Prime Minister: Vietnam's logistics is going against the world

The Vietnam Logistics Forum, jointly organized by the Ministry of Industry and Trade, the World Bank, Vietnam Economic Times, and other agencies, has been an annual event since 2013. This year, the forum was held in Ha Long City in collaboration with the Quang Ninh Provincial People's Committee. Deputy Prime Minister Hue emphasized the significance of choosing Quang Ninh, a province experiencing rapid development, as the venue for this year's forum.

Vietnam's Logistics Sector: Small Contribution, High Costs

Ha Long City – Vietnam's logistics sector contributes a mere 3-4% to the nation's GDP, while logistics costs for businesses remain high, contrasting sharply with global trends. This was highlighted by Deputy Prime Minister Vuong Dinh Hue at the Vietnam Logistics Forum 2018 held on December 7th.

The Vietnam Logistics Forum, jointly organized by the Ministry of Industry and Trade, the World Bank, Vietnam Economic Times, and other agencies, has been an annual event since 2013. This year, the forum was held in Ha Long City in collaboration with the Quang Ninh Provincial People's Committee. Deputy Prime Minister Hue emphasized the significance of choosing Quang Ninh, a province experiencing rapid development, as the venue for this year's forum.

He reiterated the Party's commitment to logistics as a high value-added sector, aiming for high and sustainable growth. The service sector is expected to grow faster than the average GDP, with particular attention given to high value-added sectors like logistics.

However, the Deputy Prime Minister pointed out the "contradiction" of the sector's low contribution to GDP (3-4%) despite high logistics costs for businesses, a trend opposite to that observed globally.

Highlighting efforts to improve this, he noted that following the Prime Minister's Decision 200, the sector has witnessed strong growth, averaging 12-14% over the past three years. Vietnam has climbed 25 places to 26th position in the World Bank's logistics ranking of 160 countries, ranking third in ASEAN.

The Deputy Prime Minister posed the question of how to further boost the logistics sector, especially for businesses, given the lack of major players in this field. He stressed the need to increase the sector's contribution to GDP while reducing costs for businesses, calling this the "crucial and core issue" of all logistics forums.

The Government expects recommendations and suggestions from the forum for the Government, localities, and ministries on how to develop not only the domestic logistics market but also expand internationally.

Addressing the forum's theme of "Logistics Connecting Economic Growth Regions," the Deputy Prime Minister affirmed the Party's policy of strengthening regional linkages. He called for the Government to complete a master plan for logistics and mobilize resources for development, while emphasizing the role of businesses in creating value chains for logistics products and services.

With over 300 businesses participating in the Logistics Forum 2018, the Deputy Prime Minister saw this as a positive sign. He highlighted the role of businesses and associations in creating logistics product and service chains.

Deputy Prime Minister Hue also raised the issue of developing the logistics sector in the context of e-government, the digital economy, and e-commerce.

Emphasizing the need for modernization alongside scale expansion, he, as Chairman of the National Steering Committee on ASEAN Single Window and National Single Window mechanisms, tasked the forum with providing input on how to integrate logistics into this committee within the framework of the Fourth Industrial Revolution.

By Nguyen Vu Vneconomy