Increase the competitiveness of Vietnam’s logistics industry

NDĐT – The formation of a series of modern logistics service areas across the country is a clear testament to the attractiveness and development potential of Vietnam’s logistics service industry. However, for this industry to develop adequately, it still needs to remove many bottlenecks.

A corner of Nam Dinh Vu port – the most important hub for international and domestic transport of goods in the North.
Investment attraction
In 2018, Gemadept Group and Sao Do Group officially put the first phase of Nam Dinh Vu port project into operation. With a scale of 65 hectares, a total investment of VND 6,000 billion, a complex of seven general container berths – Nam Dinh Vu port with a total length of 1.5 km is the largest port in Dinh Vu, Hai Phong, which is the focal point for transport. load the most important international and domestic trade goods of the whole north.
Mr. Nguyen Thanh Phuong – General Director of Sao Do Group said that this group is investing in Nam Dinh Vu Industrial Park with the scale of 1,329 ha. In particular, there are many functional subdivisions such as industrial parks, ports and logistics, non-tariff areas, oil and gas ports and liquid cargo … All of these areas are like continuous, auxiliary services. each other, creating a complete business investment environment. “The development orientation of Hai Phong is to turn the city into a logistics center of the north. Nam Dinh Vu industrial park and especially Nam Dinh Vu port are located in very favorable position, qualified to form a large logistics center ”- Mr. Nguyen Thanh Phuong said.
Evidence from Nam Dinh Vu port shows that, now, businesses (businesses) are tending to invest in the logistics industry – one of the service sectors is assessed to have great potential in our country. Mr. Tran Thanh Hai – Deputy Director of Import and Export Department (Ministry of Industry and Trade) affirmed that if we heard little about the logistics story a few years ago, but now, the Prime Minister, ministries and branches are very interested. This issue has been expressed in legal documents such as Decision No. 200 / QD-TTg on approving the Action Plan to improve competitiveness and develop Vietnam logistics services by 2025.
Regarding logistics infrastructure, transport infrastructure has developed strongly, with many highways and big bridges being upgraded and built, focusing on connected, spreading works. create motivation for socio-economic development. Along with the process of opening and integration, the volume of goods produced, domestic circulation and import-export growth in recent years has grown strongly, which is the premise to promote the development of logistics services.
“In recent years, Vietnam’s logistics service industry has made rapid and strong development with a growth rate of up to 13 – 15%. This is one of the industries with great potential and plays an essential role in supporting various economic sectors, manufacturing industries and import-export trade activities ”- Mr. Tran Thanh Hai emphasized.
Sharing the same view, Mr. Nguyen Tuong, Deputy General Secretary of Vietnam Logistics Association (VLA), said that according to the 2018 World Bank’s Logistics Performance Survey (LPI) survey report , Vietnam was ranked 39/160 surveyed countries, up 25 places from 64 in 2016 and ranked third among ASEAN countries. This is the best result that Vietnam has had since the World Bank implemented the LPI ranking from 2007 to the present.
“At present, Vietnam is striving to continue increasing to 5-10 ranks, which is at rank 30, on par with developed countries” – Mr. Nguyen Tuong said and said that joining the new generation FTAs ​​such as Hiep The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with tariff preferences will boost export growth and then production will increase and create a large source of goods. This is a “golden” opportunity for Vietnam’s logistics industry to grow and vice versa, logistics development will be a lever for import and export.
Along with the uniformity of policies, Mr. Tran Thanh Hai shared, in recent times, investment activities, mergers and acquisitions (M&A) in logistics services have tended to develop strongly. International logistics giants, especially in Asia, have increased their investment in Vietnam such as Shibusawa Warehouse, SG Holdings (Japan), Aeroport De Paris (France) and DB Schenker (Germany) …
Not only Hai Phong, there are also modern logistics centers in Hanoi. Typically, Hateco logistics center in Sai Dong Industrial Park has an area of ​​nearly 13 hectares, applying 4.0 technology. This is an integrated logistics center, especially in e-commerce and express delivery. In addition, we also call for businesses that have import and export clearance goods, can bring goods to the center to perform customs services here.
Remove bottlenecks
Despite some achievements, the logistics industry is still facing many difficulties when the connection between infrastructure is weak. Besides, logistics costs in the field of transportation are still quite high. Not to mention, most logistics enterprises are small and medium enterprises, weak in capital, experience, and management skills. Therefore, Vietnamese logistics enterprises are still losing in competition, as well as not having conditions to reach out to the international market to rub …
In order for logistics to become a key economic sector, making a positive contribution to improving the competitiveness of the economy, Mr. Nguyen Tuong, Deputy General Secretary of VLA, said that in the coming time, ministries, sectors and localities It is necessary to promote the implementation of Decision No. 200 / QD-TTg approving the Action Plan to improve competitiveness and develop logistics services in Vietnam until 2025; Decree 163/2017 / ND-CP stipulates the Government’s logistics business.
However, the most important thing to develop the logistics industry, in addition to the policy mechanism, infrastructure, the efforts of related industries and levels, especially companies providing services. logistics services in order to improve service quality and reduce costs. Thereby, helping to improve the competitiveness of Vietnam’s import and export goods.
“To reduce logistics costs, there must be a close cooperation between manufacturers, importers, exporters and logistics service providers. Moreover, the level of customs clearance must be improved through the application of new technology and the capacity of service personnel “- Mr. Nguyen Tuong expressed.
From an enterprise perspective, Mr. Nguyen Thanh Phuong said that logistics development is an inevitable trend all over the world and now, in Vietnam, the room for developing this industry is very large, because, logistics infrastructure is still weak and logistics costs for the field of freight is still large. Therefore, businesses have plenty of room to invest in developing this field. In the coming time, to promote logistics industry, localities should invest more actively in infrastructure to connect ports and logistics centers; link with training schools specialized in logistics and especially must link with investors from abroad, professional in logisctics to provide businesses with management software, management processes …
Mr. Nguyen Manh Ha, Director of Nam Dinh Vu Port Joint Stock Company, added that at present, one of the points making the competitiveness of Vietnam’s export market is the relatively large logistics costs due to the imbalance. between different modes of transport. “The authorities need to study the planning issue, reduce the pressure on roads, find solutions on inland waterways and railways to reduce costs, improve logistics service quality as well as reduce time. cargo stall at ports and warehouses ”- Mr. Nguyen Manh Ha emphasized.