Vietnam is in the top 10/50 emerging logistics markets in the world.

Economic growth and employment

Speaking at the forum, Mr. Tran Tuan Anh - Politburo member, Head of the Central Economic Commission - said that Vietnam's logistics industry has had strong development in recent times, making important contributions to economic growth and job creation; businesses are increasing in number and expanding in scale.

Mr. Tran Tuan Anh - Politburo member, Head of the Central Economic Commission - speaking. Photo: Quang Phuong — Mr. Tran Tuan Anh - Member of the Politburo , Head of the Central Economic Commission - speaking. Photo: Quang Phuong

In 2023, according to the World Bank's ranking, Vietnam's Logistics Performance Index (LPI) ranked 43rd out of 139 ranked economies, a significant improvement compared to 53rd in 2010. In the region, Vietnam is in the top 5, ranked the same as the Philippines and behind Singapore, Malaysia, and Thailand.

Currently, Vietnam is in the top 10/50 emerging logistics markets in the world according to the emerging market index of the Agility Logistics and Transportation Services Provider. In terms of international logistics opportunities, Vietnam ranks 4th in the world and is considered the country with the leading logistics development potential in Southeast Asia.

Leaders visiting the forum. Photo: Quang Phuong

However, the logistics industry in the country in general and the Mekong Delta in particular still has many limitations, not really commensurate with the conditions and development potential.

According to calculations by the Vietnam Logistics Services Association, Vietnam's logistics costs currently average 16.8 - 17% of GDP, much higher than the world average of 10.6%. Logistics infrastructure is still limited, lacking synchronization and connectivity; seaport planning is still inadequate, there are no major ports...

The connection between transport modes and water transport capacity is still low; road transport is still the most popular mode of transport (accounting for 73%), followed by inland waterway transport with 21.6% of total freight volume while sea transport accounts for only 5.2%, rail 0.2% and air 0.01%; this makes logistics costs high, reducing the competitiveness of Vietnamese goods.

The World Bank's assessment report also shows that the Vietnamese logistics service industry still has many limitations in terms of the capacity of logistics service providers. Digital transformation of most logistics enterprises is still in its early stages and has not received adequate investment attention.

Developing efficient and sustainable logistics

According to Head of the Central Economic Commission Tran Tuan Anh, the Vietnam Logistics Forum 2023 is one of the outstanding activities to contribute to effectively putting the policies and guidelines of the Party, National Assembly, and Government on logistics development into practice. In particular, this year's forum is held in Can Tho City - the trading center and logistics hub of the Mekong Delta region.

Forum scene. Photo: Quang Phuong — View of Vietnam Logistics Forum 2023. Photo: Quang Phuong

Here, the Head of the Central Economic Committee also requested the Central Economic Committee to coordinate with the Ministry of Industry and Trade and related units to research and develop a special topic to deeply assess the current situation, conditions and orientations for developing effective and sustainable logistics activities in the new context to submit to the Politburo and the Secretariat for timely consideration and direction to remove difficulties and obstacles.

At the same time, the Party Committee of the Ministry of Industry and Trade and the leaders of the Ministry of Industry and Trade preside over and coordinate with relevant ministries, branches and localities to urge, monitor and evaluate the implementation of Resolution No. 163/NQ-CP, focusing on the results of developing scenarios and response plans, directing and operating logistics activities to better serve domestic production and circulation of goods and exports.

Speed up the progress of building the Project to build a strategy for developing Vietnam's logistics industry to 2035, with a vision to 2045, in which attention should be paid to integrating contents related to digital transformation of the logistics industry.

In particular, localities in the Mekong Delta region in particular and localities in the whole country in general, coordinate with ministries and branches to implement assigned tasks to develop a synchronous local logistics system; review and adjust planning and economic structure in the locality; develop and implement policies to support effective logistics services, suitable to the socio-economic characteristics of the locality.

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