The logistics sector has long been considered the backbone of trade activities. However in Vietnam, that backbone seems to have a lot of problems. Among which, underdeveloped infrastructure is a major obstacle facing the sector.

According to insiders, besides loose connections among logistics components of warehouse, transportation and supporting services, the main factor leading to high logistics prices in Vietnam is underdeveloped infrastructure.

Logistics expenses currently account for 17 to 20% of a typical product’s cost structure, which is high compared to the world average. Eliminating the bottlenecks is what all firms want.

Underdeveloped infrastructure, especially roads and airlines, along with loose connections among means of transportation and logistic components have driven logistics prices up. Proper policies should be devised to handle the situation.

According to the Ministry of Industry and Trade, the ministry will recommend that the Government make appropriate changes in current policies to develop the logistics sector, including those related to cold storehouses, bonded warehouses and tariff schemes. More importantly, the ministry will coordinate with the Ministry of Transport to devise two masterplans, one for logistics and the other for trading activities in general.-