WLP expands in Vietnam
HO CHI MINH CITY, VIETNAM - 04 MAY 2021: The World Logistics Passport (WLP), a unique loyalty programme established to increase trading opportunities between emerging markets, is expanding in Vietnam – with the Vietnam Logistics Business Association (VLA), a leading trade body, registering as a partner and signing a framework agreement. Vietnam’s status as a WLP Hub builds on the signing of a Multimodal Trade Cooperation Agreement between Dubai’s Ports, Customs and Free Zone Corporation (PCFC) and the VLA in 2019.
Vietnam is the fifth country in Asia to commit to the WLP, after Thailand, Indonesia, Kazakhstan and India. More than 10 countries are now part of the major policy initiative – with global trading Mega-Hubs including Brazil, India, and South Africa, amongst others. Major multinational corporations including UPS, Pfizer, Sony, Johnson & Johnson, and LG have also signed up.
The VLA connects domestic and foreign freight forwarders, transport, and logistics service providers – contributing to the cultivation of industry and enterprise in Vietnam, as well as the country’s overall economic performance. As one of the most dynamic emerging economies in East Asia, Vietnam’s GDP per capita increased by 2.7 times between 2002 and 2018, lifting more than 45 million people out of poverty, according to World Bank figures.
Latest estimations show the economy is set to grow 6.6 percent in 2021, despite the ongoing COVID-19 pandemic. The VLA was selected by Vietnam’s Prime Minister, Mr. Phạm Minh Chính, to implement a series of objectives to grow the country's logistics industry under its Action Plan for Enhancing Competitiveness and Development of Logistics Services – including bringing the industry's contribution to GDP up to 10%
Signed by Mr. Le Duy Hiep, Chair of the VLA, the framework agreement follows the leading trade body’s registration as a partner and endorses the WLP’s mission to strengthen and grow trade between regions and countries. Mr. Le Duy Hiep said: “Trade is critical to our country’s continued economic prosperity, with total trade amounting to 210% of GDP in 2019, according to the World Bank. It’s also vital in helping the government achieve macroeconomic targets put forward in its latest five-year plan.
“As part of the WLP, we look forward to expanding our commitment to current trading partners as well as new partners in the region and beyond as we gain access to new markets and diversify trade. In addition, we welcome the opportunity to strengthen and build relationships with other parties in the WLP, as we collaborate, sharing knowledge and skills.”
Mike Bhaskaran, CEO, WLP, said: “In 2021, we’ve seen the WLP go from strength to strength – validating a concept conceived at the World Economic Forum in Davos in 2020. As we approach our inaugural WLP Global Summit later this year, which will chart the way forward for the future of freight and logistics, I’m proud we’re expanding in Vietnam and welcoming the VLA on board.
“Core to the WLP’s strategy is the integration of land, sea and air freight. Vietnam fits well with our multimodal approach, as it’s an exporter of high-value, low-weight goods – with broadcasting and telephone equipment among its top exports currently, and textile and leather goods expected to increase. As an influential trade body, we hope the extensive membership of the VLA will support the WLP in its ambitions to welcome more local members into the programme.”
The WLP creates opportunities for businesses across Africa, Asia, Central and South America to improve existing trading routes, and develop new ones, through the world’s first logistics loyalty programme for freight forwarders and traders. It overcomes non-tariff trade barriers by fast-tracking cargo movement, reducing administrative costs, advancing cargo information and facilitating movement between ports and air.
About the World Logistics Passport:
The WLP is a unique loyalty programme which overcomes non-tariff trade barriers by incentivizing increased trade through more efficient and cheaper trade processes.
Traders and freight forwarders get increased benefits the more they trade through member hubs. The benefits include cost and time savings, and faster customs clearances. Unlocking these benefits allows nations and regions to gain access to new markets, diversify trade in existing products and increase market shares in key export products in developing economies.
Only the WLP has the scale and capabilities to develop partnerships with key Dubai logistics entities such as DP World, Emirates SkyCargo and the PCFC.
To find out more about the WLP Global Summit, please visit: worldlogisticspassport.com/wlp-global-summit
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