Tóm tắt Luận án Development of city logistics system in Hanoi

ction, distribution and consumption of the products as well as all their economic connections within the city. With this approach, each enterprise is considered as an element of the city logistics system and consequently, an efficient city logistics system will be a key factor ensuring the smooth operation and stable development of enterprises in Hanoi. Therefore, in the scope of this thesis, the researcher believes that: “City logistics system is a combination of elements involved in the planning, implementation and monitoring of the effectiveness of the transports of people, goods and related information within the city which includes legal mechanism, infrastructure, human resource and logistics service providers and consumers as well as the interactive relationship between them”. 1.2.2. Content of the development of city logistics system 1.2.2.1. The sustainable development of city logistics system The sustainable development of city logistics system is the city logistics system development which is made in the form of “green logistics system” and it means that all processes and elements of those processes are developed with a view to minimizing impacts on the environment and energy of the freight distribution and transport. 1.2.2.2 Content of the development of city logistics system The development of city logistics system is the development of the entire system including the following components: mechanism, logistics development policies, logistics infrastructure, logistics services providers and consumers and logistics human resource in the dialectic interactions of the development heading towards the socio-economic development of the city. Therefore, city logistics system development should be implemented both extensively and intensively. - An extensive city logistics system development is the development that is implemented based on the expansion of quantity, size and capacity of the logistics market, increased market share of logistics enterprises on the total market size, the expansion of warehouses, logistics centers; strengthened connections between different areas, different firms and means of transportation; increasing number of firms using logistics service as well as logistics human resource within city limits. - Intensive city logistics system development is the synchronous and modern development of the city infrastructure based on the application of advanced information technology system to enhance operational efficiency and effectiveness, increase the number of logistics services with high added value to raise revenue and fully exploit the potential and advantages of Hanoi. Besides, intensive city logistics system development is also the continuous improvement of mechanism and policies of logistics development to match the socio-economic context of the city with a view to build an equal business environment; promote training of high quality human resource 1.2.3. Assessment indicators for the development of city logistics system Based on the analysis of the importance, characteristics and components of city logistics system, indicators for the development of city logistics systems may include: (i) Set of indicators for economic situation; (ii) Set of indicators for logistics income and volume of logistics;(iii) Set of indicators for logistics human resource; (iv) Set of indicators for logistics infrastructure; (v) Set of indicators for logistics information infrastructure; (vi) Set of indicators for the attraction of foreign direct investment;(vii) Set of indicators for the training and education, science and technology; (viii) Set of indicators for urban policy environment; (ix) Set of indicators for living environment. The assessment of city logistics system development is a complicated issue and involves many different objects. It is necessary to base on the research objectives and subjects to use appropriate indicators and assessment methods that facilitates the practical application. 1.3. FACTORS AFFECTING THE DEVELOPMENT OF CITY LOGISTICS SYSTEM City logistics system is a very complex system influenced by many factors which have complicated mutual interactions. Based on above analysis, it can be seen that factors affecting the development of city logistics system can be divided into two main groups: (i) Group of factors reflecting the ability to develop city logistics; (ii) Group of factors reflecting the development environment of city logistics. 1.4. EXPERIENCE IN CITY LOGISTICS SYSTEM DEVELOPMENT OF SOME CITIES IN THE WORLD AND LESSONS LEARNED FOR HANOI 1.4.1. Experience in city logistics system development of some cities in the world 1.4.1.1. Experience in city logistics system development of SEZ Hongkong - China Hongkong is a developed capitalist economy built on a market economy with little economic interventions from the government. Logistics is one of four key economic industries in Hongkong, contributing 25.5% of total GDP of the city and creating jobs for numerous people with over 300 logistics enterprises. In order to achieve such a huge success, apart from the highly qualified, experienced and professional human resourse, Hongkong possesses a world-class infrastructure which is integrated with highly specialized services enabling Hongkong to become the most favourited logistics center in Asian region and over the world- Transportation network in Hongkong is very sophisticated and highly-developed including both public and private transportation network. There are various types of means of transportation in Hongkong to satisfy all travel need of consumers such as bus, taxi and subway... The facility is frequently upgraded and advanced information technology system is applied to improve the operation efficiency to meet every demand of the citizens. Moreover, Hongkong gives a special priority to the development of aviation. Currently, Hongkong International Airport (HKIA) is one of the best and the busiest airports in the world with over 100 airlines operating, 7.000 flights per week and nowadays, HKIA can be connected to 170 areas and territories in the world. Thus, HKIA is the airport with the cargo volume estimated around 4.040 thousand tons. Hongkong is one of the territories that remains the private sector to invest, operate and exploit end systems while the government focuses on the provision of essential infrastructure to serve the port as well as set out strategies for developing the port at the macro level. To maintain its position as one of the largest container terminals in the world, exploiters frequently invest to upgrade facilities and improve system to enhance quality and operational capacity. 1.4.1.2. Experience in developing city logistics system of Tokyo - Japan Nowadays, Tokyo is one of a few cities all over the world which has developed a modern, diversified and world-class public transportation infrastructure. Almost every main roads are en routed from Tokyo to all regions and cities of Japan. This system includes tramway, metro, tram, bus and one-rail train. So Tokyo distribution network can connect all form of transport such as roadway, waterway, railway and airway. Besides, Tokyo has a worldwide famous container port with infrastructure system with modern facilities which can connect to all transport routes in the region and all over the world. So, Tokyo Port runs as a main distribution center which supports the development of various industries and the human life in urban areas. Moreover, in order to be considered as one of cities with the most developed city logistics systems in the world, the Japanese Government plays a crutial role in setting out strategies, establishing mechanism, creating environment for general logistics and city logistics system.. 1.4.1.3. Experience in developing city logistics system of Singapore Singapore government has identified and chosen path of development based on the strengths of the ports, the existing commercial capacity. Along with issuing appropriate policies and mechanism for each phase of economic growth, the open market to attract investment and foreign brainpower has become a national policy of Singapore. Therefore, Singapore government has invested in building a transportation infrastructure system which is perfectly capable of combining all forms of transports. Besides, Singapore government and enterprises promote the application of sophisticated Intelligent Transport system (ITS), the advanced technology in all stages in order to improve the productivity and operational performance. 1.4.2. Lessons for Hanoi in developing city logistics system Through the research on the process of and experience in developing city logistics system of major cities in the region and in the world, a number of lessons can be drawn for the formulation and development of city logistics system within Hanoi and in our country as follows: - Propagation and changing perceptions of the role, importance and benefits of developing the city logistics system for the city 's economy; - The city government must play a pivotal role in developing strategies and plans for developing the city logistics system; - Creating a synchronous and unified legal framework for city logistics services, particularly the construction and development of city logistics system towards a stable and long-term development; - Establish logistics centers and distribution center in sync with the scale and long-term vision and have an uninterrupted connection between waterway transports, railways, road transports and air transport in the direction of multi-modal and environment-friendly transports; - The development of city logistics infrastructure system encourages private enterprises and foreign enterprises which have financial resources to invest in, to build and exploit the system. Construct airways, inland waterways infrastructure, road infrastructure and modern information technology in order to create favorable conditions for the development of city logistics system; - Enhance the training and re-training of logistics personnel, open logistics specialized training in universities and colleges in the city; - Widely apply the achievements of advanced and modern information technology in the operation of logistics services in the city; - Promoting the role of the Association, particularly the Association of forwarders in proposing initiatives to develop city logistics system. CHAPTER 2: DEVELOPMENT STATUS OF CITY LOGISTICS SYSTEM IN HANOI 2.1. THE CHARACTERISTICS OF HANOI’S NATURAL, ECONOMY, SOCIAL CAN AFFECT THE LOGISTICS OPERATIONS IN THE CITY 2.1.1. The natural conditions By the end of 2013, Hanoi's population is 7128.3 thousand people and 3324.92 km wide, consists of 12 districts, 1 town and 18 outer districts, topping the country in the natural area, the second largest urban area and population. Hanoi is one of the 17 biggest capitals in the world. Hanoi City is surrounded by the Red River in the north and east, by the To Lich River and Kim Nguu River (a feeder of To River) in the west and south. Therefore, the traffic between Hanoi and other local cities is easy, convenient, Hanoi became the transport connecting point with road, rail , air and river that spill over into other areas of the country and abroad. 2.1.2. Socio - Economic conditions Hanoi is a political, economic and culture centre of the country.In term of economic growth rate, Hanoi goes beyond a lot of cities all over the countries, just behind Hochiminh City.. In all conditions, Hanoi still maintain a constantly high economic growth rate, about 1.26 – 1.5 times more than other cities in the country. In addition, Hanoi is also an important transport connecting point of the country in general and the Red River Delta in particular. All important roads and railway lines head to Hanoi. Besides, Hanoi also plays an important role in development cooperation program "two economic corridors" of Vietnam - China. Hanoi is a bridge to promote trade cooperation, economic exchanges not only between Vietnam and China but also between China and ASEAN countries . 2.2. ANALYSING THE DEVELOPMENY STATUS OF CITY LOGISTICS SYSTEM IN HANOI IN THE RECENT YEARS 2.2.1. Development status of legal mechanisms Basically, the legal and institutional framework of logistics adjusts the activities related to the logistics sector is relatively complete, especially in recent times, it has added more normative act as planning, strategy development related to logistics services for the period of 2020, vision to 2030. All policy documents, legislation has partly reflected policies and views of the Party and State of creating favorable environment for city logistics system development. However, in an overall assessment, the legal framework for logistics city is incomplete, inconsistent and administrative burdens are still complicated and cumbersome. The oriented role of state in development of logistics sector in general and cities logistics in particular is unclear, some laws about logistics now no longer relevant to the real situation, lack of updating the necessary institutions in the field of international logistics. So logistics service market still lacks transparency, unhealthy competition, not to facilitate the sustainable development of the sector 2.2.2. Development status of Infrastructure 2.2.2.1. Road system Infrastructure of road traffic in Hanoi in recent years has changed in a positive direction, conducive to the development of the city economy. Overall, highways and expressways in the province was formed and allocated reasonably, create the connection with the entire road network in the province as well as other areas of the country. However, road traffic in Hanoi is under a great pressure of the increase in transport demand, population density and personal vehicles. The imbalance in population density between urban areas and the suburbs has led to overcrowding in many areas, traffic jam in many roads, urgent public opinion, bad urban landscape. 2.2.2.2. Railways system Hanoi’s railway transportation system is important in the transport of goods and passengers, is linked to almost every region in Vietnam. In recent years, the railroad has collaborated with the Ministry of Transport to improve and upgrade the rail system in order to improve capacity, ensure safety and make time on routes shorter. However, the railway infrastructure was old, backward, have not been modernized, many route across the railway lack of barricades, warning lights; workforce is quite large but low labor productivity; the situation of transgress secure corridor of rail transport still occurs frequently. 2.2.2.3. Waterways Hanoi has a large river system which is favorable for the development of water transport with 9 large and small river passing in a total length of about 400km and a major river port number. Despite of such favorable water transportation system, Hanoi has just exploited a very small portion of transport potential. Because the port network of the inland waterways in the northern region in general and Hanoi in particular mostly built between the years 70-80 of the last century so the tonnage of fleet is not remarkable, equipments and port services are weak, there are still a lot of black spots that reduce throughput capacity and create unsafe transport. 2.2.2.4. Air system In recent years, the aviation sector in Vietnam in general and in Hanoi in particular has been constantly evolving both in quantity and quality is becoming an important economic sector of the country, contributing to economic - social development and industrialization - modernization of the country. However, most Vietnamese airline routes were stopped in China, Korea, Singapore or Taiwan so transport capacity is often limited, especially at the end of the month. In addition, international cargo airline of Vietnam has only been done on the basis of combined with passenger carrying as well as cooperation contract so transport volumes are not large. Despite the promising development in the present and the future, but the current air transportation in Hanoi still faces many difficulties and limitations. 2.2.2.5. Infrastructure of warehouses, wharves Warehouse system in Hanoi is small with discrete scale, low quality. No considerable logistics centers in the area have been built to connect forms of transportation with transport vehicles. 2.2.2.6. Information infrastructure In recent years, the application of modern information technology in the economic activities, cultural, social of people, businesses, and local authorities in Hanoi have been changed a lot in a positive direction. Many LSP in Hanoi have also started the application software to monitor and control the process of goods transportation in order to promptly report the progress, timing and schedule transportation for guest row upon request. However, the application of information and communication technologies on business operations of enterprises Vietnam is still weak in comparison with the international level, lack of utility and interaction needed by customer as the order tracking tool, track train scheduling, tracking documents... On the other hand, transport is backward, mechanization level in cargo handling remains weak, manual labor is still common. Storage is relatively backward, not commonly applied computerization in administration such as barcodes or warehouse software management programs. 2.2.3. Development of Logistics Service Providers (LSP) New economic environment, the expansion of international trade cooperation has led to the operation of the Vietnamese economic in general as well as in Hanoi became vibrant and bustling. To meet the amount of import and export goods are on the increase, in recent years, a number of LSP were launched. Although there are no official statistics, but today in Hanoi there are about 450-500 LSP operating in the logistics sector. There are tens of thousands of businesses in the city which are related to logistics field. Hanoi businesses are not only forwarders and shippers but also do all the work of storage, labeling, packaging and customs clearance... However, most LSP are small and software applications and information technology is not common, that lead to poor competitiveness. Therefore, LSP in Vietnam in general and Hanoi in particular is still largely act as "satellite" for foreign LSP, only to take on some stages in the chain of logistics activities such as customs procedures, rental vehicles, warehousing. 2.2.3.1. Development status of transport services The most popular logistics services in Hanoi is transport services that accounts for about 60-70% of the total revenue of the general logistics services. Number of vehicles and cargo volume increased rapidly in recent years. Therefore, transport capacity in Hanoi is constantly rising to meet the transportation needs of businesses. Road transport: This is the main form of transport in Hanoi. However, there are still many shortcomings in this form of transport such as: the low ability to maintain and develop the roads, the roads are not designed for containers, old specialized truck teams, many roads have been downgraded and are not connected completely. Rail transport: This transport has many advantages compared to some other mode of transports. However, the rate is still very low in both freight and passenger transported by railway line as transport capacity is not being utilized effectively, the infrastructure of the railway sector has outdated, slow to improve. Waterway transport: Cost of water transport is lower than other modes of transport and large amounts of goods can be carried. However, there are still many shortcomings in this form. Many inland waterways in the city have not been dredged, rivers are filled up, that make the medium -sized vessel can hardly move. In particular, many waterways are not navigable for ship to pass through. Air transport: the safe, common and convenient mode of transport, associated with air transport market in the world as well as the region. Until now, many famous airlines have already plans to open new international routes, leads to the higher rate of air transport from/to Hanoi. However, at present, the proportion of goods transported by air is still a modest figure due to the high cost and limited material facilities. Also, Hanoi does not have routes as well as specialized planes. 2.2.3.2. Development status of goods distribution services The system of goods distribution in the wholesale and retail market in particular achieved many important accomplishments. The economic sectors involved in the network of wholesale and retail trade, various commodities are more diverse and richer, better satisfy the needs of consumers. Besides the type of traditional wholesale and retail, the forms of modern wholesale and retail has been growing strongly in the city. Commercial infrastructure in Ha Noi is constantly invested and expanded. On May 8/2013 , there are about 25 commercial centers, 121 supermarket and 414 large and small markets. Goods distribution services in Hanoi have developed in a high speed, in general retail distribution system in the province is still fragmented due to various small types of sale and retail traders, not organized into the system; large number of supermarkets, but the distribution is uneven. There are very few distributors are strong enough to control and dominate the market. There is no tight linkage between production and imports and consumers; ability to control the price of firms is weak. 2.2.3.3. Development status of merchandise exchange services Service delivery in the city takes place primarily in the center of circulation such as airports, train stations, river ports, dry ports... Delivery demand becomes necessary in the economic growth in Hanoi. This is shown through the increase of the number of firms operating in the sector of transportation as well as the volume of freight traffic on the city over the years with an average growth rate of about 6.3% annually. 2.2.3.4. Development status of customs services The past year, Hanoi Customs Department has developed and implemented numerous plans and reform programs to gradually renovate and modernize customs procedures, immediately focus on investing modern equipments , step by step application of modern information technology in the working stages of customs operations with research, improving customs procedures to shorten customs clearance time, create an favorable environment, while ensuring strict management requirements for import and export activities, attracting foreign investment in the city. However, the effectiveness of the reform process of custom procedures is still very limited and the process is still too slow in comparison with the trends as well as general development requirements of the region and the world. 2.2.3.5. Development status of warehouse services Warehousing services in the city of Hanoi today is quite diverse, including storage dealers and rental service; bonded warehousing services; service containers, container formats storage services ... Over the years, the storage services incessantly grows. Whether achieving good growth but in general, transportation services, warehousing services still play a very modest proportion (approximately 6% /year) in the overall GDP of Hanoi, not yet demonstrated their role in the economic development of the city. There are still many shortcomings in warehousing services, such as lack of professionalism in the delivery, warehouse layout system is not fair, most of the storage system at the port in Hanoi was built a long time ago so the quality of warehouse is downgraded, obsolete, warehouse management is not applied the techniques of modern science. 2.2.3.6. Development status of other services: In addition to the services mentioned above, in today's world, the logistics company also provides a number of support services such as quarantine, inspection, cargo insurance, purchase protection, packaging, packaged goods, purchasing insurance for goods ... on behalf of customers (if required) . By such specialization, the production enterprises, the business will save a lot of cost and time to focus on the production of their own. 2.2.4. Development status of enterprise using logistics services With the advantage of the national second - largest center of economy and the largest country in the North, Hanoi has a leading role in organizing the circulation of goods in the north and the country. According to the statistics of Hanoi, the total value of production of all economic sectors in Ha Noi constantly is increasing over the years, the total volume of freight traffic in Ha Noi increased, demand of transportation, forwarding and logistics are widespread. It can be seen that demand of outsourced logistics services in Ha Noi is although potential but still modest: 29.5% enterprises not wishing to outsource logistics services as the main business activity of the company is not in need of logistics service, 29.5 % said businesses do not use logistics services is due to not trust the quality of services and businesses take 61.1 % said that they were able to self- perform the logistics services. 2.2.5. Current status of logistics human resource The strong growth of the global logistics sector shows that skilled manpower is extremely important factors for the development of logistics services effectively. Human resources for city logistics services are still limited in both quantity and quality. Most people who participate in city logistics businesses today are lack of knowledge, is not equipped with the business skills in this particular type. 2.3. OVERALL ASSESSMENT OF DEVELOPMENT STATUS OF CITY LOGISTICS SYSTEMS IN HANOI 2.3.1. The results of the city logistics system development - Important contribution, promote the development of production and trade, improve the efficiency of development and international economic integration of the city. - Enhance economic - social efficiency of the city and transformation of growth pattern and creation of favorable conditions for the production, circulation and distribution of goods. - Contribute a large share of the GDP growth of Hanoi. - Facilitate the process of circulation, distribution to be transparent, accurate and secure, reduce transportation costs, social costs, so that goods are brought to market quickly, consumers can buy goods at more convenience and flexibility. A team of dynamic, large logistics human resources is formed initially, gradually adapting to the market economy, professional qualifications are rising day by day. Achieve breakthrough results in the reform of administrative procedures. The number and types of administrative paperwork as well as the time of receiving, processing of several city agencies, such as tax, customs, environment... is simplified greatly. The customs clearance of businesses have become convenient, fast, helps businesses save time, effort and money, thereby supporting to boost business activities of enterprises with foreign partners. Establish a legal framework is relatively sufficient to create comfortable environment for city logistics system development. And especially, recently government and the city government have added more normative acts to promote the development of city logistics system. Over the past year, Hanoi authorities co-operated with the Ministry of Transport have extremely interested in city logistics system through enhanced synchronous development, continuous transportation infrastructure for all modes of transport. 2.3.2. Limitation of the city logistics system development City logistics is still consistent with forwarding activities, traditional transport and outsourced city logistics has yet to become a habit of businesses. Lack of connection between import-export businesses and LSP. LSP in area only provide traditional services, single, primarily operate as agent for the foreign corporations. Business situation in a "grab" unfair competition still regularly occur, creating a bad precedent for foreign firms. Other costs such as administrative costs, paperwork, loading and unloading costs are high... Lack of coordination between transports has increased the number of vehicles in traffic, causing traffic jams, impede the development of cargo distribution and circulation systems in the area. Environmental pollution is becoming serious - The shortage and weakness of human resources also impact negatively on the business activities in Hanoi. Currently, the city logistics enterprises were used to recruit human resources from the input and self-training after recruitment but hardly received any training assistance from the government, the municipal government. Intelligent Transport System, the software of modern technology... have not been applied commonly or applied but not often. 2.3.3. The cause of the limitations The system of legal mechanisms is asynchronous and Hanoi does not have a specific policy mechanism to the development of logistics in general and city logistics system in particular. Ability to mobilize the investment resources for city logistics development remains low, especially in the logistics infrastructure of the city, the type of logistics services in the city grow slowly, low competitiveness and costs are high. The potential of the Hanoi business enterprises in the logistics sector is limited, mainly 2PL logistics enterprises. Most of the freight forwarding companies in the city are small and medium -scale. Limited cooperative, association, and funds lead to the limited potential of city logistics system development. Many agencies, regulators, businesses are not fully aware of the importance of the city logistics system development for the local economy as well as the country. Qualifications of logistics services human resources as well as city servants mostly fail to meet requirements. Their knowledge of the market and city logistics is limited and not professional. The training of logistics human resource has not been cared. There is no specialized logistics department in universities. The development of logistics sector in the city has not received proper attention. The protection of the environment from the improvement of efficiency in exploiting logistics infrastructure, the establish of logistics center to connect all means of transport to the construction of city highways as well as the technical policies and standards are not fully focused. Many exporters are still holding FOB practices. Import sector is an opportunity for LSP when importers buy FOB. However, much of this pie has been in the hands of foreign LSP by most importers are FDI firms. The system of logistics infrastructure in the city is inconsistent and underdeveloped. Although there has been a certain renovation and upgrade but it can be clearly seen that the traffic infrastructure in the city is poor, technical standards are low and outdated. The impact of the economy in the world and the region, the unpredictable fluctuations of market of goods and services over time also profoundly influenced the development of Hanoi logistics system. CHAPTER 3: SOLUTIONS TO THE CITY LOGISTICS SYSTEM DEVELOPMENT WITHIN HANOI IN THE NEAR FUTURE 3.1. OUTLOOK FOR THE SOCIO-ECONOMIC DEVELOPMENT OF HANOI TO 2030 WITH A VISION TO 2050 AND PERSPECTIVES, TARGETS AND ORIENTATIONS OF THE CITY LOGISTICS SYSTEM DEVELOPMENT WITHIN HANOI IN THE NEAR FUTURE 3.1.1. Outlook for the socio-economic development of Hanoi to 2030 and 2050 vision 3.1.2. Objectives, perspectives and orientations for the city logistic system development till 2030 and the vision to 2050 3.1.2.1 Development Perspective Consider city logistics as one of key infrastructure services with a lot of competitive advantages and the motivation for socio-economic development. Develop city logistics as an important economic sector that has many competitive advantages and the driving force of the socio-economic development. Develop a city logistics system with a modern and synchronous structure and ensuring the capacity for a large scale in terms of volume, space and time. Develop fast, stably and have a long-term vision of the city logistics system both in terms of economy, society and environment. The development of the city logistics system should be based on the participation of all economic sectors and industries and be consistent with the planning of the socio-economic development to promote the socio-economic development of regional and national economic corridors. Promote the widespread and effective application of advanced information technology and communication in the city logistics system to keep up with the development of the countries in the region and around the world. 3.1.2.2 Orientations for development - Transform Hanoi into one of three major logistics centers of the country and the region, reaching the international level and contributing positively to socio-economic development. - Develop focused proposals and programs to serve as the basis for the development of city logistics system according to the natural characteristics and socio-economic context of the city. - Propose solutions for the planning of transportation infrastructure development in a synchronous and continuous manner, improve legal framework, formulate a mechanism to attract investment from global and regional corporations. 3.1.2.3 Development goal by 2020 and 2030 vision In the coming years, developing the city logistics system to make logistics a key economic infrastructure sector as well as a main service sector will have significant contribution to the economic growth of the city 3.2. SOLUTION TO HANOI CITY LOGISTICS SYSTEMS DEVELOPMENT IN THE FUTURE 3.2.1. Remedy for policy mechanisms of city logistics system 3.2.1.1. Develop a master plan for development of city logistics system in Hanoi until 2030 and vision 2050 Constructing, developing, planning city logistics system in Hanoi to 2030 with a vision to 2050 is necessary and is a big job, requiring the involvement of many different sectors. In addition, the planning and construction of the smaller centers, which are connected with the city's beltway, focal consolidation, warehouse inventory at the regional industry center in Hanoi. Note the development of a dedicated storage as heat storage, cold storage. 3.2.1.2. Complete and specific the policies of the city logistics system development. Continue to put the law into operation of business practices and in order to achieve high efficiency, studying and learning from the big cities of the countries in the region and the world is necessary. However, referring to Hanoi, it is essential to consider the current situation of Hanoi to have appropriate application and avoid stereotyping, hastiness. Quickly develop measures and policies to encourage investment, cooperation and technology transfer, training the logistics staff to create advancing impetus of city logistics system, firstly specify the relevant legislation related to outsource logistics services, standardize service processes... - Early institutionalize 3PL outsourced logistics services to develop the city logistics services, there should be the policy of logistics sector development. 3.2.1.3. Establish interdisciplinary management offices of logistics city. Quickly establish state-level management offices of logistics services, it could be logistics management section or department in the Department of Industry and Trade. This agency is the bridge between the relevant sectors, between Vietnam Seaports Association and the Association of LSP with businesses located in the city. 3.2.2. Solutions to logistics infrastructure development in the city 3.2.2.1. Development and upgrading of infrastructure hardware * For river transport: (i) construction of river transport routes to connect with the sea routes, railways, motorways; (ii) rehabilitation, upgrading and widening and maintenance of canals; (iii) an appropriate system of river ports, inland wharves in critical areas; upgrading and modernization of port infrastructure and motorizing cargo handling systems; (iv) develop the fleet in a diversified direction, with reasonable structure to enhance the capacity of cargo through the port... * For rail transport: (i) the rehabilitation, upgrading and expansion of roads, development of civilization in service stations and ports of Hanoi; (ii) extend the rail line to the areas, the center of industrial and export processing zones...; (iii) investing in new vehicles such as locomotives, carriages, wagons especially specialized carriage for faster shipping and cost savings. * For air transport: (i) procurement of freighter airplanes, modern loading and unloading and shipping facilities; (ii) establish freight routes to destinations in need of goods shipped to and from Hanoi. * For road transport: (i) the improvement and expansion of existing routes up to 4 to 6 lane roads with motor vehicles; (ii) build the highway parallels the highway with heavy traffic; (iii) invest to upgrade, expand and build new axis of traffic, the interchange at the large intersection; (iv) investment in new construction and upgrading, renovating the bus station, park meet transportation needs in the locality; (v) the construction of new public transport route with large volumes as elevated railways and subways, bus ... When constructing and planning for transportation, it is necessary to take into account the inter- connection between modes of transport. In addition, the issue of minimizing the impact to environmental quality should focus as: (i) to plan a reasonable distance between the river ports, railway stations, yards and the surrounding residential areas and zoning buffer between the work of traffic and residential areas; (ii) promote the application of advanced information technology environment friendly as well as encouraging the use of cleaner vehicles or vehicles with clean fuel ... 3.2.2.2 . Upgrading of infrastructure software Municipal governments and LSP need to hasten the progress of completing a modern information system, a network of large databases should be established to operate as a bridge between the business community and LSP; increased use of EDI communications system for rapid implementation of the customs declaration procedures; investment in application of advanced IT software... 3.2.3 . Solutions to development of LSP in the city - Strengthening links between firms operating in the city. - Early formation and development of 3PL enterprises. - Improving the quality of service provided. - Diversify the supply of products and services, focusing on the development of value-added services. - Combining more multimodal transport route to reach the target of maximum cost savings and improve service quality. - Development and consolidation service pack, classification of goods for import-export businesses. - Provides inventory and distribution service to the correct received address. 3.2.4 . Solutions for the development of companies used logistics services in the city - Changing perceptions of the role and necessity of outsourcing logistics services by improving their competitiveness, reduce costs and increase profitability of the company. - Early production enterprises should promote outsourced warehousing and shipping services to save costs. However, businesses need to consider the capacity and credibility of the 3PL company that be selected. A professional unit, prestige will help businesses save costs while ensuring quality of work in the long term. At the same time, the import-export businesses need to use the services of agents of customs procedures will help ensure that work is always operational on time and quality assurance. A reputable professional enterprise will help businesses save costs while ensuring quality of work in the long term. At the same time, the import-export businesses need to use the services of agents of customs procedures to help ensure the progress of work and quality assurance. 3.2.5. Solutions to training human resources of city logistics system   (i) For the management team: Provide an opportunity for them to participate in advanced courses, intensive workshops on logistics, city logistics in the country and abroad to supplement the knowledge and grasp the opportunities, challenges and new developments trends related to the logistics sector in the region and the world. (ii) For professional staff: Provide an opportunity for them to participate in courses of foreign languages, legal systems of the countries in the world, the skills of applying information technology in daily activities ... In addition, business leaders should also have regular discussions with staff to grasp their needs and aspirations as well as guide employee through self-training to conform to the overall development objectives of the business. (iii) For direct workers: companies need to regularly organizes short training courses in professional skills in enterprise level in order to increase the understanding of the important processes in the chain of logistics services or matters directly related to their daily work. Finally, the city government should increase interest and support in building and policy-oriented, related to logistics and city logistics sector. Proposal to open the department of logistics, supply chain management, multi-modal transport ... in universities, colleges and trade economy. Moreover, content and training programs to should be updated regularly with international standards. 3.3. RECOMMENDATIONS OF PREREQUISITES FOR THE CITY LOGISTICS SYSTEM DEVELOPMENT 3.3.1. Recommendations for the Government - Government should create logistics development strategy of Vietnam until 2020, with a vision to 2030; establish the National Commission of Logistics: in order to develop and implement strategy of logistics sector, there should be a formal mechanism of logistics services management in Vietnam. - Completing the investment policy to develop the logistics infrastructure both "hardware" and "software". Promulgate policies to encourage investment and develop the city logistics system such as investment and development of logistics infrastructure, creating facilities for city logistics system. - The state should adopt policies to support and encourage private and enterprise investment and wide application of the PPP (Public Private Partnership) - The state should invest in research the logistics, logistics services in a systematic way, and disseminate deep and wide knowledge within the industry and businesses, avoiding not thoroughly understood, confusion leads to deviations, ineffective application. - There should be a solution to sustainably develop the Vietnam logistics market. 3.3.2. Recommendations for the Hanoi People's Committee - Support and create an transparent environment to synchronously develop the logistics services market and develop the business services. - Specify policies on development of logistics infrastructure in the city, especially in transportation infrastructure, distribution systems, cargo traffic . - There is should be investment and development policies of logistics enterprises, support for training and retraining of human resources in the field of business services. - The construction of infrastructure in the city such as the ring road system, urban roads and bridges in the province should be implemented promptly, connected by the logistics center in the region, ensuring the circulation of goods, reducing circulation costs for businesses and establishments to develop synchrously services, commercial civilization, urban services. 3.3.3. Recommendations for businesses - Strengthening coordination and links between businesses together. - Positive, proactive technological innovation, improve the competitiveness of logistics enterprises... In the short term, businesses should focus on promoting the image through building websites with more specific content. - The company also needs proper attention, perception of logistics services. - The businesses and sectors particular should be interested in training the high-quality human resources with deep understanding of regulations and laws within their country and abroad. CONCLUSION International economic integration has created both opportunities and challenges for city logistics system within Hanoi. This means that the city logistics firms should enhance their competitiveness to survive and develop in the new era. City logistics is regarded as one of the most important economic sectors which not only brings huge benefits to major urban areas but also plays a crucial role in improving the competitiveness of the nation and of the firms as well. Although possessing a huge potential, logistics firms established within Hanoi limits still have a limited capability which makes them difficult to capture and exploit the opportunities and overcome the obstacles and challenges to develop city logistics system, meeting the requirements of the global and regional economic integration. It is necessary for Hanoi to have a strategy to develop the city logistics system with appropriate policies and mechanism for the new development phase from 2014 to 2020 with a vision from 2030 to 2050 of the city. Simultaneously, implementing synchronous solutions and putting a due stress on the investment of city logistics system with a view to turn this service into infrastructure service is very essential to the development of the city. Thus, with the goals of developing the city logistics system within Hanoi, the thesis focuses on the following issues: Firstly, the thesis has systematizes and clarifies the rationale for city logistics and city logistics system development such as: concepts, characteristics, roles, content and assessment criteria of city logistics system development. Secondly, the thesis focuses on the experience of developing city logistics system in some major cities in the region and in the world such as Singapore, Hongkong, Tokyo to draw valuable lessons with the aim of developing city logistics system within Hanoi in the future. Thirdly, the thesis analyzes and evaluate fully and comprehensively the situation of city logistics systems within Hanoi from 2008 until now with all the elements taken into account. The analysis and evaluation of the thesis indicate that although city logistics have a high potential for developing, but citylogistics system within Hanoi is still relatively limited and has not fully contributed to the economic development of the city. Fourthly , on the basis of analyzing all factors that have an impact on the development of city logistics system and the prospect for the socio-economic development as well as the targets, perspective and city logistics system development orientation in the upcoming years, the thesis proposes a number of solutions to the development of city logistics system within Hanoi in the orientation towards the stable and long-term economic development of the city. LIST OF PUBLISHED RESEARCHING WORKS BY THE AUTHOR Dang Thi Thuy Hong (2014), "A number of solutions to the logistics system development within Hanoi”, Journal of Economics and Forecasting 13, pp. 45-47. Dang Thi Thuy Hong (2014), "Current status and solutions to logistics system development within Hanoi ", Journal of Commercial Research 9, pp. 20-24. Dang Thi Thuy Hong (2013), "Establishment and sustainable development of national logistics system”, Monograph: Construction and Development of Logistics System in our country, Labour and Social Publishing House, pp. 27 - 64. Dang Thi Thuy Hong (2013), "Solutions to the development of logistics infrastructure of Hanoi”, Proceedings of International Workshop – Mission of bilateral international cooperation, Labour and Social Publishing House, pp. 188 - 209. Dang Thi Thuy Hong (2013), "An overview of Logistics and Logistics System”, Monographs "Some issues of sustainable development in our country's logistics system in international economic integration", Labour and Social Publishing House, pp. 9 - 29. Dang Thi Thuy Hong (2013), "Classification and Role of Logistics ", Chapter 1 of syllabus "Logistics and Enterprises Commerce", Labour and Social Publishing House, pp. 25 - 36. Dang Thi Thuy Hong (2013), "Situation of logistics system development in the cargo traffic and distribution of Vietnam”, Symposium No. 15 of Mission of International Cooperation about science and technology: "Construction and development of logistics system towards sustainability – Experience of Germany and Lessons for Vietnam” No. 6/HĐ-HTQTSP, dated 05/01/2013. Dang Thi Thuy Hong (2013), " Analysis and assessment of the development of Logistics infrastructure of Vietnam in international integration and the impact of logistics systems to enterprises’ business efficiency”, Symposium No. 31 of Mission of International Cooperation about science and technology: "Construction and development of logistics system towards sustainability - Experience of Germany and Lessons for Vietnam” No. 6/HĐ-HTQTSP, dated 05/01/2013. Dang Thi Thuy Hong (2012), "Development of logistics services and assessment indicator for logistics development", Monographs "Logistics services in Vietnam in the process of international integration ", National Political Publishing House, pp. 47 - 85. Dang Thi Thuy Hong (2010), "Requirements, capabilities and orientation of logistics service development in Vietnam to 2020”, Topic Branch No. 7 (No. 07 / QD - DT dated 04.12.2010 of state-level independent research "Development of Logistics Services in our country’s international integration”, code ĐTĐL 2010T/33.