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Developing logistics services to support import and export activities

11:00 | 06/12/2021

VCN - On November 30, at the seminar, "Identifying opportunities and challenges for the development of Logistics in Ho Chi Minh City" organized by the Logistics Association of Ho Chi Minh City (HLA), leaders said that they will be developing services to support import and export activities.

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Director of Ho Chi Minh City Customs Department, Dinh Ngoc Thang, shared at the conference. Photo: T.H
Director of Ho Chi Minh City Customs Department, Dinh Ngoc Thang, shared at the conference. Photo: T.H

With a view from the State management agency on customs at seaport and airport border gates in Ho Chi Minh City, Director of Ho Chi Minh City Customs Department, Dinh Ngoc Thang, said: “According to preliminary statistics, in the period from 2015 to 2020, the total import-export turnover of goods through Ho Chi Minh City ports was about US$ billion. Of which the value of goods cleared through the Customs Department of Ho Chi Minh City was more than US$600 million, earning nearly VND550,000 billion for the State budget, increasing by nearly 40% compared to the period between 2011-2015.

Particularly in 2021, despite being greatly affected by the pandemic, the city's recovery of import-export activities was very large. Total import-export turnover as of November 15, 2021 was estimated at US$116 billion, up 16% over the same period in 2020.

Excluding the impact of the pandemic, it is expected that by 2025, the total import-export turnover of goods through the city is expected to reach about US$165 billion (exports reaching US$80 billion and imports reaching US$85 billion). The State budget revenue of Ho Chi Minh City Customs Department could reach VND130,000 billion in 2025 and VND147,000 billion in 2030.

With the above development rate, the quality of the logistics infrastructure system in the city has not yet met the scale of commodity growth. Transport infrastructure has also not reached the Government's master plan, making logistics services currently unable to develop to their full potential.

Assessing the role of the logistics industry in Ho Chi Minh City, Bui Ta Hoang Vu, Director of the Ho Chi Minh City Department of Industry and Trade, said: “The proportion of logistics activities' contribution to the City's GRDP is about 8.9% of the GRDP in Ho Chi Minh City, but investment in logistics industry has not been forthcoming, and has mainly been seen of spontaneous enterprises.”

There is currently no participation of departments, friends and sectors. Many warehouse systems are also lacking, mainly cold storage. Due to this, logistics costs are at a high level, accounting for 19% of GDP.

“In order to meet the growth of goods in Ho Chi Minh City, the goal of logistics development in Ho Chi Minh City is to increase by about 15%. The contribution rate to 2025 is 12% of GRDP, reducing logistics costs to 10-15%. Ho Chi Minh City will invest in forming eight professional logistics centers, with linkages, to reduce logistics costs for businesses," said Bui Ta Hoang Vu.

Logistics costs are still high. Photo: T.H
Logistics costs are still high. Photo: T.H

As a customs manager, to support the development of logistics services into a billion-dollar industry, Director General Dinh Ngoc Thang said that: “Ho Chi Minh City Customs Department have issued many programs to facilitate trade, developed logistics, and customs agents and supported businesses to recover during and after Covid-19.”

The city's rate of providing level 3 and 4 public services is over 80%.

“Especially, in the period 2021 to 2025, the Ho Chi Minh City Customs Department will follow the direction of the General Department of Customs to implement a smart customs project, innovate specialized inspections and contribute to creating a strong momentum for logistics activities,” Director Dinh Ngoc Thang confirmed.

From a business perspective, Dang Thi Minh Phuong, President of HLA, said that during the pandemic, logistics businesses have performed their roles well.

Phuong said that, with its position as the international trade gateway of the Southeast region, the logistics industry plays an important role in the economic and social development of Ho Chi Minh City. The Covid-19 pandemic has seriously affected the global supply chain, though. Up to now, after nearly two months since Ho Chi Minh City reopened, logistics enterprises in Ho Chi Minh City have been actively adapting to new conditions for economic recovery. However, there are still many difficulties and challenges. Therefore, the logistics industry needs to be the priority in the stimulus package to support other industries.

Although still being affected by the pandemic, this is also an opportunity for businesses to reinvent themselves and find new directions in line with market needs to survive and develop. Responsive businesses will immediately seize new opportunities for development, contributing to improving the economy.

“With the close attention and coordination of the City leaders, management agencies and businesses, businesses will take advantage of market opportunities in the post-Covid-19 period to innovate, adapt and develop, contributing to the overall plan for development of the logistics industry," said Dang Thi Minh Phuong.

By Le Thu/ Huu Tuc