Mekong Delta city to develop logistics network

Can Tho (VNA) – The establishment of a logistics centre in the Mekong Delta city of Can Tho will make active contributions to stable and sustainable economic development in the region, Vice Chairman of the municipal People’s Committee Truong Quang Hoai Nam said at a workshop held in the city on February 20.

The efficient operation of the centre will help minimise input costs and increase the added value of the region’s staple products, Nam said.

Ho Thanh Phong, Rector of Hong Bang International University in Ho Chi Minh City, said a research team from the university has conducted an evaluation of the logistics situation in Can Tho and the delta over the past two years, pointing out the field’s strengths and weaknesses.

Through which, the team has set out some solutions to improve the quality of logistics services, as well as proposed a set of criteria for evaluating the operational efficiency of logistics centres and designed a competitive logistics network, he added.

According to Nguyen Minh Toai, Director of the municipal Department of Industry and Trade, the demand for transporting export goods in the Mekong Delta ranges from 17 to 18 million tonnes per year. However, in fact, about 70 percent of these export goods have to be transferred to big ports in the southern economic hub of Ho Chi Minh City and Cai Mep Port in southern Ba Ria-Vung Tau province, which makes the transportation costs of businesses 10-40 percent higher.

Therefore, the development of logistics services and the establishment of a second-class logistics centre in Can Tho is an urgent requirement that also aligns with regional economic development, Toai said.

He added that the municipal People’s Committee has agreed with the policy of building the second-class centre at Cai Cui port, in the Hung Phu industrial park in Tan Phu ward, Cai Rang district, on 242.2 ha.

With 13 cities and provinces covering over 4 million ha and home to a population of over 18 million, the Mekong Delta plays a crucial role in the country’s socio-economic development.

The region contributes 40 percent to the nation’s agricultural production value, over 50 percent of rice output, 90 percent of rice for exports, 65 percent of seafood output, and 70 percent of fruit.

The gross regional domestic product (GRDP) growth reached 7.5 percent and the per capita GDP in 2018 was estimated at 2,217 USD. The total state budget collection in the 2016-2018 period was over 243.2 trillion VND (10.48 billion USD), contributing 18 percent to the country’s GDP. –VNA