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

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