TRADE FACILITATION & CROSS BORDER TRADE AMONG VIETNAM, CAMBODIA AND THAILAND. Presented by Mr. Le Duy Hiep, Vice President of VIFFAS

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1 TRADE FACILITATION & CROSS BORDER TRADE AMONG VIETNAM, CAMBODIA AND THAILAND Presented by Mr. Le Duy Hiep, Vice President of VIFFAS

2 Vietnam Geographical Overview Region: Southeast Asia Vietnam shares border with: -Laos, Cambodia on the west -China on the north Coastline: 3,444 km Land area: 325,360 sq km

3 Vietnam Statistics Key Statistics Population (mil.) GDP Growth 6.78% 6% Export Turnover Growth 25.5% (71.6 b) 34% ( 97 b ) Import Turnover Growth 18.4% (82.8 b ) 26% ( 106 b ) Retail Sales of Goods & Services Growth (excluding inflation) 24.2% 25.2% Realized FDI (US$ billion) 18.5 billion USD 14.7 Billion USD Average Consumer Price Increase 11.4% 18%

4 ASEAN Framework Agreement on Facilitation of Interstate Transport, 2009 Grant of Right of interstate transport of 500 vehicles Right to load & discharge goods coming from or destined for other ASEAN countries

5 GMS (Great Mekong Sub-region) Cross-border Transport Agreement, 1999 o Coverage: Cambodia, China, Lao PDR, Myanmar, Thailand and Viet Nam o Scope: road, multimodal transport related to road o Scope: cargo and passengers

6 Cross border Map VN-Cambodia- Thailand

7 Cross Border Transportation Development Strategy The 4 corridors for road freight/cross Border 1. South China Vietnam 2. Central Vietnam Laos Thailand 3. South Vietnam Cambodia Thailand 4. Singapore / Malaysia Thailand Vietnam / Laos south China

8

9 3 rd Corridor: South VN KH TH Cross-Border HCM City Phnom Penh Bangkok Transportation from Vietnam to Cambodia via border Moc Bai Bavet Transportation from Cambodia to Thailand via border Poipet Containers transferred at borders

10 Bilateral Agreement Agreement on the transit of goods between The Government of The Kingdom of Cambodia and The Government of The Socialist Republic of Vietnam, 2000, for transit shall be permitted to go through the following entry / exit border gates: Vietnam Cambodia Vinh Xuong (An Giang Prov.) Kaam Samnor (Kandal, Prey Veng) Moc Bai (Tay Ninh) Highway No. 22A Bavet (Svay Rieng) Highway No. 1 Xa Mat (Tay Ninh) Highway No. 22B Trapeang Phlong (Kg Cham) Highway No. 7 Bu Porang (Dak Lak) Highway No. 14 O Rang (Mundolkiri) Highway No. 14 Le Thanh (Gia Lai) Highway No. 19 Angdaung Pich (Ratanak Kiri) HW No. 19 Bonue (Binh Phuoc) Highway No 13 Snuol (Kratie) - Highway No. 13 Tinh Bien (An Giang) Highway No. 2 Phnom Den (Takeo) Highway No. 2 Xa Xia (Kien Giang) Highway No. 17 Lork (Campot) Highway No. 17 Agreement between The Government of The Kingdom of Cambodia and The Government of The Socialist Republic of Vietnam on Road Transport, 2009, accepted for through-way transportation between two countries.

11 Current situation of cross border via Moc Bai/ Bavet Check Point Both government accepted for each side 200 Vehicles ( Including passenger coaches ) moving interstate from Daily moving from/to each country : Not Yet Updated but app. 600 TEU per week. Containerized cargo : 90% Market practice : still prefer changing truck head & chassis at Point Zero. Almost truck are installed GPS Cargo including : Transit containers for Ex. Cambodia to USA to be loaded at Cai Mep Deep Sea Port, Imported cargo by sea freight to Cambodia via Hochiminh City port, Import Air cargo to PNH via Tan Son Nhat Airport, Export Air Cargo from Cambodia to the world via Tan Son Nhat Airport by Land-Air Service, trading cargo exchange between VN and Cambodia & vice versa.

12 Interstate Road Feeder Service ( RFS ) This is new concept for transport air cargo for the Airlines which has been utilized in European countries & normally at the small size airport. Pochentong Airport is unable to receive Freighter or big Aircraft therefore export air cargo with large volume or oversize needed to move to Hochiminh City Airport for upload into bigger aircraft/freighters. Import Air cargo to Cambodia mostly so far destined to HCM then move to Cambodia by road freight. By RFS, import air cargo can be destined to Phnompenh with through airway bill of lading. This new service created by Vietnamese Logistics Providers (Transimex-Saigon & Vector Aviation) and a Cambodian Transporter (Teng Lay Import Export Transport) Facilitation: high security trucking services at both side, transhipment container depot at Bavet Check Point, GPS system, EDI, well operation & handling services at both sides, bonded warehouse at Phnompenh.

13 Interstate Road Feeder Service Map

14 Interstate Road Feeder Service ( cont.) New service commencing by October Air cargo volume estimated between Cambodia & Vietnam as 40 x 40 / Week Can be using for air cargo upload at Bangkok using Poipet Check Point with the same manner operation. Airway Bill of Lading in this case can be issued at Phnom Penh (RFS Bonded Warehouse). This service can be served for off-line airlines at Cambodia

15 Interstate Road Feeder Service (cont.)

16 Cross Border Service Characteristics Quality parameters - Door-To-Door service - Exclusive Truck for short & reliable - transit time (FTL: Full Truck Load) - Door-To-Door service - Frequency: as requested by the customer - GPS-equipped trucks to ensure stable & safe trucking of goods Services Included - Pictures for border operation by EDI - Daily track and trace - Customs declaration - Manual for documentation and preparation Value added Services - GPS for truck - Pre carriage and on forwarding - Additional insurance - Storage - Private security guard Services Position: Lower rates than AFR and shorter lead time than OFR

17 GENERAL BENEFITS OF CROSS-BORDER TRUCKING Cost savings Cost is considerably lower than standard international Air Freight Lead time reduction Transit time is shorter than Ocean Freight Flexibility Extensive network and product offers, not only stand-alone trucking services but also multi-modal solutions (i.e. Road-Air). FTL (Full Truck Load) provides an exclusive service from shipper to consignee with a competitive price, reliable transit time and maximum flexibility. Simplicity: Door-to-door service including direct pick-up and delivery, customs clearance. Value adds service can be designed to fit customer need. Security: safeguard the cargo with GPS-equipped trucks. High security standards along the transit with well equipped facilities. Full shipment visibility.

18 Cross Border outstanding matters Lack of a unification of customs join-inspection rules between Vietnam, Cambodia & Thailand. The current formalities for customs clearance is still complicated. Niek Loung Bridge is still not under construction yet Using Niek Loung Ferry make transit time longer ( 12 hours ). Lack of facilities at check point ( Transit Depot, lifting facilities, consolidation warehouse ) Market practice still choose the solution of changing prime movers & chassis at Border Check Point due to owned traffic regulation of each sides while the best standard model is interstate moving without changing local prime movers / chassis.

19 Bavet Check Point ( Cambodia )

20 Bavet Immigration Check Point

21 Container truck waiting for clearance at Ba Vet Check Point

22 TENG LAY Transit Depot at Ba Vet Check Point

23 Container Depot at Transit Point

24 Off-dock Air Cargo terminal ( bonded ) in Phnompenh

25 Off-dock bonded Air cargo Terminal ( using for interstate Road Feeder SVC)

26 Thank You for your attention

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