Significant benefits in exporting agricultural products by rail

Imports and exports are transported by rail. Photo: VNR

Transportation of goods by rail is always smooth

In order to take advantage of goods transportation by rail, the General Department of Vietnam Customs said that the export of agricultural products by rail should be promoted.

According to the General Department of Vietnam Customs, from the beginning of 2020, due to the impact of the Covid-19 epidemic, the application of epidemic prevention measures by countries has affected the global supply chain, leading to the congestion of goods transported by sea and land, and the increase in the freight cost.

Due to the Chinese Government's application of the "zero covid" policy with strict Covid-19 prevention measures, the circulation of goods, vehicles and people across the Northern border area faces difficulty. As a result, thousands of transport vehicles carrying import and export goods were congested at border areas on both sides, causing significant damage to businesses.

The Government, ministries and sectors have made great efforts to facilitate trade and promote customs clearance, especially agricultural products. However, these solutions have not yet removed problems.

After the Lunar New Year 2022, the volume of imports and exports across the North Border Gates has dropped. This is because the quantity of cleared goods across the borders has been disrupted due to the Chinese Government's application of Covid-19 prevention and control measures.

Meanwhile, goods transportation by rail is always smooth, less affected by the epidemic, and has lower transportation costs than other transport methods.

Therefore, businesses tend to choose the form of transport of import and export goods by international rail. This is the inevitable trend.

Infrastructure must meet transport requirements

Currently, the Customs sector has implemented e-customs procedures and equipped sufficient conditions, facilities, equipment, and human resources to implement quick customs procedures by rail, ensuring the customs inspection and supervision of imported and exported goods.

However, the Ministry of Finance and the General Department of Vietnam Customs, the transportation capacity, loading and unloading of goods and infrastructure at the station have not met the increasing trend of transporting import and export goods by rail.

Therefore, it is necessary to invest in railway infrastructure to meet the increasing demand for goods transport in the market; take advantage of this transportation method to reduce logistics costs and increase the circulation of goods by international rail transport.

On May 23, the Ministry of Finance issued Official Letter 4612/BTC-TCHQ to propose that the Ministry of Transport provide solutions to improve the capacity and efficiency of transportation by rail.

The Ministry of Finance proposed Ministry of Transport quickly upgrade and invest in infrastructure at railway stations and yards at Dong Dang International Railway Station and Yen Vien International Railway Station, such as expanding the storage area, building fences, installing camera systems, barriers, electronic scales, warehouses for inspection and storage of infringing goods, and equipping power generation for freight trains.

Submitting to the competent agencies to upgrade Kep Station of Bac Giang province to become an international railway terminal to meet the increased demand in international transportation by rail and effectively make use of the strengths of the railway industry.

They are promoting the socialization of the railway transport business as prescribed in Article 5 of the Law on Railway, allowing units outside the Vietnam Railway Corporation to operate rail transport to increase competitiveness, productivity and efficiency in railway exploitation and transport.

Applying information technology systems in receiving and exchanging data on goods and means of transport between Vietnam and China international railway stations under the Protocol of the 43rd Vietnam - China Border Railway Conference on November 28, 2019; meeting requirements on providing online advance information of goods, vehicles and people on exit and entry in the documents declared to the customs, border guard, health and quarantine authorities to improve the efficiency of customs clearance goods and means of transport.

The Ministry of Finance will coordinate with the Ministry of Transport and relevant ministries and branches to organize the apparatus and arrange forces to carry out customs procedures, inspect, supervise and control import and export goods and improve the efficiency of operation and customs clearance of import and export goods and means of transport at international railway terminals. Thereby limit ing risks, ensuring export and import activities, and solving congestion at land border gates when the epidemic still occurs and the Chinese side still closes the border.