News & Event

Logistic in the process of international economic integration

With the total import and export turnover of more than 400 billion USD today and increasing, the economy is also growing well, the space for developing logistics industry in our country is still very large. This opens up opportunities to attract domestic private capital to invest in logistics infrastructure.

Potential and challenges

Recent statistics of Vietnam Logistics Enterprises Association show that there are more than 1,300 logistics enterprises operating in the country, mostly small and medium enterprises. Major logistic units include: Transimex Saigon Company, Saigon New Port Corporation, Gemadept, Vietrans, Vietfracht ...

According to the World Bank rankings, Vietnam currently ranks 64/160 countries in terms of logistics development and ranks 4th in ASEAN after Singapore, Malaysia and Thailand. Logistics services in Vietnam currently have a scale of about 20-22 billion USD / year, accounting for more than 20% of the country's GDP, much larger than processing and manufacturing industries and still have a lot of potential for development. With an annual growth rate of 16-20%, logistics is one of the fastest growing and most stable service sectors of Vietnam in recent years.

However, at present, Vietnamese business community is using logistics services with very high costs. National Director of the World Bank (WB), Ousmane Dione, analyzed, according to the proportion of GDP, Vietnam's logistics costs were 18%, nearly double that of developed economies and higher than global average of 14%. This is reducing the competitiveness of businesses and at the same time limiting the growth of the economy.

According to Mr. Le Duy Hiep, Chairman of Vietnam Logistics Services Association (VLA), the weakness of Vietnam logistics enterprises is that the service costs are not competitive, the quality of providing some services is not high. This comes mainly from the limitations of enterprises in terms of scale, capital, experience, management level, ability to apply information technology as well as human resources.

Of the total logistics costs currently related to the transport sector, about 59-60%. Logistics cost of Vietnam is currently one of the major barriers affecting the competitiveness of the economy. The urgent need now is to quickly take measures to reduce this cost, contributing to improving the competitiveness of Vietnamese goods.

Remove difficulties to develop

Although Vietnam has made great efforts in public investment in transport systems, but transport infrastructure, seaports, types of transport ... related to trade have not caught up with the growth rate. exports and the rapid increase in cargo flow.

According to Mr. Ousmane Dione, Vietnam's infrastructure investment is still not synchronized, focusing mainly on roads rather than other forms of multimodal transport. Vietnam should change its reliance on public investment to shift to the private sector. Need to set clear priorities for essential investment, which is the key to better connection system, creating momentum for logistics industry development.

On that basis, the Government has recently directed the construction of Cai Mep Logistics Center project and Cai Mep Ha general port project in Phu My town, Ba Ria-Vung Tau province. Accordingly, for the investment project to build Cai Mep Ha Logistics Center, Deputy Prime Minister assigned Ba Ria-Vung Tau People's Committee to instruct Hanoi General Export-Import Joint Stock Company - Geleximco Group on the first procedure. private, land lease, land allocation and construction investment in accordance with the law to soon deploy a logistics center to meet the requirements of economic and social development of Ba Ria-Vung Tau province and the region. Southern economic key.

The policy of exploiting Cai Mep Ha general and container port project (2,000m of berths for ships of 200,000 DWT, 100 ha of yards) is aimed at connecting and well implementing economic tasks associated with developing logistics efficiency. This project has a total area of 1,200 ha with a total estimated investment capital of VND 40,000 billion.

The representative of Geleximco Group said: “Implementing the Government's policy on planning and developing Vietnam's seaport system by 2020, Geleximco Group will conduct research, survey and project development. Cai Mep deep-water port in Tan Thanh district, Ba Ria-Vung Tau province - the first deep-water port in Vietnam with high economic efficiency, contributing to the province's development ”

Accordingly, Geleximco will maximize the available advantages to invest in developing modern seaport infrastructure of international standards; Development cooperation and new investment in domestic logistics system to serve service and trade activities. Not only bring thousands of jobs to local workers, socialization of logistic development will contribute to improving investment and business efficiency, promoting service quality; aiming to build a seaport system with synchronous technical infrastructure, transport services, professional and modern logistics on a national scale.

Economic experts said that with favorable natural conditions, especially with the investment of domestic enterprises such as Geleximco and appropriate investment incentive policies of the locality; Cai Mep Ha port complex promises to be a place to consolidate import and export goods as well as strongly develop maritime and logistics services of the Southern key economic region. Geleximco is currently one of the leading multidisciplinary private economic groups in Vietnam, has invested in investment sectors for social security such as industrial production, real estate and financial infrastructure. banking, training and information technology ...