Vietnam doesn't completely refrain from entrepot trade, but the scale is relatively small. There are mainly the following reasons. Firstly, the port infrastructure needs to be improved. Entrepot trade relies on efficient ports. For example, the Port of Singapore has advanced equipment and strong handling capacity. However, the loading and unloading efficiency of some ports in Vietnam is low, and the storage capacity is limited, which affects the rapid transshipment of goods. Secondly, the logistics distribution system is not sound enough. Entrepot trade requires that goods can be delivered to the destination in a timely and accurate manner. The integration of domestic logistics information in Vietnam is insufficient, and the transportation route planning is not good, which increases the transit time and cost of goods. Thirdly, the financial services are not mature enough. Entrepot trade involves financial services such as fund settlement and trade financing. The financial market in Singapore is developed and can provide diverse financial products. The financial services in Vietnam are relatively single, which restricts the development of entrepot trade. Fourthly, there is a lack of mature supporting trade services. For example, professional customs declaration, freight forwarding and other services are not perfect, which affects the enthusiasm of enterprises to carry out entrepot trade.
Professional consultant answers
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Vietnam doesn't completely refrain from entrepot trade, but the scale is relatively small. There are mainly the following reasons. Firstly, the port infrastructure needs to be improved. Entrepot trade relies on efficient ports. For example, the Port of Singapore has advanced equipment and strong handling capacity. However, the loading and unloading efficiency of some ports in Vietnam is low, and the storage capacity is limited, which affects the rapid transshipment of goods. Secondly, the logistics distribution system is not sound enough. Entrepot trade requires that goods can be delivered to the destination in a timely and accurate manner. The integration of domestic logistics information in Vietnam is insufficient, and the transportation route planning is not good, which increases the transit time and cost of goods. Thirdly, the financial services are not mature enough. Entrepot trade involves financial services such as fund settlement and trade financing. The financial market in Singapore is developed and can provide diverse financial products. The financial services in Vietnam are relatively single, which restricts the development of entrepot trade. Fourthly, there is a lack of mature supporting trade services. For example, professional customs declaration, freight forwarding and other services are not perfect, which affects the enthusiasm of enterprises to carry out entrepot trade.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
The manufacturing industry in Vietnam is developing rapidly, and it is more inclined to directly export its own manufactured products to build its own brand and enhance its international competitiveness, paying insufficient attention to entrepot trade.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
In terms of trade policies, Vietnam focuses more on signing free trade agreements with various countries to promote the export of its own products, providing insufficient policy support for entrepot trade.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The shortage of talents is also an aspect. Entrepot trade requires professionals who are familiar with international trade rules, logistics operations and other aspects. Vietnam is relatively lacking in talent reserves in this regard.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Although Vietnam has geographical advantages, neighboring countries such as Thailand and Malaysia are also developing entrepot trade, and the competition is fierce, making it difficult for Vietnam to stand out.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
The domestic market in Vietnam is constantly expanding, and enterprises are more concerned about the domestic market demand, giving priority to investing resources in the development of the domestic market and having no time to take care of entrepot trade.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
The level of information and communication technology in Vietnam has a gap compared with that of developed entrepot trade areas, affecting the efficient transmission and processing of trade information.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Some Vietnamese enterprises have insufficient understanding of the profit model and operation process of entrepot trade and dare not easily get involved.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
The tax policies in Vietnam are not attractive enough for entrepot trade, with few relevant tax incentives, increasing the costs of enterprises.