Delegates attending the 6th Regional Logistics Forum

Potential and advantages

Central Vietnam is considered the "center of the center" on the East-West Economic Corridor (EWEC) - an international road route of more than 1,450 km connecting Myanmar-Thailand-Laos-Vietnam, ending at the seaports of the Central region. In particular, Lao Bao international border gate (Quang Tri), Cau Treo (Ha Tinh), Cha Lo ( Quang Binh ), and seaports... are playing the role of important "transit points" for goods. Hue City in particular is located at the strategic intersection between the North-South and East-West axes connecting with EWEC to Laos, Thailand, Myanmar; at the same time, it is located on National Highway 1A and the North-South Expressway, has a trans-Vietnam railway... and economic zones, industrial parks, Chan May seaport are destinations for businesses, industrial corporations and many large international cruise lines, creating conditions for Hue to develop logistics associated with tourism...

With the above advantages, the formation of new generation transport corridors is not only an inevitable requirement for the North Central and Central Coast regions, but also a "strategic lever" to help this region become a dynamic logistics center, effectively connecting with the international market.

Export goods via Chan May port

However, in recent times, EWEC has not yet fully exploited its role due to the lack of synchronous connection infrastructure, limited capacity of logistics enterprises in the region and lack of distribution centers along the route. Therefore, investing in and upgrading the new generation transport corridor with the mindset of integrating physical and digital infrastructure, multimodal connection and modern management model is considered the key to "awakening" this potential.

Cross-border logistics bottlenecks

Many experts shared at the forum that, despite its great potential, cross-border logistics in the Central region has not yet developed to its full potential. The biggest challenge is the lack of and weak infrastructure. Roads connecting seaports are not yet complete, many national highways are degraded, while the Cam Lo - Lao Bao and La Son - Tuy Loan expressways are still in the process of completion. The system of warehouses and centralized logistics centers is still limited, leading to high transportation costs.

Warehouse, goods and logistics systems are increasingly developing in the Central seaport area.

Another difficulty comes from complicated customs clearance and specialized inspection procedures, causing congestion at the border gate. Many businesses have reported that the long waiting time for inspection makes agricultural and aquatic products susceptible to damage, reducing their competitiveness. Compared to international transport routes through Bangkok or Singapore, logistics costs in the Central region are 10-15% higher, making many businesses hesitant to choose.
Mr. Nguyen Duy Minh, Vice President of the Vietnam Logistics Service Enterprises Association analyzed: "The Central region has a golden position on the East-West economic corridor, but for logistics to truly develop, it is necessary to reform administrative procedures more strongly and shorten customs clearance time. If logistics costs are still higher than competing routes, businesses will find it difficult to choose the Central region."

In addition, most logistics enterprises in the region are still small-scale, lacking connections, and lacking the capacity to provide full-package services, but mainly providing individual transportation services. This prevents the Central region from becoming a major logistics center in the region.

Experts say that the Central region needs a comprehensive cross-border logistics development strategy and regional connectivity. First of all, it is necessary to complete strategic transport infrastructure: speed up the progress of the Cam Lo-Lao Bao expressway, upgrade National Highway 9, build large logistics centers, complete in Quang Tri, Hue City, Da Nang City linked to border gates and seaports.
At the same time, it is necessary to strongly reform customs procedures, apply the “national single window, ASEAN single window” mechanism, and digitize the entire customs clearance process to shorten time and costs for businesses. Special preferential policies on taxes, fees, and land are also expected to attract investment in modern logistics infrastructure, cold storage, and bonded warehouses.

In addition, businesses must play a key role. Large logistics corporations should be encouraged to invest and cooperate with local businesses, thereby forming important “links” in the cross-border supply chain.

Export goods have grown recently.

Mr. Do Thai Duong, Project Director of LEC Group, shared that the potential of the seaports in the Central region is huge and if there is synchronization in infrastructure and policies, the Central region can completely become the logistics center of the entire Mekong Sub-region. In addition, developing green logistics, digital logistics to improve sustainability and competitiveness, in line with international commitments, is also very suitable and a trend in this region. According to the Project Director of LEC Group, currently, the logistics market in Hue is in the development stage, not yet fully exploiting the potential of Chan May - Lang Co Economic Zone in particular and Hue City in general. To improve the competitiveness of this activity in Hue City, it is necessary to have the support of the business community and appropriate policies from the Central ministries and branches...

Mr. Nguyen Van Phuong, Deputy Secretary of the City Party Committee and Chairman of the Hue City People's Committee, said that the 6th Regional Logistics Forum is an important opportunity for the Central provinces and cities, together with the business community and investors, to build a cross-border logistics development strategy with regional connectivity. Hue City wishes to become a new logistics center, playing the role of a gateway for goods from the Central region and the whole country to the region.

Article and photos: Minh Van

Source: https://huengaynay.vn/kinh-te/logistics-xuyen-bien-gioi-khai-mo-dong-luc-moi-cho-mien-trung-156982.html