Hai Phong Land Transportation Association
A model for policy advocacy Background (HATA) brings together transportation companies in the Hai Phong area. One of its main functions is to reduce competition within the goods transportation sector, to set ...
A model for policy advocacy
Background
(HATA) brings together transportation companies in the Hai Phong area. One of its main functions is to reduce competition within the goods transportation sector, to set common freight rates to prevent price ‘dumping’ and participate in removing obstacles in land transportation policies. The organization has one chairman, two vice chairmen, two standing commissioners and one Secretary General, who is in charge of the association’s office. All board members are owners/directors of member enterprises as well. There is one administrative staff member. Revenues come mostly from membership fees based on fleet size. Other income comes from transportation insurance premiums. Otherwise, revenue is difficult to generate.
The organization grew out of the fact that long-distance land transportation companies could not survive in a climate of over-regulation by the government. And corruption was increasing. That finally prompted businesses to come together and create a better environment on their own. Hence, the Association was founded in April 2003, in the context which the Government issued the Decision 15CP on settling violation of land transportation regulation. Decision 15CP.
In the early days, HATA had 81 members. It was able to successfully advocate for the removal of a number of unreasonable regulations on the transportation of commodities. But then many enterprises left the group rather than pay membership fees. By July 2006, 40 enterprises remained, 38 of which were private businesses and two of which were joint-stock companies. Together they managed over 1000 vehicles capable of transporting super-long and heavy loads at about 70% of imported and exported goods via Hai Phong Port.
Member outreach and enrolment is low and there is no specific plan to expand. Enterprises that apply for membership have said that they learned about the group on their own and not from any outreach. As a part of recent advocacy campaigns, however, HATA’s name and presence have grown in newspapers and television, and conferences are common. However, such public presence is more to call for support on policy rather than to attract new members.
Traditionally HATA has not had a long-term strategic development plan. Its operations are mainly directed by the General Meeting annual operating plan. But with the support of the EU’s Vietnam Private Sector Support Program last year, HATA is developing a strategic development plan.
The organization has certain strong points as well, such as full-time staff that are experienced and committed to development. And the vice chairman of the association is enthusiastic and experienced in advocacy. They have also initiated some pilot member support services. But the need remains for a long-term development strategy and diversified services, especially those that create long-term benefits for members.
Member services
Trainings
HATA has cooperated with the Vietnam Chamber of Commerce and Industry (VCCI) in Hai Phong to send members to management trainings with city bodies to organize trainings on transportation safety. Yet these have seen lower HATA member attendance, partly because there is little incentive and no recognition that might make HATA’s members stand out among non-members. HATA also offers an information service, consolidating new policies and regulations into a short, easy-to-understand format.
Other services include legal assistance and consultancy, for example, when members violate transportation laws. This consultancy is normally in the form of legal support to minimize fines. However this type of assistance is “reactive” only and doesn’t provide more long-term benefits to members.
The Association is also preparing a proposal to use 10 ha of land in Dinh Vu for parking, which it will rent to enterprises. Members will enjoy a favorable price or payment scheme.
| Fact Sheet | |
| Name of association: | (HATA) |
| Year of establishment | May 2003 |
| Number of members | 40 |
| Type of organization | Provincial business association, single sector: land transportation |
| Term of General Meeting | 3 years – Second General Meeting in June 2007 |
| Organization and staffing: | Total number of Executive Board members: 7 (no women)Chairman: 1Vice Chairman: 2General Secretary: 1 – full-timeMembers: 03Staff: 1 full-time (1 woman) |
| Services Provided | Training, with supportInformation ProvisionPolicy Advocacy |
| Funding | Membership fee |
| Services and Facilities | |
| Line Membership | VATA |
| Representative | Mr. Trinh Quang, Chairman |
| Contact | Mr. Pham Trong Thinh, Standing Vice Chairman, Secretary General18 Tran Hung Dao, Hai PhongTel 031 810837HP 0912759698 |
Turning points
Policy Advocacy
Among the greatest difficulties facing transportation businesses in Hai Phong are an overwhelming regulatory climate and lack of transportation infrastructure. A larger organization would give shippers a common voice. This takes the form of advocacy, most recently for the removal of sub-licenses on trailers, removal of excessive height limits on containers transiting bridges, an increase in the speed limit on motorways, and removal of certain tolls. Advocates follow a comprehensive process, reviewing existing regulations, conducting field investigations, reviewing best practices in other countries, developing proposals, using mass media and conferences to disseminate the proposal, and finally direct dialog with policymakers.
Two typical examples of policy advocacy were to change the position of tollbooths on National Highway No. 5 and to change height regulations for loaded trucks to fit HC40 containers (‘high containers’). Advocacy to change these height regulations for loaded trucks to fit the “high containers” best illustrates the policy advocacy model by HATA.
Reviewing existing regulations and conducting field investigations
In the HC40 campaign, the basic regulation addressed land transportation of ‘super long’ and super heavy goods. ‘Super-long’ goods are over 20m, awidth of over 2.5m and height of over 4.2m from the ground when loaded. Businesses that wanted to transport them had to apply for a special license guaranteeing that trucks would clear bridges by at least 30cm. (Based on the assumption that most ‘flyovers’ in Vietnam are at least 4.5m).
HATA measured the distance between the road and the lowest point of all the flyovers on Highway 5 and found that the lowest one, Niem Bridge in Hai Phong, had the lowest height, of 4.6m. HC40s would pass well under this at normal speed. The Association also proposed increasing the relative height of certain lower flyovers by lowering the road surface as a less-costly alternative to forcing the entire fleet to shift away from HC40 containers.
Reviewing regulations and common practices to develop a proposal
After conducting further field investigations on the HC40 issue, HATA collected information on the regulations and common practices in other countries with similar systems. They pointed to the fact that HC40s are in accordance with international standards at 2.8 to 2.9m. The trailers are produced in accordance with ASEAN standards and imported from Korea, Japan and Taiwan. They also indicated that such trailers and containers are used together in those countries as common practice.
Once they had enough information, they developed a proposal to change the regulation and also recommended lowering the road at certain flyovers. They started a media campaign about the issue in Business Forum Newspaper, Labor Newspaper, Youth Newspaper, Agriculture, Transportation and Traffic, local Hai Phong Newspapers, as well as various programs on VTV1 and Hai Phong Television. They also brought up the issue at business forums by VCCI and persuaded the clients as well as transportation firms to have a common voice.
Dialog with policymakers
The group held dialogs with the Ministry of Transportation in 2003 and 2004 on the issue. Equipped with sufficient evidence to make their case, they were able to influence MOT to change the regulations. Their first point was to ask for removal of the special license in April 2003 and in June 2004 they asked for removal of a ban on HC40s. One week later, MOT signed the decision.
Following-up change
HATA did not stop there. They continued to follow up on the implementation of the new policies to see that all partners, including traffic police and transportation management agencies, were in compliance. Now, other associations have approached them to learn from their experience.
One of the most important benefits which HATA brought to its members is policy advocacy to remove irrelevant legal or regulated barriers to facilitate the operations of members’ businesses. With regards to this matter, HATA played a very strong role as a connecting point between member businesses and policymakers. ”
- Mr. Pham Trong Thinh, Vice Chairman and General Secretary
Lessons learned
- One of the most important success factors for HATA has been collective effort in advocacy. In addition, HATA has played very well the role of liaison between businesses and policymakers. HATA listened to businesses, studied the policies and found a way to reconcile the two sides. As a result, member businesses are more comfortable in the new environment, regulators are more involved in the dialog, and the work of traffic police is easier. No single business would have been able to do this alone.
- Transportation companies need parking and their next project, to secure use of a large tract of land in Dinh Vu as a depot, would allow members to store their containers and trucks at very low cost.
- Another remaining challenge is membership development. To date, many enterprises have sought membership only when unfavorable policies or regulations immediately harm their interests. Then, once they’ve gotten the policy changes, they withdraw to avoid commitment to standard rates, load limits, speed limits, and safety regulations.
The cases presented in the preceding pages illustrate the breath and diversity of business associations today. They are old or new, large or small, consisting of men or women, with members from one sector or including people from a variety of professions, and with success stories and also difficulties. The information presented does not permit a very thorough analysis, but is helpful in making the life of associations visible and understandable. It also provides some insights into what works well, and what are the main obstacles to count with when promoting associations.
The facts about the start-up phase of associations as reflected in some of the case studies give a comprehensive picture of how Business Associations (BA) in Vietnam come into being. They underlines both the objective necessity for such organizations in the market-based economy as well as the maturity of part of the business community in getting together to solve common problems. Relevant cases are those of HATA, BTCA and BPCAS. In many cases, the initiatives and support of Government authorities and development agencies have been crucial for BAs to start and build up their capacity in delivering services for their members, such as in the case of the Nam Dinh Women’s Business Clubs, BPCAS and BTCA.. Most business associations for women in the case studies take the shape of informal business clubs and do not enjoy full legal recognition (except Thanh Hoa Women’s Business Association). Nevertheless, they have proven helpful particularly in support for women entrepreneurs thanks to their connection with the Women’s Union network and considerable support from international donor projects
The activities undertaken by associations are initiated mainly to respond to the immediate needs of the members. Most BAs do not have a clear vision and a consistent long-run plan or documented development strategy. In some cases, members just receive verbal or informal ‘direction’ at meetings. Evaluations of activities and results are rarely done. These are symptoms of the limited managerial capacity and sometimes low commitment of the leaders of the associations, explaining some of the ups and downs of BAs.
Most BAs focused on one or two services only. Thus, some associations focus on training, others on policy advocacy, price and quality control or trade promotion. This is often a good start, which needs to be followed by a strong portfolio of services based on members’ needs which must link to the purpose and future development of BAs. Policy advocacy proves to be very important if not the most important activity of any BA. In the case studies, that is the starting point that put many associations ‘on wheels’. It seems that successful associations develop a policy advocacy strategy aimed at identifying, analyzing and improving the laws and regulations that affect their members and must be firm to implement it. In this regard, HATA offers a case with many learning points.
The association management in many cases pays insufficient attention to membership development and retention. Only few have some sort of membership strategy. At the associations with a mixed membership (corporate and individual, big enterprises and small ones, and different professions) a significant group of members often receive little attention. This risks leading to a low level of participation and, in the long term, members could decide to withdraw. Though the associations in the case studies have developed certain organizational set-up, it is far from being an efficient and professional one. Some associations keep a very simple set-up, while others developed a comprehensive structure with large number of governing bodies compared to its size of membership and to its capacity of deployment. In most of the cases, the activities of BA depend greatly on a few core members who are willing to support the association. However, the proportion of membership in the sector/area is small, which makes if difficult to become effective in representation and advocacy. Often, among the executives, even among Vice-Chairmen and Chairmen, only few have time and are actually dedicated for association work. Improvement of these aspects will substantially increase the strength of BAs and level up its position in the eye of business community and public.
In most of the cases, the association’s office is not sufficiently staffed and the remunerations and working conditions are not attractive. This could lead to high staff turnover and the lack of necessary expertise required to serve the members properly. In addition, most BAs have difficulty in generating operation funds. For many, sustainable finance is a crucial issue and BAs have been looking for different measures to assure minimum resources.
The experience from these and other Business Associations in Vietnam provides ample evidence of the potential benefits members can obtain from building effective advocacy strategies and providing worthwhile services for enterprise development. This publication has presented some of the experience of the associations but there is more to learn. Below follows other successful activities of the associations:
- The initiation and management of the Thanh Long infrastructure/industrial park project by the HUAIC
- Organizing and branding Trade Fairs and Shows by Saigon Leather & Shoes Association (SLA)
- Improving communication within BAs and with the world outside, using media and IT by HUAIC, YBA, BTCA
- Generating income for BAs by running a commercial entity of HCM-YBA or developing a collective insurance premium rate (HATA)
