Illustrative image. (Photo tapchigiaothong.vn) Hanoi (VNA) - The Ministry of Industry and Trade (MoIT) has drafted an actionplan to lower logistics costs to 18 percent of the country’s gross domesticproduct (GDP) by 2020.
It also targeted to bring Vietnam into the top 50 countries with developedlogistics services.
The costs of logistics currently are about 20 to 25 percent of the GDP,compared with the average rates of seven to 10 percent in developed countries.
The firstaction plan is expected to improve the country’s competitiveness and helpdevelop the logistics service sector.
Theministry said this plan aims to clarify policies for the sector’s development,thus creating momentum for businesses--especially importers--to increase theircompetitiveness.
TranThanh Hai, deputy director of the ministry’s Import-Export Department said Vietnam’slogistics development has been modest, as the number of firms operating in thesector is small at 1,300-1,500. More than 70 percent of the businesses aresmall-and-medium sized firms with average capital of about 7 billion VND (320,000USD) and scope usually confined to local or nearby markets.
Thesector has contributed only 2-3 percent to the country’s GDP.
Inaddition, the rate of outsourcing has been low, thus forcing local exportersand traders to implement logistics services themselves.
Hai saidthat in the integration process, multinational logistics firms hold asignificant market share in providing logistics services in Vietnam. Localcompanies have participated in only simple works in the whole logistics processchain.
“Thecountry’s logistics effectiveness has been low, while available resources havenot been fully exploited,” he added.
Statisticsshowed that the cost for transporting goods from HCM City to Hai Phong is 4million VND while that from Japan to HCM City with a longer distance is onlyseveral dollars.
He said the action plan will focus on short- and mid-term solutions to improvethe logistics sector in the next 7-8 years.
It will complete legal frameworks on logistics as well as policies to supportthe sector.
Theinfrastructure for the logistics services--such as seaports, stations andwarehouse systems--will also be improved to transform Vietnam into alogistics hub of the region.
The ministry plans to enhance ability for businesses providing the logisticsservices to catch up with international development trends. It will payattention to training human resources in the sector.
“We arelacking big local firms with long term investment in the logistics sector.Logistics is an industry with high profitability. Many businesses have not hadresources to exploit the services, though they have seen its profitability,” hesaid.
Theaction plan will encourage leading and big firms investing in the sector, thusattracting attention from the business community.
He alsosaid Vietnamese companies can outsource FDI firms to supply the logisticsservices and getting lessons on their management skills.-VNA
It also targeted to bring Vietnam into the top 50 countries with developedlogistics services.
The costs of logistics currently are about 20 to 25 percent of the GDP,compared with the average rates of seven to 10 percent in developed countries.
The firstaction plan is expected to improve the country’s competitiveness and helpdevelop the logistics service sector.
Theministry said this plan aims to clarify policies for the sector’s development,thus creating momentum for businesses--especially importers--to increase theircompetitiveness.
TranThanh Hai, deputy director of the ministry’s Import-Export Department said Vietnam’slogistics development has been modest, as the number of firms operating in thesector is small at 1,300-1,500. More than 70 percent of the businesses aresmall-and-medium sized firms with average capital of about 7 billion VND (320,000USD) and scope usually confined to local or nearby markets.
Thesector has contributed only 2-3 percent to the country’s GDP.
Inaddition, the rate of outsourcing has been low, thus forcing local exportersand traders to implement logistics services themselves.
Hai saidthat in the integration process, multinational logistics firms hold asignificant market share in providing logistics services in Vietnam. Localcompanies have participated in only simple works in the whole logistics processchain.
“Thecountry’s logistics effectiveness has been low, while available resources havenot been fully exploited,” he added.
Statisticsshowed that the cost for transporting goods from HCM City to Hai Phong is 4million VND while that from Japan to HCM City with a longer distance is onlyseveral dollars.
He said the action plan will focus on short- and mid-term solutions to improvethe logistics sector in the next 7-8 years.
It will complete legal frameworks on logistics as well as policies to supportthe sector.
Theinfrastructure for the logistics services--such as seaports, stations andwarehouse systems--will also be improved to transform Vietnam into alogistics hub of the region.
The ministry plans to enhance ability for businesses providing the logisticsservices to catch up with international development trends. It will payattention to training human resources in the sector.
“We arelacking big local firms with long term investment in the logistics sector.Logistics is an industry with high profitability. Many businesses have not hadresources to exploit the services, though they have seen its profitability,” hesaid.
Theaction plan will encourage leading and big firms investing in the sector, thusattracting attention from the business community.
He alsosaid Vietnamese companies can outsource FDI firms to supply the logisticsservices and getting lessons on their management skills.-VNA
VNA
