Improving competitiveness and developing Vietnam Logistics Services

The forum also had the participation of leaders of the Ministry of Transport, the Ministry of Finance, the World Bank Country Director in Vietnam and many economic, financial, and transportation experts, more than 300 businesses, associations, industries and logistics businesses nationwide.

Vietnam Logistics Forum 2017 takes place in the context that Vietnam is preparing to enter a new phase, the phase of promoting innovation to keep pace with the 4th Industrial Revolution. Accordingly, in the spirit of promoting intelligence and direct dialogue, the Forum mentioned and discussed strategic issues for the development of Vietnam's logistics industry today and in the coming period.

Minister of Industry and Trade Tran Tuan Anh

Speaking at the Forum, Minister of Industry and Trade Tran Tuan Anh affirmed that the development of logistics in our country in recent times has made significant contributions to economic growth, expansion and development of international markets, and the country's economic restructuring.

However, the Minister also emphasized that logistics in Vietnam still has many limitations that have not been resolved for many years, such as the planning work between related sectors is still not closely connected; Transport, trade, and information technology infrastructure is still weak and cannot connect with countries in the region; Human resources for logistics activities still do not meet requirements; Especially, the competitiveness of logistics service businesses in Vietnam is not high compared to businesses in other countries in the region and the world...

The Minister suggested that at the Forum, presentations need to focus on clarifying the results achieved in recent times as well as remaining limitations, from which there will be more appropriate and effective solutions in the future.

The forum attracted the attention of a large number of attendees

Currently, Vietnam has about 3,000 businesses operating in the logistics service industry, of which about 1,300 businesses, mainly small and medium enterprises, actively participate in domestic and foreign markets.

Vietnamese businesses mainly provide domestic logistics services, such as domestic transport services, multimodal transport, seaport services, airport services, warehousing services, customs declaration, inspection, goods fumigation, goods testing, loading and unloading of goods... and undertake a part of international logistics services through acting as agents for foreign businesses that are subcontracted by shippers, shipowners, and international logistics service providers.

According to Mr. Le Duy Hiep - Chairman of Vietnam Logistics Service Business Association, logistics costs are still high, equivalent to 20.8% of GDP (developed countries range from 9-14%), contributing about 3% to GDP (2014 NRI). The outsourcing rate is about 35-40%, the main reason is that there is no coordination and cooperation between logistics service providers with manufacturers and importers and exporters. Vietnam's total logistics costs in 2016 were 41.26 billion USD, equivalent to 20.8% of GDP (source Armstrong & Associates). In which, the revenue of the top 100 logistics companies in Vietnam in 2016 was 8.74 billion USD, a growth rate of 15.6% (source Biinform Databes).

Mr. Ousmane Dione, World Bank Country Director in Vietnam, said that effective logistics and connectivity activities are important factors in ensuring Vietnam's competitiveness in the region and the world. Effective logistics is especially important for an economy that depends heavily on its ability to participate in global value chains and exports like Vietnam. This will help Vietnam increase productivity to achieve its ambitious development goals.

Forum discussion session

Within the framework of the Forum, the Ministry of Industry and Trade officially announced Vietnam Logistics Report 2017and launching the electronic information page from www.logistics.gov.vn. This is a fast, direct information exchange channel to help businesses and management agencies capture and respond to information promptly and effectively.

Also at the Forum, 05 signing ceremonies of strategic and comprehensive cooperation between businesses and university associations took place to promote and create breakthroughs in developing Logistics services in the coming time. Specifically: 1) OCB Bank and Bee Logistics; 2) Vinalines and Hoa Phat Dung Quat Steel Company; 3) Novaon Group & Bao Viet Insurance Corporation; 4) Logistics Service Business Association and Hanoi National University; 5) Cooperation of 16 Universities specializing in Logistics training.