Hanoi modernises logistics industry

A warehouse in ICD My Dinh in Hanoi. (Photo: hanoimoi.vn)

The capital city of Hanoi has been carrying out measures to become a logistic hub in Vietnam and Southeast Asia.

Located in the heart of the northern key economic region, having quite systematic transport connectivity with road, sea, waterway, railway and air transportation, Hanoi has great potential to develop logistic services.

Deputy Director of the city’s Department of Industry and Trade Nguyen The Hiep said that about 25,000 local logistic enterprises are operating in the city. However, they just meet 25% of the domestic demand and handle 18% of import-export goods. The remaining shares belong to those with foreign investment.

Currently, the system of warehouses and logistics yards in Hanoi is still small, lacking connections and types of specific goods storage such as cool and cold storage, or document warehouse. The number of inland container depots (ICD) is modest and they are just connected to roads, not other forms of transport like railways or waterways.

For 2023, the city set a target to develop logistics infrastructure harmonious with transport infrastructure, turning Hanoi into an important logistics hub of the region, the country and Southeast Asia.

However, the city faces difficulties in achieving the target including incomplete infrastructure, traffic congestion, air pollution plus bottlenecks in mechanisms, policies, human resources, and technologies, said Do Phan Anh, deputy head of the Transport Management Desk under the city’s Transport Department.

Director of the city’s Science and Technology Department Nguyen Hong Son said that to support the development of logistic activities, the city needs to implement digital solutions and to boost investment promotion in logistics service infrastructure projects.

Suggestions were raised to study and build logistics centres of appropriate scale on ring roads, connecting goods transiting hubs, warehouses, and distribution areas in production, agricultural, industrial, and industrial zones. Another solution is to develop smart transportation systems and digital platforms that connect good owners, transporters and customers.

Hanoi needs to strengthen logistic linkage with localities in the Capital Region to facilitate the transportation and distribution of goods from Hanoi to other provinces and cities; create conditions to promote the role of professional associations related to logistics services; encourage and attract major international and domestic logistics service providers to set up headquarters, branches and transaction offices in the city.

Anh said that to overcome difficulties relating to urban transportation, it’s a must to apply science and technology and implement smart transport projects effectively.

He suggested developing a trading floor for modes of transport to optimise two-way goods transportation./.