PM: High logistic costs place burden on businesses

High logistics costs have become a major barrier for businesses and reduced the competitiveness of the national economy, Prime Minister Nguyen Xuan Phuc said at a national conference in Hanoi on April 16 to seek ways to reduce logistic expenses and improve transport connectivity.
pm high logistic costs place burden on businesses

PM Nguyen Xuan Phuc speaks at the conference held in Hanoi on April 16

The asynchronous investment and poor connectivity result in high production costs, he said, adding that this is a challenge of many localities, especially those in the Mekong Delta region.

PM Phuc said over the past time, ministries and relevant agencies from central to local levels have exerted efforts to improve logistic services. However, the expenses for logistic services remain high, leading to weak economic competitiveness, he added.

“We should find the best solutions to reducing logistic costs for businesses,” the PM said, stressing the need to work out effective measures to improve transport connectivity among ports, railway stations and airports.

The government leader tasked the Ministry of Transport and the Ministry of Industry and Trade to finalise legal policies on logistic services, improve infrastructure and competitive edge for logistic firms, develop markets for logistic services, and increase quality of logistic human resources.

The PM also requested the Ministry of Transport to address matters relating to technology and international relations to develop deep seaports and inland container depots (ICDs) and improve transportation via railways and inland waterways.

According to the World Bank, Vietnam ranked 64th amongst 160 countries in the Logistics Performance Index in 2016. The Southeast Asian country’s logistic sector records an annual average growth rate of 14%-16%.

However, the expenses for logistic services accounted for 20.9% of Vietnam’s gross domestic product (GDP), of which transportation costs amount to 59%.

The shipping costs of a 40 feet container from Hanoi to Ho Chi Minh City (excluding loading and unloading costs) is estimated at VND40 million (US$1,762), 9.7 times higher than that of sea routes and 2.5 times higher than that of railways, according to Ministry of Transport.

Source: VNA

Related News

What do businesses do to cope with foreign trade traps?

What do businesses do to cope with foreign trade traps?

VCN - In commercial disputes that are required to be resolved at the Vietnam International Arbitration Center (VIAC), many Vietnamese businesses are suffering disadvantages due to negligence right from the negotiation and contracting.
Bac Ninh Customs: Coordinate to promote import and export through the area

Bac Ninh Customs: Coordinate to promote import and export through the area

VCN - Thanks to the smooth coordination and information sharing between Bac Ninh Customs Department and the Management Board of Industrial Parks (IZs), it has contributed to creating favorable conditions, shortening administrative procedures and promoting investment, improving competitiveness through areas managed by the Department, including Bac Ninh, Bac Giang and Thai Nguyen.
Avoid legal risk for businesses to reach out to the international market

Avoid legal risk for businesses to reach out to the international market

VCN – Businesses need to be careful and pay more attention to legal factors in in international trade, especially when the market still has many unpredictable fluctuations, said by Dr. Vu Tien Loc, President of the Vietnam International Arbitration Center (VIAC), National Assembly Delegate, Member of the National Assembly's Economic Committee.
Diversifying supply sources for businesses to participate in the global value chain

Diversifying supply sources for businesses to participate in the global value chain

VCN - Vietnam currently has about 2,000 businesses producing spare parts and components, but only about 300 businesses can participate in the supply chain.

Latest News

PM asks for solutions towards 95% of public investment disbursement rate

PM asks for solutions towards 95% of public investment disbursement rate

Prime Minister Pham Minh Chinh has asked for breakthrough solutions to fulfil the target of 95% in the disbursement rate of public investment capital in 2024.
Industrial production has not yet been able to fully recover as before the Covid-19 pandemic

Industrial production has not yet been able to fully recover as before the Covid-19 pandemic

VCN - Industrial production in the second quarter of 2024 grew more positively than in the first quarter of 2024, the value added growth rate was estimated at 8.55% over the same period last year. In the first six months of the year, the added value of the industrial sector increased by 7.54% over the same period last year, of which the processing and manufacturing industry increased by 8.67%.
PM urges measures to remove obstacles to e-commerce

PM urges measures to remove obstacles to e-commerce

Prime Minister Pham Minh Chinh has stressed the need to implement specific tasks in order to untangle knots in e-commerce development, according to the Government Office.
European firms hope for Vietnam’s continuous policy adjustments: EuroCham survey

European firms hope for Vietnam’s continuous policy adjustments: EuroCham survey

The European Chamber of Commerce in Vietnam (EuroCham) on July 15 released its Business Confidence Index (BCI) report for the second quarter of 2024, which reveals a marginal decline from 52.8 in Q1 to 51.3 in Q2, underscoring the necessity for ongoing policy adjustments to maintain momentum.

More News

Six factors positively impact economic growth in 2024

Six factors positively impact economic growth in 2024

VCN- Minister of Planning and Investment (MPI) Tran Quoc Phuong said there are 6 factors that will positively impact economic growth in the remaining months of 2024.
Vietnam attends 14th annual East Sea conference in US

Vietnam attends 14th annual East Sea conference in US

A Vietnamese delegation led by Vice President of Diplomatic Academy of Vietnam Nguyen Hung Son attended the 14th annual conference on East Sea (also known as South China Sea) held by the Washington DC-based Centre for Strategic and International Studies (CSIS) on July 11.
President’s state visits contribute to strengthening Vietnam-Laos-Cambodia cooperation: FM

President’s state visits contribute to strengthening Vietnam-Laos-Cambodia cooperation: FM

Vietnamese President To Lam’s state visits to Laos and Cambodia from July 11-13 have contributed to enhancing the traditional and effective cooperation among the three countries, Minister of Foreign Affairs Bui Thanh Son has said.
HCM City gears up for future workforce challenges

HCM City gears up for future workforce challenges

A recently approved labour and employment strategy of Ho Chi Minh City outlines potential challenges and opportunities for its workforce between 2023 and 2030.
Important innovation in the draft Law on Management and Investment of State Capital at Enterprises

Important innovation in the draft Law on Management and Investment of State Capital at Enterprises

VCN - Continue to collect comments on the draft Law on Management and Investment of State Capital at Enterprises, representatives of state-owned enterprises all said that the work of developing the Law needs to pay attention to avoid overlap when implementing with other related laws.
Vietnamese economy recovers rapidly thanks to drastic actions: IMF expert

Vietnamese economy recovers rapidly thanks to drastic actions: IMF expert

Vietnam's economy recovered rapidly in the first half of 2024 after a challenging period at the end of 2022 and early 2023, thanks to its government’s drastic actions, according to Paulo Medas, head of the International Monetary Fund (IMF)’s 2024 Article IV Mission to Vietnam.
President arrives in Phnom Penh, beginning state visit to Cambodia

President arrives in Phnom Penh, beginning state visit to Cambodia

State President To Lam arrived at the Phnom Penh International Airport on July 12 afternoon, starting his two-day state visit to Cambodia at an invitation of King Preah Bat Samdech Preah Boromneath Norodom Sihamoni.
Government unveils plan to empower intellectual workforce for national growth

Government unveils plan to empower intellectual workforce for national growth

The Government has issued a resolution outlining its action programme to continue building and elevating the role of intellectual workforce for national rapid and sustainable development in the new era.
President To Lam sets off for state visits to Laos, Cambodia

President To Lam sets off for state visits to Laos, Cambodia

President To Lam and a high-ranking delegation of Vietnam left Hanoi on July 11 morning for three-day state visits to Laos and Cambodia.
Read More

Your care

Latest Most read
PM asks for solutions towards 95% of public investment disbursement rate

PM asks for solutions towards 95% of public investment disbursement rate

Prime Minister Pham Minh Chinh has asked for breakthrough solutions to fulfil the target of 95% in the disbursement rate of public investment capital in 2024.
Industrial production has not yet been able to fully recover as before the Covid-19 pandemic

Industrial production has not yet been able to fully recover as before the Covid-19 pandemic

Industrial production in the second quarter of 2024 grew more positively than in the first quarter of 2024, the value added growth rate was estimated at 8.55% over the same period last year.
PM urges measures to remove obstacles to e-commerce

PM urges measures to remove obstacles to e-commerce

Prime Minister Pham Minh Chinh has stressed the need to implement specific tasks in order to untangle knots in e-commerce development, according to the Government Office.
European firms hope for Vietnam’s continuous policy adjustments: EuroCham survey

European firms hope for Vietnam’s continuous policy adjustments: EuroCham survey

The European Chamber of Commerce in Vietnam (EuroCham) on July 15 released its Business Confidence Index (BCI) report for the second quarter of 2024, which reveals a marginal decline from 52.8 in Q1 to 51.3 in Q2, underscoring the necessity for ongoing policy adjustments to maintain momentum.
Six factors positively impact economic growth in 2024

Six factors positively impact economic growth in 2024

VCN - Analyzing more specifically the basis for this recommendation, according to the representative of the Ministry of Planning and Investment, there are 6 factors that create a positive impact on economic growth in the remaining months of 2024.
Mobile Version