Finding new directions for Vietnam's logistics industry

"Vietnam Logistics - The Road Ahead" is the main theme of the Logistics Conference 2023, jointly organized by Investment Newspaper and SLP Vietnam Company on the morning of October 5 in Ho Chi Minh City.

Attending the event were about 300 delegates, including leaders of state management agencies, industry experts, domestic and foreign business associations, enterprises providing and using logistics services, manufacturing enterprises in many different fields currently renting factories and warehouses, investment consulting units, etc.

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Deputy Minister of Planning and Investment Tran Duy Dong speaks at the Logistics Conference 2023. Photo: Organizing Committee

Speaking at the conference, Deputy Minister of Planning and Investment Tran Duy Dong said that in recent years, the Vietnamese Government has actively directed the completion of mechanisms, policies and infrastructure to develop this important field; thanks to that, the capacity and ranking of Vietnam's logistics industry are being improved and tending to expand.

Specifically, according to the World Bank's ranking, Vietnam currently ranks 64th out of 160 countries in terms of logistics development and 4th in the ASEAN region after Singapore, Malaysia and Thailand. According to Agility's assessment, in 2022, Vietnam will rank 11th in the group of 50 emerging logistics markets globally. The annual growth rate of Vietnam's logistics industry is 14-16%, with a scale of 40-42 billion USD/year.

Accordingly, the number of logistics enterprises in Vietnam has also increased rapidly. To date, there are over 3,000 domestic transportation and logistics enterprises, and about 25 of the world's leading freight forwarding corporations operating to provide services from cargo handling procedures to tax payment or payment in Vietnam.

However, Deputy Minister Tran Duy Dong said that although Vietnam's logistics sector has developed rapidly and achieved positive results, in reality there are still some limitations and challenges. Recently, the Party and the State have issued a series of documents to resolve some bottlenecks, because logistics is identified as an important service sector in the overall structure of the national economy, playing a supporting, connecting and promoting role in socio-economic development of the whole country as well as each locality, contributing to improving the competitiveness of the economy.

Mr. Le Trong Minh, Editor-in-Chief of Investment Newspaper, also said that logistics services also need to be developed into a service industry that brings high added value, associated with the development of goods production, import and export and domestic trade, the development of transport infrastructure and information technology; at the same time, it is necessary to develop the logistics services market, focus on improving the competitiveness of logistics service enterprises; maximize the advantages of geographical location, strengthen connectivity to make Vietnam an important logistics hub in the region; develop logistics associated with sustainable supply chains, improve the quality of human resources, promote digital transformation and technology application.

However, many opinions at the conference said that, despite possessing great potential and having open opportunities, the logistics industry still has subjective limitations. If it is not promptly overcome and has appropriate adaptation measures, the Vietnamese logistics market will hardly be able to develop as expected.

In particular, high logistics costs due to unsynchronized connections, unscientific planning and lack of human resources, this certainly will not be a problem that can be solved overnight, but it cannot be delayed any longer.

At the same time, the impact of geopolitical tensions, inflationary pressures on consumer demand, “greening” declarations from more and more large corporations, scientific and technological advances being deployed around the world and the explosion of e-commerce are causing the traditional logistics industry to reshape.

Therefore, the Logistics Conference 2023 hopes to find good ideas to contribute to making the road ahead of the Vietnamese logistics market more spacious and smoother, making Vietnam a logistics center in the Asia-Pacific region.

Deputy Minister Tran Duy Dong hopes that the analysis, exchange and discussion of experts from policy-making agencies and leading enterprises will contribute useful information to the next roadmap as directed in Decision 221 of the Prime Minister, which is to prepare theoretical and practical bases for research and development of the Vietnam Logistics Services Development Strategy for the period 2025 - 2035, with a vision to 2045 and action plans.

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Experts participate in a discussion session at the Logistics Conference 2023. Photo: Hai Yen

Accordingly, in the first discussion session with the topic "Assessing Vietnam's logistics trends", experts will analyze the importance of having a system of clear and favorable policies and regulations in shaping the logistics industry in Vietnam; Government initiatives to promote a favorable environment for growth, attract investment and promote competitiveness; the impact of international trade agreements on Vietnam's logistics industry...

In addition, experts will analyze the ongoing global changes in the supply chain, emphasizing the relocation of production facilities; opportunities to attract FDI and become a preferred manufacturing and distribution center; challenges and strategies for Vietnam to take advantage of this global change and strengthen its position in the regional and global supply chain network.

On the other hand, the discussion session will also assess the development of Vietnam's logistics infrastructure, such as: Investment in the construction of roads, bridges, airports, seaports, and railways in recent years; planning and implementation of logistics centers; emphasizing the capabilities and capacities of service providers in the fields of ports, maritime transport and logistics, including freight forwarding, road transport, customs, cross-border operations, IDC/loading and unloading, warehousing, cargo storage and general logistics; identifying and discussing solutions to remove bottlenecks in logistics infrastructure development...

At the second discussion session with the theme “Creating opportunities for logistics development in the future”, experts will focus on discussing 4 issues: Identifying and finding solutions to challenges that limit logistics development such as incomplete infrastructure, limited access to technology and the need for a highly skilled workforce; the rapid development of e-commerce globally and its impact on the logistics industry, opportunities and challenges…; the importance of technology and innovation in promoting efficiency and competitiveness in the logistics industry; identifying the growing importance of sustainability and green supply chain practices in the logistics industry, a more circular and sustainable logistics ecosystem.

(According to VNA)

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