Logistics firms losing out to foreign rivals

For loose cargo and container transportation, local ships are qualified for serving domestic routes but there is little room left for them due to the overwhelming presence of foreign competitors, said Do Xuan Quynh, general secretary of VSA.

The Ministry of Transport last week held a meeting on this issue and came to the conclusion that it will not issue more licenses to foreign ships operating on local routes provided that local ships can meet the demand.

Trinh Minh Hien, head of the Legislation Department of the transport ministry, asserted that such a move does not violate Vietnam’s commitment as a World Trade Organization member.

In fact, Article 7 of Vietnam’s Maritime Code stipulates that local ships are prioritized to transport cargo and passengers on local routes. Therefore, only when local ships are unable to meet the demand can foreign ships take over.

Protecting local ship owners is normal in other countries, especially in cases of super-heavy goods or liquid gas transportation.

Deputy minister of transport Nguyen Hong Truong said that in future, the ministry will only grant licenses with six-month validity to foreign ship owners.