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Logistics promises many opportunities for rapid growth in 2023
19/06/2024

Deputy Minister of Industry and Trade Do Thang Hai said that logistics is one of the fastest growing and most stable industries with an average growth of 14-16% per year, contributing to GDP from 4 to 5%. In the context of deepening international economic integration and the strong process of shifting and restructuring international supply chains, Vietnam's logistics industry is considered as a potential economic industry with great opportunities. development in 2023.

Opportunities and challenges are intertwined

Deputy Minister of Industry and Trade Do Thang Hai said that in the report on the emerging market logistics index in 2022 released by Agility, Vietnam ranked 11th in the ranking of the top 50 countries leading the emerging logistics market. ranked 4th in Southeast Asia. The development of the logistics industry is associated with important achievements in economic development, thanks to the promotion of opening up, international economic integration, and active participation in Free Trade Agreements (FTAs) with Vietnam. extensive and comprehensive commitments, bringing many opportunities to the Vietnamese business community in general and logistics businesses in particular.

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Logistics is likely to continue to grow rapidly in 2023

In addition to the advantages, Deputy Minister Do Thang Hai also shared, Vietnamese businesses when exchanging trade with the world in general and with the Europe - America region currently still face many difficulties. challenges, including problems such as limited infrastructure, lack of synchronization, especially transport infrastructure and logistics infrastructure such as warehouses and logistics centers; logistics enterprises lack information; lack of links, outdated technology application... These are huge limitations that make Vietnam's logistics costs always very high, a burden for businesses.

Agreeing with the above point of view, Ms. Vo Thi Phuong Lan - Vice President of Ho Chi Minh City Logistics Association. According to Ho Chi Minh City (HLA), currently, the average logistics cost of Vietnam is at 16.8-17% of the value of goods. However, in fact, there are businesses that have to pay up to 20-25% for this cost.

In order to reduce logistics costs for businesses, Ms. Vo Thi Phuong Lan said that import-export businesses should change their sales conditions from FOB to CIF to be more proactive in using appropriate shipping schedules. If possible, look for a reputable competitive supplier to save freight costs and risks in the transportation process.

Make Vietnam an important logistics hub in the region

Assessing the development of the logistics industry in 2023, Mr. Tran Thanh Hai - Deputy Director of the Import-Export Department, Ministry of Industry and Trade said that the Government and ministries and branches are especially interested in developing logistics to bring Vietnam to the next level. become an important logistics hub in the region. Deputy Prime Minister Le Minh Khai has just signed Resolution No. 163/NQ-CP dated December 16, 2022 on promoting synchronous implementation of key tasks and solutions to improve competitiveness and develop services. At the same time, many localities have now developed plans and master plans on logistics development.

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Import and export activities at Hai Phong port

In Resolution No. 163/NQ-CP clearly stated, the point of view is to develop logistics services into a service industry that brings high added value, linking logistics services with the development of goods production, import and export and trade. domestic trade, development of transport infrastructure and information technology; developing the logistics service market, focusing on improving the competitiveness of logistics service enterprises; make the most of its geographical advantages, 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.

In particular, Resolution No. 163/NQ-CP assigns the Ministry of Finance to continue to review and remove obstacles on tax policies, fees, charges and service prices to create favorable conditions for service providers. logistics services; assume the prime responsibility for, and coordinate with ministries and branches in, promoting trade facilitation activities, reforming customs procedures, reducing and simplifying specialized inspection procedures, standardizing dossiers, and implementing commitments in the WTO Trade Facilitation Agreement.

The Ministry of Industry and Trade urges ministries, branches, localities and associations to synchronously and drastically implement solutions, mechanisms and policies to implement synchronously and effectively the Action Plan to improve competitiveness. compete and develop logistics services in Vietnam by 2025 according to Decision No. 200/QD-TTg and Decision No. 221/QD-TTg....

"The next advantage is that Vietnam's commercial production is recovering and increasing very well. On December 15, Vietnam's total import-export turnover reached a record $700 billion for the first time. 5 years ago in 2017, Vietnam only reached the figure of 400 billion USD… This is a great advantage because the volume of goods produced, domestically circulated and transacted with international trade increases, which will drag on according to the needs of using logistics services" - Mr. Tran Thanh Hai emphasized.

 

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