Vietnam Logistics Forum spotlights regional economic links

Quang Ninh (VNA) – The sixth Vietnam Logistics Forum convened in the northern coastal province of Quang Ninh on December 12, with businesses and authorities exchanging ideas and measures to increase investment in green logistics and connections among economic regions.

At the forum, Deputy Prime Minister Vuong Dinh Hue said cooperation for the development of green logistics services is a top priority, urging ministries, sectors, localities, business associations, and enterprises to work together for better results and competitiveness.

He noted that Vietnam has implemented various mechanisms and policies to encourage investors to take part in the building of logistics infrastructure and production chains.

The official recommended a range of measures regarding the growth of the sector, including applying advanced technologies, forming regional links, and facilitating trade among ASEAN member states.

As heard at the event, Vietnam has signed 14 free trade agreements to date, opening a larger window for partnerships and creating favourable conditions for foreign businesses to invest in its logistics.

In 2018, the local logistics sector, now consisting of some 3,000 enterprises, is estimated to grow between 12 and 14 percent. According to a report from the World Bank (WB) released on July 24, Vietnam’s position in the Logistics Performance Index (LPI) for 2018 rose 25 levels compared to 2016, jumping to 39th place among 160 surveyed countries.

Vietnamese firms mainly provide domestic logistics services such as transport service, airport, seaport, warehouse services, and cargo handling services. A few of them also provide international logistics services by acting as agents for foreign enterprises.

Nighty percent of the total number of Vietnamese logistics companies have registered capital of under 10 billion VND (430,000 USD), and only five percent have more than 20 billion VND (860,000 USD). Just over 360 firms hold memberships in the Vietnam Logistics Business Association (VLA), reflecting a low level of connection among the group.

Currently, many localities have yet to consider developing logistics as a basic sector in support of other sectors. As a result, many locations hold potential, but lack funding for logistics development. To address these shortcomings, relevant agencies are working on administrative reforms that will cut the number of procedures and promote e-governance practice.

VLA Vice President Dao Trong Khoa said that trade promotion and the expansion of international cooperation in logistics have helped the sector maintain its growth momentum. –VNA