Transnational road freight opens up opportunities

Efficient delivery

Despite driving goods trucks between China and Vietnam for many years, Li Cishen had never ventured further than the border city of Lao Cai on the Vietnam side, but on May 14 he was among a convoy of Chinese truck drivers who departed from Kunming, capital of Yunnan province, to pass directly into Vietnam to deliver their goods.

Instead of stopping at the border and unloading his truck, a task that takes time and costs approximately 800 to 1,000 yuan ($112 to 140), Li drove his 18-meter vehicle straight on to Hanoi, the Vietnamese capital, to deliver a load of fresh vegetables.

The 700-kilometer international journey was an eye-opener for the experienced driver.

"Before this, I only made it to Lao Cai and called that Vietnam," Li said. "This time, I went all the way to Hanoi. That's a first for me."

Li was joined by 17 other Chinese drivers who set off from Kunming, and Nanning in Guangxi, heading south to Vietnam. Their freight vehicles, carrying electronics, fresh produce, flowers, general merchandise and two passenger buses, arrived in Hanoi the following day.

Jin Jia, director of international business at Chinese logistics company, Yunnan Maosheng International Logistics, said his company is set to directly benefit from the new agreement.

"Now our trucks can drive directly into Vietnam's major cities like Hanoi and Ho Chi Minh City without having to transship goods at the border," Jin said.

"This permit works like a passport for our trucks — domestically, we use the vehicle license, and internationally we use the GMS permit," he said.

Currently, the agreement allows for 500 permits for goods vehicles from each side crossing the border.

Pu Xiaoqiang, general manager at Yunnan Youjie International Logistics, another Chinese firm, said the increased efficiency will boost business on both sides of the border.

"For perishable goods like vegetables and flowers, this time saving is critical," Pu said. "Earlier, it took two days to reach Hanoi from Kunming. Now it takes just one. In Vietnam's hot climate, speed determines freshness."

Vietnamese consumers have a growing appetite for flowers and fresh vegetables from Kunming, while Chinese buyers favor tropical fruits like durian and lychees from Vietnam. "These agricultural products are extremely sensitive to time and temperature," Pu said. "With no need for reloading or unloading, cargo damage is nearly zero."