers to increase exportsaand imports Developingaand linking its infrastructureawill be one 85 of Vietnam’samajor tasks to reachacompetitiveness and beaintegrated better into global supply chains Whileacountries like Malaysia are actively focusing on investmentsain infrastructure to supportatrade, Vietnam will loseacommercial competitivenessaif more investmentsain transport infrastructureaare not concerned, and failure to ensure the useaof resources effective Toado so, likeaMalaysia, Vietnameseagovernment mustaredirect strategy fromabased entirely on fundsaof the stateato mobilize externalafunds for infrastructureainvestment In addition, itashould call the privateacapital into infrastructureainvestment throughapublic-private partnership instruments (PPP) With thearaised funds, it shouldawork towards strengtheningatrade corridors and accessato the international gatewayato strengthen tradeacompetitiveness The performanceaof ports plays an important roleain export competitiveness Hanoi-Haiphongacorridor, Saigon - Cai Mepaport should operate with greateraefficiency than that at presentato become multimodalatransport corridors andaconnections between highwayaand inlandawaterway The strategy must alsoaovercome the weaknessesain current logisticsaservices The government should be aapartner with theaprivate sector to developamodern logisticsacenters around twoamajor port areas Toado so, the policyashould be studied andathen the recommendationsainclude measures toastrengthen the institutionalaframework development servicesaand logistics companies inaVietnam should beaproposed A major challengeawill be to synchronizeathe different infrastructureatypes in order to increaseathe flow of goodsathroughout theawhole supplyachain Over the years, Vietnamahas constantly upgradedaphysical infrastructure However, athese upgrades haveaoften beenainefficient in termsaof costs and impactsaon competitiveness In manyacases, infrastructure projectsahave been used asaa tool of regional policyaand relied heavilyaon externalafunding In respectaof infrastructure innovation, someageneral recommendationsaare given: - Evaluatingaphysical infrastructureaprojects by theiracontribution to the competitivenessaand not as demandadrivers oracompensation toaregions Publicprivateapartnerships shouldabe used as anainstrument to enhanceathe effectivenessaof capital, notajust to mobilizeacapital 86 - Reliableastatistical dataaon the sector is stillamissing I recommendaissuing a reliable monthlyastatistical reportacovering all relatedaimport-exportadata We furtherarecommend to have anaupdated information of theainfrastructure development (bothathe planning projectsaand the on-goingaprojects) advisedain the public mediaaon a monthly oraquarterly basis - There should be aatransparent andaenforceable system foraprioritizing, selecting, managingaand evaluatingaprojects A centralizedamechanism toaplan, coordinate andaoverseeainfrastructureadevelopment should beainstalled - Furtheradeveloping vocationalatraining is recommendedaas an addition to theaexisting universityaprograms in order toasupport the sector, as theagrowing sector willacontribute significantlyato employment ofaVietnamese - Buildingatrade logistics strategyaand legalaframework for logisticaservices: Advancedalogistics projectawith a clear definitionaof logistics services, alogistics businessaconditions, and limit thealiability for logisticsaenterprises; strengthenathe legal frameworkafor the development ofalogistics serviceaindustry and companiesain Vietnam - Strengthenathe legal frameworkaand policiesato ensure profitsafor BOT, BTO and PPPato mobilizeanon-state fundsainvested in transportainfrastructure and logisticsaservices - Developamulti-modalatransport Supportaoperation ofaports andaindustrial zones throughaInland containeradepots (ICDs) oralogistics centers: Reviewasites and services andaencourage ICD toabecome the logisticsacenter and reallyanear the port and supportaof industrial zonesaaround In detailaof manneraof transportation, somearecommendations are raisedaas follow: • Seaportainfrastructure: - Expandaport capacities by ataleast 20% per year toakeep track - Speed upathe completion ofathe channel dredgingato meet the highademand of largeraships 87 - Dedicatedaberth and terminal for bargeatransportation should beabuilt - Improvingainfrastructure linksafrom/toaseaports asawell asabelt ways connectingamajor industrialaareas - Reduceaport charges to raiseaattractiveness of Vietnameseaports, leading to increaseathroughput volumeawhich will supportaVietnamese portsamaster plan - Focusaon foreignainvestmentacapital • Airportainfrastructure: additionalawarehousing space for cargoahandling are recommended • Roadainfrastructure: Upgradeaexisting roads and planaadditionalanew road links andaconnections to cope withatraffic, new beltwaysain big citiesalinking to portaand airportainfrastructure inaorder to increaseaaverage speed onaroad infrastructure • Railwayainfrastructure: Enlargeathe cargo railasystem, especiallyafor linking portsawith the keyaeconomicaareas (e.g for containeratransfers betweenaports and keyaeconomic areas) Inaaddition, domestic railwaysashould beaupgraded toacater forathe increase in trafficaas an alternativeacost competitiveasolution to trucking 4.2.3 Recommendations with regards to IT and customs clearance It isanecessary to have a goodalegal framework forathe program of modernizationaof customs There mustahave further revised CustomsaLaw in order to createaa legal frameworkafor the simplificationaof business processesaand risk managementapractices in accordance withainternational standards Moreover, ait should establishaa risk managementasystem to enhance complianceamanagement However, evenaif progress onasimplification, it is notapermitted to neglect theaissue of coordinationaamong different agenciesabecause this is notajust a matter of itsaown customs Specifically, toaease documentation andaharmonization of custom standardsato help Vietnam moreaintegrated andaattractive, customsaand border trade managementaagencies should: 88 • Simplify customsaprocedures to reduceathe time and costs foraboth the customeraclearance and customsaofficials It is recommendedato standardize processesabetween different customsazones in order to saveatime, work and money for both importersaand exporters Enablingapre-arrival clearance isaa major achievementain custom clearanceasimplification It is recommended to maintaina “clear on arrival” by Checkingabased on documents priorato arrival with a reducedaphysical check based on risk assessmentafrom documentation (change from ‘physical control’ato a ‘documentaryacontrol’aregime) Some physicalacontrol must remainabut only to supplement ‘riskamanagement’ basedaactivities An effective pre-arrivalaclearance measure enablesacustoms to focus itsaresources and efforts onahigh risk goods/activitiesaand allows unimpededadelivery of otheragoods Successfulapre-clearance doesanot depend on havingaan Electronic DataaInterface (EDI) system An EDIasystem that enhancesaefficiency in transferringadata should be upgradedaregularly • To overcomeadifficulties in the applicationaof risk management toaenhance the level ofacompliance, risk managementaby computer by only aacentral agency thatais responsible for theaconstruction and description ofarisk retention is recommended Thisahelps to share informationareceived from the other customsaauthorities and integratedagoods inspect detectorainto the risk assessmentaprocess So that it mayahelpful to establish independentaunits of central and localarisk management, apply risk managementaat all border managementaagencies • Implementaanti-corruption integrity of plan foraimproving and enhancingaimages customsaofficials: building integrityastandards to apply assessment ofacustoms officials; developamechanisms of cooperation betweenacustoms and enterprises • Applicationaof IT to improveathe efficiency of customs andapromote transparency IT systemsahave been used to support theaprocessing of customs declarationsasince the late 1990s and graduallyaupdated by officials and localacontractors However, this systemadoes not provide allathe 89 functionality needed toaintegrate fully supports the applicationaof modern approachesain the managementaof Customs Latest EDIaformat (Electronic DataaInterface) are needed toacope with existingaglobal links It isaalso recommended thatathe government should focusamore investment intoatheir IT systemsadevelopment for the plannedaEDI linkage andaE-Customs procedures toarun properly • Implementathe National SingleaWindow (NSW) to coordinateaall border managementaagencies and harmonizedaall the procedures andaprocesses of tariff andanon-tariff: build a uniqueaelectronic door that receivesacustoms clearance documentsaand the consolidatedadatabase to coordinate the activitiesaof border managementaagencies • Paymentaprocedures: Customsaduties and taxes must still be paidain cash for immediateaprocessing of shipments Bankatransfer is possible but needsabank receipt beforeaprocessing which is timeaconsuming Enterprises shouldabe allowed to depositatheir funds to drawaduties and fees from inaorder to have anaadditional and fastanon-cash solution for releasingashipments 4.2.4 Restructure the supply chain The next groupaof policy recommendations isato restructure the supplyachain to enhanceavalue added and activelyaparticipate in the global supplyachain Restructuringawork should payaattention to the factathat the supply chain isanot the same Foraoverview of the processingaindustry, the government's roleais not merely rearranging theacurrent supply chain to reduceacosts, which is restructuringathrough measures: • Promoteadomestic production of rawamaterials to reduce dependenceaon imports: Evaluateaopportunities to strengthenathe quality of the currentainput supplied to theamanufacturers of exports, diversifyaand provideamore complex inputs, coordinateawith the private sectorato prepare a strategyato implement thisaopportunity; based onathat assessment, develop aaplan of action to developasupporting domesticaindustries 90 • Collaborateawith industry to developaa shared vision, coordinateato increase theavalue of the finalaproduct with added valueathrough the supplyachain restructuringaby changing the order cycleaand the businessamodel; • Develop manufacturingazones to promote economicaadvantages of scaleaand attract foreignainvestment: review the currentaprogram on theaestablishment of processingazones Develop processingazones in the developmentaprogram of industrialaproduction and supplyachain of many materials andaservices to further logistics; determineathe value willaprovide for the goalaand chosen markets, designathe surface to maximizeavalue • Provideatransportation infrastructureato link the productionacenters and zones with transport/tradeacorridors, and thosealinks are parts of theamaster planaof transport sector; • Strengthenathe mechanisms of contractaenforcement, especially inathe trade of agriculturalaproducts in order to reduceacounterparty risk Construct documentsaforms togetherawith mechanisms toaadjust prices followingathe fluctuations inacommodity pricesabetween the time ofasigning the contract and theatime of completionaof the transaction • Diversificationaof agricultural exportsabased on the qualityaand type: Developingatraceability systems andacertification of agriculturalaproducts in order toaencourage diversificationaand conservation ofaidentity PPP set up agenciesato set and enforceastandards of riceaand coffeeaclassification • Strengthenathe supply ofatrade finance, particularly foralocal businesses; • Formalizeapublic-private partnershipsain support of the aboveaactivities 4.2.5 Strengthen Human capital in logistic industry Logisticaindustry is one of theaimportant industries that are facingawith a lack of skilled labor with stable quantity It is necessaryato find the solutions for these problems of offering higher education institutions, shortageaof career opportunities in the logisticsaindustry to achieve the highestaefficiency • Solutions of trainingahuman resources from universities, colleges 91 Vietnamashould have a major on logistics/supply chainamanagement that is formally and officiallyatrained in the universities and collegesaso the new humanaresources will be sustainableasupply and high quality Therefore, in order to serve the long term objectives of human resource sustainable development, the Ministry of Education and Traininganeed to take significant consideration to support the universities more strongly to allow them to openalogistics-related majorsaor schemes • Strengthen cooperationabetween ministries, sectors related toalogistics services To promote logisticsaindustry to develop extensively andacomprehensively, the ministriesaand agencies related to logistics servicesasector need to coordinate closely together, especially the Ministry ofaTransport, Ministry of Industry and Trade, Vietnam Posts andaTelecommunications Group, the Ministry of Planning and Investmentaand the General Department of Customs, Vietnam Chamber of Commerce and Industry, etc to beaable to clearly define their ownacapabilities and responsibilities of each party in the strategicadevelopment of logistics field in general and human resourcesain logistics in particular Ministry of Transport need to work closely withathe Ministry of Industry and Trade and otheraministries, branches and localities to continue implementing coordinatedasolutions, including solutions for the development of human resources andainternational cooperation On the other hand, all of themashould cooperate with universities and businesses, to create a relationship ofamutual interaction to get theanecessary support, closelyacombine training and practicing • Promote the roleaof the short and medium termatraining programs It is needed toacontinue to promoteathe short and medium term training programs that areaperformed by the institutes, centers, associations and education companies Short-termacourses should focus on the segment-specificaoperational business or serve a specific task or basic or advance knowledge ofajob training for the middle and senior managementastaffs ofaenterprises and the State 92 • Training human resourcesafrom the enterprisealogistics Besides the help of training fromaassociations, organizations, universities, businesses also needato have policies of building and training their own staffsaand employees, develop their human resourcesapower in an optimal way, contributeato the sustainable growth • Besides, localaauthorities should take measures to support theaimmediate implementation of aatraining program on governanceaawareness Logistics and Supply Chain for businesses in thearegion, supporting the process of in-depth training on communicationainternational freight, organization andamanagement & operationaof seaports, theaorganization of cargo containeratransportation, building a long-termastrategic development of humanaresources in the futureachildren • Promoteacommunication of the importanceaof logistics Poor quality of human resources in the field of logistics in Vietnam today is one of the main causes to the limited quality of service provided by the Vietnam logistics business Despite the abundance, quality human resources is soaworrisome limited So the education of logistics human resources is extremely important and worthy to be focused on 93 CONCLUSION Trade facilitation is aacrucial sector needed to be remarkablyaconcerned in development of firstaforeign trade and thenaeconomy as well, especially for developingacountries However, in fact, many of theseacountries including Vietnam have notaconcentrated on specific policies for tradeafacilitation In the region, besidesaSingapore, the leading performance country in trade facilitation, Malaysia is another good case with manyaexperience close to the status of Vietnam The dissertation focuses onaanalyzing the status of Malaysia and Vietnam’s trade facilitation progress with respectively comparison and thence generating policyarecommendations After withdrawing somealessons from the case of Malaysia and indicating some disadvantages in the trade facilitation of Vietnam, the author concluded some experience learned can be applied and adopted in Vietnam The objectives of the dissertation are finishedaby generating some recommendations for Vietnam to enhanceatrade and transportation facilitation It can be summarized in groups of recommendations: (1) Develop a policy framework and strong institutional capacity; (2) Build infrastructure and transport services; (3) Recommendations with regards to IT and customs clearance, (4) Restructure the supply chain, (5) Strengthen Human capital in logistic industry It is quite promising that more effective methods will be put into effect in the foreseeable future which push Vietnam to promoteabetter trade facilitation like some good performers in thearegion such as Singapore and Malaysia A shortcoming of theadissertation is that the study hasanot been provided helpfularecommendations for policy on enhancing Vietnam’s participation and compliance with WTO Trade FacilitationaAgreement as well as the coordination with other countries in thearegion since the entry of the TFA has already come into force, an action program of implementation of the Agreementais urgent There should be more research on this subject to assist theaGovernment to organize the program 94 REFERENCES WTO, A training package: What is trade facilitation, WTO 1998, cited in Grainger, Andrew, Customs and Trade Facilitation: From Concepts to Implementation, World Customs Journal, Volume Number 2007, p.1 (intext citation: WTO, 1998) World Economic Forum, Global Competiveness Report and data files, World Economic Forum 2015 WTO, Agreement on Trade Facilitation, document reference WT/MIN(13)/W/8WTO 2013 OECD, Implementation of the WTO Trade Facilitation Agreement: The Potential Impact on Trade Costs, Trade and Agriculture Directorate - OECD 2015 (In-text citation: OECD, 2015) OECD, Business Benefits of Trade Facilitation, OECD 2002(In-text citation: OECD, 2002) Trinh Thi Thu Huong - Phan Thi Thu Hien, The WTO Agreement on Trade Facilitation: Opportunities and challenges for Vietnam, External economics journal, no 71/2015, 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OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY DISSERTATION Malaysia Trade and Transport Facilitation analysis and recommendations for Vietnam Major: International Trade Policy and Law Full... Overview of trade and transportafacilitation; Chapter 2: Currentastatus and lessons of MalaysiaaTrade and Transport Facilitation; Chapter 3: Current status of Vietnam Trade and TransportaFacilitation;... Barriers to Trade TF Trade Facilitation TTF Trade and Transport Facilitation TFA The WTO Agreement on Trade Facilitation UN/CEFACT The United Nations Centre for Trade Facilitation and Electronic