The weaknesses of the logistics service must be overcome

	Vietnam develops logistics services for exports
	Logistics sector set to contribute 8%-10% to GDP by 2025
	Enhance the competitive capacity and development of logistics

Sir, the National Action Plan on enhancing competitiveness and development of logistics services in Vietnam by 2025 what is worth noticing?

This is the first time the logistics services sector has a national action plan on logistics comprehensively in order to bring the logistics industry - a high value added service sector to a new, modern and expanded service. According to this plan, by 2025, the contribution ratio of logistic services to GDP will be 8% -10%, service growth speed will be 15% -20%, logistic outsourcing ratio will reach 50% -60%, logistics costs reduce to 16% -20% of GDP, ranked by the national logistics capacity index (LPI) in the world at 50 upward.

The plan consists of 6 main groups of tasks, including: Perfecting policies and legislation on logistics services; Completing logistics infrastructure; Improving business capacity and service quality; Developing logistics services market; Training, raising awareness and quality of human resources. In which, will improve the policy, promote investment attraction in the field of logistics infrastructure; Strengthen cooperation with foreign partners to expand logistics infrastructure connections; Invest and Expand logistics infrastructure to connect Vietnam ports with neighboring countries; Focus on calling for investment in the construction of logistics centers type I in Hanoi and Ho Chi Minh City areas; Focus on calling for investment to build logistics center type II.

Currently, the cost of logistics services is still too high, accounting for 21% of GDP. To reduce this cost, according to you, what should enterprises do?

I assume that the cost of logistics services is counted on a wide range of services, such as: customs clearance services, domestic and international transportation costs; renting warehouse costs and expenses are considered as unofficial. Therefore, to reduce logistics costs, these costs must be reduced. Especially, for each enterprise which supplies chain service must have good service, reduces costs. In addition, the policies related to logistics services must be stable, procedures must be reformed and reduced. Such as specialized inspection procedure is currently a major barrier for businesses, resulting in the cost of logistics. There are import commodities of enterprises have to be moved from Ho Chi Minh City to Hanoi to carry out the specialized inspection. This takes a lot of waiting time, and a lot of enterprises’ costs.

Implementing Decision 200/QD-TTg, in the immediate future enterprises should focus on what contents, sir?

Logistics is an important service sector in the overall structure of the national economy, playing the role of supporting, linking and promoting socio-economic development, contributing to the value of goods, enhancing the compatitive capacity of the trade and economy. Developing logistics services to a high added value service sector, linking logistics services with the development of goods production, import, export and domestic trade. Action plan for the development of logistics services consists of a lot of specific details. In particular, the main task groups are detailed by 60 specific tasks for all four components of the logistics system in Vietnam, such as: Guidelines, policies for the development of logistics services and laws regulating activities; Logistics infrastructure; Logistics service providers and enterprises using logistics services. Therefore, through the conference issuing the implementation of Decision 200/QD-TTg of the Prime Minister, participating enterprises, and logistics experts have focused on solutions to quickly overcome the current weaknesses of the logistics service industry. This is a combination of logistics service providers, the link between service providers and logistics service users are importers and manufacturers because until now this does not yet demonstrate the dynamic role of logistics in the chain of supply chain management.

Logistics connecting global value chains

In my opinion, in order to overcome these weaknesses, we must increase cooperation and increase the outsourcing rate, as well as step up the supply of 3PL services (providing third-party logistics services or contract logistics), basing on multimodal transportation and working well with 2PLs (second-party logistics services), the basis is the actual carrier.

Thank you!