Shortage of key logistics centers in the Mekong Delta

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Representatives of provinces and businesses attended the workshop

As one of seven large state-owned enterprises, Deputy General Director of Saigon Newport Corporation Bui Van Quy said improving the leading enterprise in port operation, logistics services and marine economic sectors, the Corporation has operated the 18 largest seaports from North to South in Vietnam, accounting for 51% of the country’s container operation market share.

“In addition to port services, Saigon Newport Corporation is also a provider of logistics services such as warehousing services with over 1 million m2 of warehouses, water and land transport with over 1,000 trailers, small trucks and 110 barges, customs and marine services and other services,” the Deputy General Director said.

In the Mekong Delta, Saigon Newport Corporation is the market leader in providing diversified services.

At the workshop, experts said that the Mekong Delta region plays a key role in the socio-economic development of the southern region and the whole country. Director of VCCI Can Tho, Nguyen Phuong Lam said that more than 95% of rice, 70% of fruit and 65% of seafood of Vietnam is exported from the Mekong Delta.

However, the development of the logistics system in the Mekong Delta is facing difficulties such as the lack of investment, high transportation costs due to the shortage of key logistics centers and systems of satellite centers, empty container yards, the limited warehouse system in ports, and road and port traffic systems, causing a backlog of logistics and congestion in the goods supply chain.

Deputy General Director of Saigon Newport Corporation Bui Van Quy offers solutions to improve the seaport system.

The representatives also pointed out those bottlenecks in the development of logistics infrastructure, which are a major obstacle for the whole region. If the infrastructure is not improved, it will be difficult to develop other services, including attracting foreign investment.

The participants provided directions for the improvement of local logistics centers, and supported businesses and customers in grasping market development trends, and plans to save logistics costs through solutions to connect and enhance the port system in the Mekong Delta amid unpredictable fuel prices.

In order to develop logistics services as a regional connection center in Can Tho, Mr. Huynh Thanh Su, Deputy Director of the Department of Industry and Trade of Can Tho city, said that logistics infrastructure in Can Tho and in the Mekong Delta is still limited. Therefore, the shipping time for exports is long, increasing costs and reducing the competitiveness of enterprises.

"Can Tho is executing logistics centers, so the city wants investors to build the logistics centers to server exporters not only for the city but also for the whole region," Mr. Huynh Thanh Su said.

Businesses believe that the companionship of Saigon Newport Corporation, state agencies, authorities and associations in the Mekong Delta plays an important role, in contributing to mobilizing resources boosting the Mekong Delta logistics system, improving the competitiveness of goods in the supply chain, promptly responding to customers' demand, increasing income for producers and strongly developing the economy in the region, especially for exports.