World Logistic Passport: Opportunities for Vietnamese enterprises to participate in the "Dubai Silk Road"
According to Customs World Dubai, Vietnam's export value of $220 billion per year is an encouraging figure but still has not fully realized the inherent potential of Vietnamese products. Because, there are many markets with high trade opportunities, but the export proportion is still low, such as Africa and Latin America, the figure is less than 0.5%.
Dubai is seen as the hub for human and freight transshipment between countries and continents, with 3 billion people each year. With the connection between airports, seaports, airports and warehouses to minimize clearance procedures, according to the development unit of the "Dubai Silk Road", this is an opportunity for Vietnamese businesses.
According to Ms. Nadya, Managing Director of Customs World Dubai: "When businesses have a World Logistic Passport, they will have access to interconnected services to reduce storage time up to 48 hours, increase trade and reduce spending. For example, goods will be cleared before arriving at the ports, then the transport activities are automatic and free.From the figure of less than 0.5%, we expect Vietnam's exports to new markets up to 27% ".
World Logistics Passport provides a unique set of financial and operational advantages to businesses and shipping companies by connecting government entities, including Customs and Trade Dubai, with suppliers. logistics services such as DP World and Dnata, and facilitate trade between related agencies in Dubai.
Dubai's sophisticated logistics services will further enhance the provision of value to investors and businesses by saving time and effort and reducing operational costs. This is a powerful tool that will lead to increased sales.
In 2018, Vietnam's trade surplus to the UAE was $4.73 billion. According to the Ministry of Industry and Trade, Vietnam's strong commodities such as agriculture, seafood, fresh vegetables, processed food and construction materials are continuously promoted and supported in the distribution system in the UAE such as: Lulu, Choithrams, Al Maya, Spinneys.
On the UAE side, the Minister of Economy of the United Arab Emirates (UAE) affirmed that, in addition to the traditional field of oil and gas, businesses in the core areas such as logistics, ports, aviation and tourism. UAE hotels are also choosing Vietnam as a destination and a gateway to further penetrate the market of 600 million people in Southeast Asia.
According to Mr. Sultan Bin Saeed Al Mansoori, Ministry of Economic Affairs of the United Arab Emirates (UAE): "This is a new development milestone between the economy and trade of Vietnam and the UAE. Coming to Vietnam this time, We have 16 businesses in many fields, such as ports, logistics, energy and retail distribution, with a number of trade promotion organizations.On the UAE side, we will facilitate and offer incentives for enterprises on both sides of the bilateral cooperation process ".
Accumulated to the end of August 2019, the UAE currently has about 20 investment projects in Vietnam with a total registered capital of $50 million.