Cargo handling at Hai Phong port
Nhan Dan – Minister of Transport Dinh La Thang has pledged to continue to reform administrative procedures and to take other measures in order to help shipping lines and port operators which are struggling due to rising operating costs.
The minister made this promise during a dialogue between the Ministry of Transport and marine service providers on August 5.
Thang said he would submit a proposal to increase the floor price for handling goods at sea ports to the National Assembly’s Standing Committee. He promised this after port authorities complained of increased costs for land leases.
Meanwhile shipping companies stated that they are suffering a serious lack of capital which is necessary to modernise their fleets and maintain their operations.
According to Director of the Vietnam Marine Administration Nguyen Nhat, the majority of Vietnam’s 1,700 strong fleet are bulk carriers and small-capacity vessels while the number of container ships is only 28.
In addition, the domestic fleet’s cargo market share only accounts for about 10-12% of Vietnam’s total exports and imports. The remaining share belongs to foreign shipping lines.
Therefore domestic companies proposed that the Government should introduce measures to remove difficulties for domestic competitors including; lowering loan rates, reducing value-added tax to 5% and deferring other tax payments.
Minister Thang said he would take immediate action on the issues directly under the Transport Ministry’s mandate and he will seek co-operation from other ministries and agencies to address issues outside of his authority.
Transport minister pledges support for domestic marine service companies Related image(s)
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