Friday, June 14, 2024
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Home » Vietnam’s Logistics Costs Higher Than World’s

Vietnam’s Logistics Costs Higher Than World’s

by Jay Akara
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The Vietnam Logistics Business Association announced this at the Vietnam Logistics Forum 2023 with the theme ‘Logistics and Digital Transformation in the Mekong Delta’ taking place in Can Tho City yesterday with the participation of Head of the Central Economic Commission Tran Tuan Anh.

Speaking at the forum, Head of the Central Economic Commission Tran Tuan Anh said that Vietnam’s logistics industry has recently obtained strong developments, making important contributions to economic growth and job creation.

The number of businesses in the logistics industry is increasing and businesses have been expanding in scale. By the end of 2021, nearly 35,000 businesses were set up employing a total of more than 563,300 employees. FDI attraction in the logistics sector increased sharply; specifically, there were 365 projects in the period 2015-2019 and there were 203 projects from 2020 to 2022.

However, according to calculations by the Vietnam Logistics Business Association, Vietnam’s logistics costs average 16.8 percent to 17 percent of GDP, much higher than the general average of 10.6 percent in other countries in the world. Logistics infrastructure is still limited, lacking synchronization and connection, seaport planning is inadequate without major ports, and large regional and international logistics centers.

Mr. Tran Tuan Anh requested relevant units to study and later, they should have topics on deep evaluation of the current situation, conditions and orientations for developing effective and sustainable logistics activities in the context of the new situation. Their proposal will be submitted to the Politburo and the Secretariat for timely consideration and direction to remove difficulties and obstacles.

Thereby, it is hoped that the development of the logistics sector in general and logistics for the Mekong Delta region in particular, associated with improving the competitiveness and economic efficiency of the agricultural value chain in the region will be promoted more.

Source: Vietnam Net

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