Vietnam's logistics costs are too high compared to the world average.

Reduces competitiveness.

On December 2nd, in Can Tho City, the Ministry of Industry and Trade , in collaboration with the People's Committee of Can Tho City, organized the Vietnam Logistics Forum 2023 with the theme "Logistics and Digital Transformation for the Mekong Delta".

Speaking at the conference, Mr. Tran Tuan Anh, Member of the Politburo and Head of the Central Economic Committee, stated that Vietnam's logistics industry has actively implemented digital transformation in accordance with the Party's and Politburo's guidelines and the National Digital Transformation Program to 2025, with a vision to 2030, issued under Decision 749/QD-TTg in 2020 by the Prime Minister. Several large logistics enterprises have achieved digital transformation at level 3 or higher, such as Tan Cang Saigon, port companies under the Vietnam Maritime Corporation, Viettel Post, Vietnam Post, Gemadept, and foreign-invested enterprises in Vietnam such as DHL and FedEx. However, the logistics industry nationwide in general, and in the Mekong Delta in particular, still faces many limitations and its development has not kept pace with its conditions and potential.

Mr. Tran Tuan Anh, Member of the Political Bureau and Head of the Central Economic Committee, delivered a speech at the forum.

According to calculations by the Vietnam Logistics Services Business Association, Vietnam's logistics costs average 16.8-17% of GDP, significantly higher than the global average of 10.6%. Logistics infrastructure remains limited, lacking synchronization and connectivity; port planning is inadequate, and there is a lack of major regional and international-scale hub ports and logistics centers...

In particular, road transport remains the most popular mode of transport (accounting for up to 73% of goods transported in the first nine months of 2023). This is followed by inland waterway transport at 21.6% of total goods transported; sea transport accounts for only 5.2%, while rail and air transport remain at very low levels of 0.2% and 0.01% respectively. This results in high logistics costs, reducing the competitiveness of Vietnamese goods.

Vietnam's logistics costs average 16.8-17% of GDP, significantly higher than the global average of 10.6%.

According to Tran Tuan Anh, Head of the Central Economic Committee, Vietnam is currently actively implementing two important transformation processes: Digital transformation and Green transformation. Digital transformation is considered a groundbreaking new method to shorten the process of industrialization and modernization of the country and its various sectors, including logistics; simultaneously, digital transformation will also help promote the Green transformation process.

Therefore, a discussion is needed to clarify the current state of logistics development in Vietnam, linked to the digital transformation process nationwide and specifically in the Mekong Delta; this includes clarifying the achievements, existing causes, and limitations in order to address them, especially regarding institutions, mechanisms, and policies for logistics development.

Not yet developed adequately.

According to Deputy Minister of Industry and Trade Phan Thi Thang, with Vietnam's total import and export turnover reaching US$558.33 billion in the first 10 months of 2023, Vietnam has entered the top 10 emerging logistics markets in the world, with a projected compound annual growth rate of 5.5% for the period 2022-2027. The Mekong Delta region, which contributes approximately 50% of rice production, 95% of rice exports, 60% of fish exports, and 70% of fruit exports nationwide, has enormous potential and demand for logistics services. However, the infrastructure and capacity of the logistics service sector in the Mekong Delta remain limited, hindering its significant contribution to the region's socio-economic development.

Most export goods from the Mekong Delta have to be transported to major ports in Ho Chi Minh City and Cai Mep port, which significantly increases transportation costs for businesses.

Also at the forum, Mr. Nguyen Van Hieu, Secretary of the Can Tho City Party Committee, informed that the growth rate of logistics services in Can Tho reaches 10-15% per year. The city is calling for investment to develop the port system and logistics centers, aiming to make Can Tho a modern economic center and an important link in the transshipment of goods in the region. However, some limitations include the fact that the Can Tho seaport cluster has not been effectively exploited due to the lack of synchronized investment in warehousing and logistics systems. The channel for large-tonnage ships entering the Hau River currently does not meet the requirements for complete operation of ships with a tonnage of 10,000 to 20,000 tons. Most export goods have to be transported by road to major ports in Ho Chi Minh City and Cai Mep port, resulting in higher transportation costs for businesses, ranging from 10-40% depending on the route…

Furthermore, Can Tho lacks many large enterprises specializing in logistics services; its logistics service supply chain capacity is weak; and logistics costs are high, affecting the competitiveness of goods. Moreover, there are no foreign logistics companies participating in the market providing services in the Mekong Delta, with only a few domestic companies, mainly from Ho Chi Minh City.

At the Vietnam Logistics Forum 2023, the Ministry of Industry and Trade also acknowledged many opinions and solutions from ministries, businesses, and localities aimed at gradually overcoming difficulties and optimally utilizing the benefits of digital transformation. This will help enhance the competitiveness of Vietnam's logistics service industry in general and the Mekong Delta region in particular.

Source link: https://thanhnien.vn/chi-phi-logistics-cua-viet-nam-qua-cao-so-voi-binh-quan-the-gioi-18523120221254492.htm