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Developing logistics services to improve the competitiveness of goods

With the import and export turnover of Vietnam increased rapidly, but according to many experts, the shortcomings of logistics activities in Vietnam have significantly affected the competitiveness of enterprises.

Transportation costs account for nearly 60% of logistics costs

Evidence of difficulties in logistics activities in Vietnam over the past time, Ms. Nguyen Minh Thao, Head of the Business Environment and Competitiveness Department, Central Institute for Economic Management said that only expenses transportation accounts for nearly 60% of logistics costs, of which, road transport is the most expensive mode of transport, not to mention other unofficial expenses.

Along with that, Ms. Thao also pointed out limitations on business conditions, specialized management which are costly for enterprises, pushing up service prices and reducing the competitiveness of the logistics industry over time. .

For example, specialized management for quarantine, Ms. Thao said, now many countries have applied the verification or applied risk management but in Vietnam, there are only a few areas such as Food safety, for example .. most still do not apply.

"With 100% of shipments that have to be done like that, it clearly extends the time of very large enterprises," said Head of Business Environment and Competitiveness Department, Central Institute for Economic Management. .

As a center of ASEAN region, the openness of high economy, import and export account for an important proportion in the economy, Vietnam has great potential to develop logistics services.

However, until now, this industry has not developed as strongly as expected. High cost, enterprises can only meet each stage instead of the entire logistics service is the factor that makes the competitiveness of Vietnamese logistics service businesses still inferior to foreign enterprises.

According to Vietnam Logistics Association, there are about 3,000 enterprises nationwide providing logistics services but mainly small and medium enterprises, capital capacity is weak so it is difficult to invest in large scale.

Mr. Le Duy Hiep, Chairman of Vietnam Logistics Association, said that according to the Association's calculations, Vietnam's logistics costs are equivalent to about 16.8-17% of GDP higher than some regional countries like Thai. Lan is about 14% or like Malaysia about 14-15% ...

"Logistics services are increasingly involved in economic and social life in all aspects of production and business processes and in the supply chain, import and export ... so it becomes more important for each business, ”said Hiep.

Improve quality to create competitive advantage

According to the World Bank (WB) on Vietnam's logistics capacity index, it has increased from 64/160 countries to rank 39 in the past year, but, according to experts, besides completing policies logistics law, must improve the competitiveness of logistics infrastructure, improve service quality to create a competitive advantage to promote the development of supply chains to support production and consumption domesticization and import-export, promoting the socio-economic development of the whole country.

Ms. Nguyen Minh Thao, Head of the Business Environment and Competitiveness Department acknowledged, businesses with foreign investment capital (FDI) in Vietnam only had 3% but they accounted for 80% of logics services, Therefore, if we do not apply technology, it will be difficult to integrate with the world

"In order not to lag behind, it requires us to improve technology because if we don't invest technology, we won't go faster then we will lag behind," Thao added.

At the recent National Conference on Logistics, Minister of Industry and Trade Tran Tuan Anh also stated that the growth of international and domestic trade in recent years has grown steadily at a high level, showing that our country has Very favorable conditions for developing this industry.

According to the Minister, at present, it is necessary to take into account the scale of import and export at over 500 billion USD to see our "cake" about logistics is big. Therefore, the development of the logistics service industry must now aim at a dual goal, besides improving the mechanism for development and urgently cutting costs, improving competitiveness because logistics is the industry that closes. important contribution to the economy, especially in the context of high open economy today.

Proposing ideas to improve competitiveness for this service sector, Minister Tran Tuan Anh proposed ministries and localities to implement more strongly the Decision 200 / QD-TTg of the Prime Minister approving the Plan action to improve competitiveness and develop Vietnam logistics services.

Besides, the Minister also noted when developing when the Planning Law must pay attention to the connection of transport infrastructure with logistics centers to have comprehensive planning in developing this field.