Reducing the "burden" of logistics costs, increasing competitiveness for enterprises

VCN - Logistics costs are a “burden on the shoulders” of enterprises, however logistics costs can be reduced to the equivalent of 16 - 18% of GDP by 2030. This goal is set in the draft Vietnam logistics service development strategy until 2030, vision to 2050.
Vietnam's trucking industry in the context of Asian logistics development Vietnam's trucking industry in the context of Asian logistics development
ASEAN bolsters collaboration to promote green, sustainable logistics sector ASEAN bolsters collaboration to promote green, sustainable logistics sector
Reducing the Reducing the "burden" of logistics costs, enhancing businesses’ competitiveness
Reducing the
The train carried the first batch of goods exported from Binh Duong to China at Song Than station (Binh Duong province), September 27, 2023. Photo: T.D

Assessing the outstanding marks in Vietnam's logistics activities in 2023, the Import-Export Department (Ministry of Industry and Trade) said that Vietnam's logistics currently ranked 43rd according to the World Bank (WB) assessment.

​According to the World Bank's report announcing the Logistics Performance Index (LPI - Logistics Performance Index) in 2023, Vietnam ranked 43rd, in the group of 5 highest-ranked ASEAN countries. The average annual growth rate of Vietnam's logistics market reached 14 - 16%.

Previously, in the most recent ranking announcement in 2018, Vietnam had a spectacular leap from position 64 to position 39. So after 5 years, Vietnam dropped 4 ranks, but the LPI score of our country increased from 3.27 (2018) to 3.3 points (2023).

Start and completion of many key transportation infrastructure projects

In recent times, the Ministry of Transport has developed and implemented specialized transport plans for the period 2021 - 2030, a vision to 2050 (including road network planning, railway system planning, master plan to develop the seaport system, master plan to develop the national airport system, inland waterway infrastructure planning) to promote the completion of commercial infrastructure serving circulation, including circulation of goods.

Regarding roads, many sections of the North-South expressway have been completed and put into operation. Regarding railways, put some more international stations into operation such as Kep station (Bac Giang), Song Than station (Binh Duong), study Cao Xa international intermodal station (Hai Duong) to serve connection with China,... Regarding inland waterways, the canal complex connecting Day River with Ninh Co River has been completed and put into operation. Regarding the sea route, many important navigation channels have been dredged. Regarding airways, implementing the construction of Long Thanh airport and upgrading and renovating many other airports such as Con Dao, Dien Bien,... contributes to promoting the development of transport infrastructure growth compared to other countries in the region. and around the world.

According to the Ministry of Industry and Trade, logistics plays an important role in the entire process from production, import and export, circulation and distribution to consumption, creating added value, making a great contribution to e socio-economic development. of the country, especially in the process of industrialization - modernization of the country, proactive and positive international economic integration.

Besides, Vietnam has many potentials and advantages in developing logistics services, located in a strategic position in a dynamic development area of the world, with an economy on the rise and deep international integration, is a market with large consumption power, e-commerce tends to develop strongly, has the advantage of a favourable geographical location for international transportation,.. In the context of Vietnam's deep integration into the regional and world economy, actively participating in free trade agreements and geo-economic advantages, Vietnamese logistics services have many opportunities to develop and participate more deeply in the global logistics supply chain

Besides the achieved results, Vietnam's logistics service industry in the recent period still has limitations such as low competitiveness, logistics costs are much higher than other countries in the world, contributing to GDP only from 4% - 5%...

The 10-year Socio-Economic Development Strategy 2021 - 2030 clearly states: “Promote the restructuring of service industries based on modern technology, digital technology, develop new types of services, build a service ecosystem in the fields of finance, banking, insurance, legal, healthcare, education and training, telecommunications and information technology, logistics and transportation distribution”.

Currently, the Ministry of Industry and Trade is developing a draft Strategy for developing Vietnam logistics services to 2030, a vision to 2050 with many numbers and solutions that have been proposed. The draft sets the goal of developing Vietnam's logistics service industry to be sustainable, efficient, high quality and added value, capable of competing in the region and the world, promoting Vietnam's advantages in the global value chain.

For the goal by 2030, the contribution of the logistics service industry to GDP will reach 6%-8%; the average annual growth rate of the logistics service industry will reach 15%-20%; The rate of outsourcing logistics services will reach 60%-70%.

In particular, logistics costs will decrease to an equivalent of 16%-18% of GDP; ranking 45th or higher according to the LPI index in the world

By 2050, the contribution of the logistics service industry to GDP will reach 12%-15%; The average annual growth rate of the logistics service industry will reach 10%-12%; The rate of outsourcing logistics services will reach 70%-90%; logistics costs will reduce to the equivalent of 10%-12% of GDP; ranking 30th or higher according to the LPI index in the world.

To achieve the goal, the Ministry of Industry and Trade plans to perfect legal institutions, improve the business investment environment, encourage economic sectors to participate in developing logistics services, innovate planning, promote investment in infrastructure construction to develop Vietnam's logistics services in a synchronous and modern direction.

Develop the logistics market, improve competitiveness for enterprises, promote linkages among economic regions, economic corridors, between region and international to ensure sustainable growth, while improving quality and greening logistics service activities based on digital platforms. Promote digital and green transformation in the field of logistics services. At the same time, enhance the role of associations and nuclear enterprises in the field of logistics services, promote the formation of modern supply chains, develop a variety of value-added logistics services to meet the domestic and international demand of customers...

By Ngoc Linh/ Binh Minh

Related News

Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

VCN - Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Quang Ninh Customs sees revenue boost of nearly VND 900 Billion from new enterprises

Quang Ninh Customs sees revenue boost of nearly VND 900 Billion from new enterprises

VCN - Efforts to attract and support businesses have significantly boosted state revenue for the Quang Ninh Customs Department, thanks to a proactive approach in facilitating customs procedures.
Developing supporting industries for the billion-dollar export commodity groups

Developing supporting industries for the billion-dollar export commodity groups

VCN - Electronic products and components are one of export commodity groups with turnover exceeding one billion USD, but the supporting industry for this group is still modest.
Enforcement easures imposed on 11 tax-delinquent companies

Enforcement easures imposed on 11 tax-delinquent companies

VCN - The Ha Nam Ninh Customs Department has recently enforced a suspension of customs procedures on import-export goods for 11 companies with outstanding tax debts.

Latest News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.

More News

Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Read More

Your care

Latest Most read
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Mobile Version