Potential from World Logistics Passport program


From May 2021, Vietnam has become one of 29 members (hubs) of the World Logistics Passport (WLP) through a memorandum of cooperation between VLA (Vietnam Logistics Association) with WLP under the support of Vietnam Ministry of Industry and Trade (MOIT) and the Vietnamese Embassy in the UAE, paving the way for Vietnam's logistics to participate in the global logistics ecosystem as well as the network of WLP members.

Until today, 22 Vietnamese logistics enterprises have registered to participate as members of the WLP program. Accordingly, products and goods of Vietnamese enterprises when granted WLP by the UAE will be facilitated and supported in terms of customs clearance, air tax exemption, reduction of inspection time and loading on fast means of transport, reducing storage time up to 48 hours, goods can be cleared before reaching the port, thereby saving time and 40% of operating costs.

Currently, several ports in the UAE are exempting taxes and fees with WLP, goods passing through the Dubai Silk Road (DSR) will save money on storage, goods able to be moved smoothly from the origin to the destination. UAE is Vietnam's largest trading partner in West Asia, with main products being electronics and components, machinery and equipment, footwear, textiles, vegetables, pepper, rice...

According to MOIT, in 2022, Vietnam's trade surplus with the UAE has reached $3,3 billion. With these advantages, Dubai Customs is expecting goods traded from Vietnam to new markets to increase from 0.5% to 27%.

To implement the program effectively, Vietnam as well as other country members will have the participation of core partners such as Customs, seaport and airport operators, logistics associations, airlines and enterprises in industrial parks, export processing zones, inland ports...

The WLP loyalty program is based on the partnership between merchants, freight forwarders and local organizations to provide additional trade facilitation. Scoring and ranking, membership level for both Vietnamese and foreign traders will be done transparently on a digital platform. It is known that global corporations such as Samsung, Apple, Foxcon ... are default members (platinum level) of this program.

The World Logistics Passport (WLP) is a global initiative of the Government of the United Arab Emirates (UAE)/Dubai government, which was approved on March 2nd, 2019 and officially started on October 13rd, 2019. This initiative was announced by the UAE Ministry of Economy and officially introduced at the 50th Davos World Economic Forum, Switzerland in January 2020.

Accordingly, WLP is built to reduce non-tariff barriers in international trade by reducing the time and cost of operating logistics services. The WLP network spans over 48 countries on all continents and over 15 trade corridors in the global supply chain. WLP network currently accounts for 47% of global trade turnover with 121 partners, including customs of countries - the agency assigned to sponsor, preside over the implementation of preferential policies for WLP members.

Source: https://congthuong.vn/co-hoi-tu-chuong-trinh-ho-chieu-logistics-the-gioi-243566.html

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