Hanoi has a high demand for logistics services, yet the capital is currently short of professional purveyors, a conference held by the municipal Department of Industry and Trade heard on August 27.

Tran Nguyen Nam, deputy head of the Ministry of Industry and Trade’s Domestic Market Department, said a majority of logistics centres in Hanoi cover less than 10ha of ground, meaning they can only cater to the needs of local businesses.

In addition, shortcomings in employee qualifications, management methods and the legal framework, as well as the general course for development are hampering the sector’s growth, he noted.

Among logistics providers in Hanoi, private firms account for the majority but only a 20 percent market share.

Domestic businesses are finding it difficult to compete with multinational groups or companies backed by international investors. These businesses currently dominate the logistics market and set themselves apart from domestic logistics services through professional organisational structures and effective operations, conference participants were told.

As a response, the municipal department called on authorised agencies to develop policies facilitating the growth of logistics, promoting effective workforce training opportunities, and building a comprehensive development strategy for the sector.

Logistics firms were also urged to expand their operations and provide improved services at lower prices.

Nguyen Tuong, a representative from the Vietnam Logistics Business Association, said in the short term, Hanoi should initiate a logistics development project with a vision to 2030, including concrete targets and points of action to turn the city into a logistics hub for Vietnam.-VNA