Vietnam plans for bonded warehouses abroad

The Vietnam Development Bank (VDB), together with nearly 20 leading export companies of Vietnam, will submit a plan to the Government to construct a bonded warehouse abroad for Vietnamese commodities.

General Director of VDB Nguyen Quang Dung released the information and said that the plan has been thoroughly discussed by the bank and exporters.

He explained that bonded warehouses abroad would create more favorable conditions for Vietnamese enterprises to boost exports. Bonded warehouses save on expenses like storage and other procedures. Most importantly, commodities will be available to sell when prices are good.

If the plan is approved, the US will be the first market where VDB and exporters will set up a bonded warehouse.

Dung admitted that setting up bonded warehouses is difficult due to capital needs, the investment mechanism and management. Since bonded warehouses, can be considered “specific territories” in foreign countries, they need a specific mechanism for their operation and support from many branches and ministries.

A proposal to build a bonded warehouse in Europe caused the Prime Minister to establish a research team to find suitable locations and calculate investment costs. No information about the research has been released to date.

VietNamNet Bridge

Tags: Vietnam exports

Posted by VBN on Dec 7 2009. Filed under HEADLINES, Import-Export. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry