Ho Chi Minh City: Determined to become the leading logistics center in the region

	Businesses report Customs many issues
	Vietnam's logistics sector embraces green transition amid global pressure
	Vietnam's logistics sector embraces green transition amid global pressure

Cat Lai port area will have a logistics center with an area of ​​60-100 hectares. Photo: T.H

There is no large-scale logistics centers yet

In the master plan for logistics development in Ho Chi Minh City until 2025, with a vision to 2030, issued by the Ho Chi Minh City People's Committee in 2021, Ho Chi Minh City aims to build 8 large-scale logistics centers divided into 3 groups.

Group I includes three centers. In 2021, the bidding for investment in the High-Tech Park Logistics Center will be completed, with an area of ​​five to six hectares, with a cargo handling capacity of 150,000 tons in the 2021-2025 period; 300,000 tons in the 2026-2030 period and after 2030. In 2023, the preparation for investment in the Cat Lai Logistics Center in the 2021-2025 period will be completed, with an area of ​​60-100 hectares, with a cargo handling capacity of 1.5-1.8 million TEU; In the next phase, the capacity will be increased to 3.1 million - 3.5 million TEUs. At the same time, Linh Trung Logistics Center will connect with Linh Trung Export Processing Zone.

Group II strives to complete investment preparation for four logistics centers by 2025.

Group III has three logistics centers that have completed investment preparation by 2030.

HCMC strives to complete the establishment of a digital logistics map, a centralized data area and a logistics technology research and application center by 2025. However, the implementation of logistics centers in HCMC is currently slow.

Mr. Tran Anh Duc, Co-head of the Investment & Trade Group of the Vietnam Business Forum Alliance (VBF), said that foreign business communities are very interested in the Vietnamese logistics market because this is the production center of Asia, with high domestic demand. However, at this economic locomotive, the infrastructure has not met the demand. The road to Cat Lai port and the Ho Chi Minh City - Long Thanh - Dau Giay expressway is often congested. Currently, Ho Chi Minh City does not have a large-scale logistics center.

With its central role in the Southern key economic region in particular and the whole country in general, Ho Chi Minh City is the place where a large amount of goods are produced and consumed. In addition, the city has a geographical advantage when it is located between the North - South and East - West traffic axes, so it has become a center for domestic goods circulation and import and export for the southern provinces. Therefore, the demand for using and connecting logistics services within Ho Chi Minh City and between Ho Chi Minh City and other localities as well as internationally is very high.

Dr. Tran Quang Thang, Director of the Ho Chi Minh City Institute of Economics and Management, acknowledged that the City has not fully exploited this potential in the past. Two-way trade of goods between the City and the provinces is not yet commensurate with the potential. The main reason is that logistics activities mainly focus on the transportation of goods at the port; in which, road transport is the main method. However, traffic jams often occur on roads, the infrastructure system is incomplete and lacks connectivity; air and water routes have not received proper investment...

Building eight large logistics centers

Vice Chairman of the Ho Chi Minh City People's Committee Vo Van Hoan commented that infrastructure is a weak link but is being paid attention to by the Government and will be expanded in the near future. In particular, Ho Chi Minh City is having a large project - Can Gio International Transit Port. Ho Chi Minh City is calling for investment in this project and other waterway infrastructure projects.

Promoting the potential of the largest urban area in the country, the Ho Chi Minh City People's Committee has just issued a plan to develop the logistics industry, aiming to improve the capacity of seaports and become a leading logistics center in the region by 2030 and vision to 2045. According to this plan, Ho Chi Minh City aims to become a logistics service center of Southeast Asia by 2030 and be internationally competitive by 2045.

Ho Chi Minh City's goal is to develop logistics into an industry with an important position and role in the economy by 2030 on the basis of maximizing opportunities to take the lead in global supply chains; promoting the formation of green, modern supply chains and gradually participate deeply in the global supply chain, meet the needs of international economic integration, and develop a connection network.

Projects will be strongly implemented to turn the city into a regional logistics service center of Southeast Asia, focusing on investing in developing a synchronous and modern logistics infrastructure system and seaports, strengthening the connection of economic, industrial, trade, service and distribution centers of the Southeast region and the Southern key economic region.

The goal by 2045 is for logistics to become a key economic sector, contributing over 12% to GRDP, with a revenue growth rate of 10 - 12% per year for the City. The rate of outsourcing logistics services will exceed 70%, contributing to reducing the country's logistics cost ratio to 10 - 12%. Therefore, the City expects to reach the 30th position in the world in terms of logistics efficiency, turning Ho Chi Minh City into a logistics service center of Asian and world stature.

Achieving this goal, the Ho Chi Minh City People's Committee has made a plan, focusing on transforming and applying green logistics in the supply chain to help transport goods effectively while minimizing emissions, pollution, and being environmentally friendly.

At the same time, this is considered one of the prerequisites for development, integration, helping businesses increase competitiveness and sustainable growth. In particular, priority is given to implementing projects applying 4.0 technology, high-tech technology, digital transformation and green transformation, using renewable energy and applying environmental protection measures.