GRADUATION THESIS Major: International Business Economics TRANSPORT AND TRADE FACILITATION IN MALAYSIA AND LESSONS FOR VIETNAM i TABLE OF CONTENT LIST OF ABBREVIATIONS ..............................................................................iv LIST OF TABLES.................................................................................................v LIST OF FIGURES..............................................................................................vi INTRODUCTION .................................................................................................1 CHAPTER 1: GENERAL THEORY OF TRANSPORT AND TRADE FACILITATION ...................................................................................................5 1.1. Overview of trade facilitation...........................................................................5 1.1.1. Definition of trade facilitation....................................................................5 1.1.2. Benefits of trade facilitation.......................................................................8 1.1.3. Issues of trade facilitation ..........................................................................9 1.2. Regional and international policies on trade facilitation .............................. 13 1.2.1. Policy framework ....................................................................................13 1.2.2. Regional and international organizations working on trade facilitation ....14 1.2.3. International policies and strategies related to trade facilitation ...............20 1.3. Key performance indicators of trade facilitations.......................................... 22 1.3.1. Logistics Performance Index (LPI)..........................................................22 1.3.2. Global Competitiveness Index (GCI).......................................................24 1.3.3. Enabling Trade Index (ETI).....................................................................25 1.3.4. Global Connectedness Index (GCI – DHL)..............................................25 1.3.5. Other indicators.......................................................................................26 CHAPTER 2: CURRENT STATUS OF THE DEVELOPMENT OF TRANSPORT TO FACILITATE TRADE IN MALAYSIA IN THE PERIOD 2005 - 2014 ........................................................................................................... 27 2.1. Overview of Malaysia’s economy................................................................... 27 2.1.1. Geographic location and political situation of Malaysia...........................27 2.1.2. Economic situation of Malaysia...............................................................29 2.1.3. Foreign trade of Malaysia ........................................................................30 2.1.4. Malaysia’s inward foreign direct investment............................................33 2.2. Overview of Malaysia government’s operation of transport and trade facilitation............................................................................................................. 34 ii 2.2.1. Management of trade sector.....................................................................34 2.2.2. Customs and other border agencies..........................................................35 2.2.3. Management of transport sector...............................................................35 2.2.4. Malaysia’s plans on investing in transport and logistics...........................36 2.2.5. Malaysia’s participation in international transport conventions and agreements........................................................................................................37 2.3. Malaysia’s indicators of trade facilitation ..................................................... 38 2.4. Transport infrastructure in Malaysia ............................................................ 40 2.4.1. Road infrastructure and network.................................