Rail transport has the advantage of being consistently operational, less affected by pandemic, and has lower transportation costs compared to other modes of transport. Therefore, the trend of developing international combined rail transport for export and import freight is inevitable.
Rail transport has the advantage of always being uninterrupted
To make the most of that advantage, the General Department of Customs suggests “Enhancing the export of agricultural products through official channels via railway routes.”
According to the General Department of Customs, since the beginning of 2020, due to the impact of the Covid-19 pandemic, the measures implemented by countries to combat the virus have affected the global supply chain, causing congestion in goods transported by sea and land, and leading to a significant increase in freight rates.
Particularly, due to the Chinese government’s implementation of the “zero COVID” policy with strict measures to combat the COVID-19 pandemic, the movement of goods, vehicles, and people across the northern border has encountered difficulties. Thousands of transport vehicles carrying import and export goods are stuck and congested at the border areas of both countries, causing significant losses for businesses.
In light of the above situation, the government and various ministries have made efforts to implement numerous solutions to facilitate trade and promote the clearance of goods, especially agricultural products. However, the implemented solutions have not truly alleviated the difficulties.
Since the Lunar New Year of 2022, the volume of goods imported and exported through the northern border land border gates has continuously declined. The volume of goods cleared through border gates in a trickle manner often falls into a passive state according to notifications from Chinese authorities, despite the trade facilitation measures and the establishment of green zones and buffer areas at the border gates implemented by localities.
Meanwhile, rail transport has the advantage of being consistently operational, less affected by epidemics, and has lower transportation costs compared to other modes of transport.
Therefore, businesses tend to shift towards choosing the form of international combined rail transport for import and export goods. This is an inevitable trend. Therefore, it is necessary to “Enhance the export of agricultural products through official channels on railway routes.”
It is necessary to invest in infrastructure with sufficient capacity to meet transportation needs
Currently, the Customs sector has implemented electronic customs procedures (VNACCS/VCIS) and equipped the necessary conditions, infrastructure, equipment, and arranged sufficient personnel to ensure the quick and convenient processing of customs procedures for import and export goods through railway border gates, while ensuring customs supervision and inspection of imported and exported goods.
However, according to the Ministry of Finance and the General Department of Customs, the capacity for transporting and loading goods, as well as the infrastructure at the station, has not met the increasing trend of transporting import and export goods by rail.
Therefore, it is necessary to invest in railway infrastructure to have the capacity to meet the increasing demand for export and import transportation in the market; to take advantage of the constant flow, which is less affected by epidemics, contributing to reducing logistics costs and increasing the circulation of goods through international intermodal rail transport.
To ensure the effective development of import and export cargo transportation on the railway transport route, on May 23, 2022, the Ministry of Finance issued document number 4612/BTC-TCHQ to the Ministry of Transport, requesting the Ministry of Transport to implement several solutions to enhance the capacity and efficiency of export and import cargo transportation by rail.
Specifically, the Ministry of Finance has proposed to swiftly invest comprehensively in upgrading and investing in infrastructure at the international intermodal terminals of Dong Dang, Lao Cai, and Yen Vien, such as: expanding the storage area, constructing sturdy fences, equipping with camera systems, barriers, electronic scales, warehouses for inspection and storage of contraband goods, and providing generators for freight trains.
Building and submitting to the competent authorities the supplementary planning for Kep station in Bac Giang province and other stations with adequate infrastructure to upgrade them to international intermodal stations, in order to meet the increasing demand for international intermodal transport by rail and to maximize the strengths of the railway sector.
Promote the socialization of railway transport business activities in accordance with Article 5 of the Railway Law, allowing entities outside the Vietnam Railway Corporation to engage in railway transport operations to enhance competitiveness and improve productivity and efficiency in railway exploitation and transportation.
At the same time, promote and apply information technology systems in the reception and exchange of data regarding goods and transport vehicles between the international railway stations of Vietnam and China, as proposed in the protocol of the 43rd Vietnam-China Border Railway Conference on November 28, 2019; moving towards providing advance information on goods, vehicles, and individuals exiting and entering the country in the declaration documents for customs, border control, health, and quarantine agencies through electronic means as regulated, in order to enhance the efficiency of exploiting and clearing import and export goods and transport vehicles exiting and entering the country.
On the part of the Ministry of Finance, based on the planning and the announcement of international intermodal railway stations, and considering the capacity and conditions of the infrastructure, it will coordinate with the Ministry of Transport and relevant ministries and sectors to organize the apparatus, arrange personnel for customs procedures, inspection, supervision, and control of import and export goods, and enhance the efficiency of exploiting and clearing import and export goods and vehicles at international intermodal stations in accordance with the law. This helps to mitigate risks, ensure export and import activities, and address congestion at road border gates in the context of the pandemic and China’s continued border closures.
