There is still plenty of room to reduce logistics costs.

On the morning of June 8th, Minister of Transport Nguyen Van Thang continued his questioning session before the National Assembly on issues related to the transport sector. Before the end of the questioning session on the afternoon of June 7th, five deputies had asked questions to Minister Thang, and three other deputies had debated with the Minister.

During the questioning session on the afternoon of June 7th, participating in the debate, delegate Nguyen Lan Hieu (Binh Dinh delegation) mentioned that current logistics costs are very high, despite the Minister's claim of reduction. According to Mr. Hieu, reducing this burden requires decisive action at each stage.

"Even small issues, if given attention, can be addressed more effectively, reducing costs and improving efficiency. For example, the number of takeoffs and landings at Tan Son Nhat Airport after repairs is lower than before. Before repairs, there were an average of 44-46 takeoffs and landings per hour; now it's down to only 40-42," Mr. Hieu said.

Delegates argued that spending trillions of dong on upgrading airport runways is wasteful, and therefore, the Minister should pay attention to reducing logistics costs in Vietnam.

Dialogue - Minister of Transport: There is still much room to reduce logistics costs. — Minister of Transport Nguyen Van Thang answers questions (Photo: Quochoi.vn).

In response, Minister Nguyen Van Thang stated that, according to international practice, logistics costs are currently compared to GDP.

In 2022, Vietnam's logistics costs were 16.8% of GDP, still high compared to the national average. However, this figure is close to the minimum target set by the Government in Vietnam's logistics development strategy (by 2025, logistics costs should account for 16-20%). Vietnam also ranked 43rd out of 139 countries participating in the ranking for this index.

"These are just initial results to strive for, and there is still much room for further reductions in logistics costs," Mr. Thang said.

The Minister of Transport pledged to continue striving and coordinating with relevant ministries and agencies to focus on solutions to reduce these costs, such as developing synchronous transport infrastructure and investing in the development of inland ports and logistics centers.

Regarding the issue raised by the delegate concerning the lower landing frequency at Tan Son Nhat airport after the upgrade, the Minister of Transport acknowledged that this information is accurate.

Mr. Thang emphasized that as Tan Son Nhat's runway deteriorates, it needs upgrading to increase transport capacity and ensure safe takeoffs and landings. However, the Minister stated that the operating standards after the runway upgrade are higher than before. A frequency of 44-46 takeoffs and landings per hour would overwhelm Tan Son Nhat's passenger terminal and connecting runways, thus requiring a reduction to alleviate congestion.

Taking note of the delegates' opinions, the Minister stated that once Terminal 3 is completed, the operating frequency will be increased.

Dialogue - Minister of Transport: There is still much room to reduce logistics costs (Figure 2). — National Assembly Chairman Vuong Dinh Hue added further answers regarding logistics costs (Photo: Quochoi.vn).

In further response to this question, National Assembly Chairman Vuong Dinh Hue also clarified that the responsibility for state management of logistics belongs to the Ministry of Industry and Trade, while the Ministry of Transport is responsible for investing in and organizing multimodal transport.

"Currently, the contribution of logistics costs to GDP is low, but logistics costs as a percentage of production costs are high. This is a paradox," the Speaker of the National Assembly said.

Further debating on reducing logistics costs , delegate Nguyen Anh Tri (Hanoi delegation) argued that it is necessary to improve and upgrade Vietnam's railway system to create a core, pillar, and backbone transportation system that runs throughout the country. This would then connect domestic and international markets.

"This is a very big and difficult issue, but it should be done and must be done," the delegate said, while also conveying this opinion to the Deputy Prime Minister and the Prime Minister.

In response, Minister Nguyen Van Thang respectfully thanked and acknowledged the delegates' opinions, and stated that the Ministry of Transport will continue to strive to do its best in investing in infrastructure and paying attention to connecting the transport network.

The Minister stated that the Prime Minister has just signed and issued the Airport Development Plan, giving us sufficient legal basis to mobilize investment resources for the development of synchronous infrastructure and reduce logistics costs .

Source