Vietnam Logistics Forum 2023: Focus on 6 key tasks

The forum was attended by Politburo member, Head of the Central Economic Commission Tran Tuan Anh, Deputy Minister of Industry and Trade Phan Thi Thang, Secretary of the Can Tho City Party Committee Nguyen Van Hieu, Chairman of the Can Tho City People's Committee Tran Viet Truong, and leaders of ministries, branches and localities.

This is an annual event organized by the Ministry of Industry and Trade since 2013, aiming to coordinate activities to promote the development of logistics services; create a connection between logistics and the manufacturing and import-export industries; and at the same time, it is a place for dialogue and updating information on urgent issues of logistics services in Vietnam and the world.

Logistics is not commensurate with its potential.

Speaking at the Forum, Deputy Minister of Industry and Trade Phan Thi Thang said that in 2023, although the world and domestic economies faced many difficulties, the logistics industry played a good role as the lifeblood of the economy, ensuring the smooth circulation of goods, playing an important role in bringing the total import and export turnover of goods in 10 months to 558.3 ​​billion USD, with a record trade surplus of 24.59 billion USD.

Vietnam is also among the top 10 emerging logistics markets. The forecasted annual compound growth rate for the period 2022-2027 is 5.5%. This is an encouraging result in the context of global economic and trade difficulties due to geopolitical and economic instability worldwide.

According to Deputy Minister Phan Thi Thang, the 4th industrial revolution has created new changes in many industries. Breakthroughs in artificial intelligence and computer science are changing the way people interact with the world and the way businesses change processes, increase efficiency, and reduce costs. The logistics industry is no exception to that trend. Digital transformation in logistics helps reduce costs, improve service quality and customer experience. Increase connectivity within the organization and among parties in the supply chain, thereby improving performance and enhancing the competitiveness of businesses in the logistics industry in particular and the entire economy in general.

Deputy Minister of Industry and Trade Phan Thi Thang speaks at the Forum

Based on the benefits brought by digital transformation in logistics, Decision No. 749/QD-TTg dated June 3, 2020 of the Prime Minister approving the National Digital Transformation Program to 2025, with a vision to 2030, identified logistics as one of the 8 areas that need to prioritize digital transformation.

However, according to Deputy Minister Phan Thi Thang, the digital transformation process in logistics in Vietnam still faces many difficulties at both the macro and micro levels, both at state management agencies, localities and enterprises.

Typically in the Mekong Delta. Although this is one of the 6 key economic regions, with great potential and demand for logistics services, the infrastructure and capacity of the logistics service industry in the region are still limited, not contributing much to the socio-economic development of the region.

Comrade Tran Tuan Anh, Politburo member, Head of the Central Economic Commission, also assessed: Logistics is a service industry that plays an essential role and makes an important contribution to socio-economic development. Vietnam's logistics industry has made strong development steps in recent times, making an important contribution to economic growth and job creation. In 2023, according to the World Bank's rankings, Vietnam's logistics performance index (LIP) was ranked 43rd out of 139 ranked economies; a significant improvement compared to 53rd place in 2010. Currently, Vietnam is in the top 10 out of 50 emerging logistics markets in the world according to the Emerging Markets Index 2023.

According to comrade Tran Tuan Anh, in recent years, the Vietnamese logistics industry has also actively implemented digital transformation according to the Party's policy stated in Resolution 52/NQ/TW dated September 27, 2019 of the Politburo and the National Digital Transformation Program to 2025, with a vision to 2030.

Head of the Central Economic Commission Tran Tuan Anh speaks at the Forum

However, comrade Tran Tuan Anh also commented that the logistics industry in the whole country in general and the Mekong Delta in particular still has many limitations, not commensurate with the conditions and development potential.

Specifically, according to calculations by the Vietnam Logistics Services Association, Vietnam's average logistics costs are 16.8 - 17%, much higher than the world average. Logistics infrastructure is still limited, lacking synchronization and connectivity; seaport planning is still inadequate, there are no major ports or logistics centers; the connection between transport modes and transport capacity is still low.

6 key tasks

In order for Vietnam's logistics service industry to continue to develop rapidly and sustainably, keep up with international trends, and make positive contributions to the economic development of the country in general and the Mekong Delta in particular, the Forum discussed and agreed to focus on implementing 6 key tasks and solutions.

Accordingly, it is necessary to continue to innovate and improve the quality of institutional work, perfect policy mechanisms and legal regulations on logistics, ensure compliance with international commitments and practices, create a complete and synchronous legal corridor and an open business environment to encourage domestic logistics companies to improve their professional capacity and service quality, promote linkages between logistics enterprises with each other and with production, business and import-export enterprises.

At the same time, promote digital transformation and increase the application of scientific and technological achievements in logistics to limit risks, increase efficiency, and improve logistics operations.

Along with that is mobilizing resources, focusing on removing difficulties, implementing key projects of the transport sector and solutions to synchronously develop the transport infrastructure system, seaports, and logistics centers.

At the same time, develop logistics human resources, especially high-quality, professional human resources with knowledge, management skills, technology, foreign language proficiency... according to national, regional and world standards, meeting the increasing requirements of international economic integration.

In addition, it is necessary to continue to synchronously and effectively implement solutions to reduce costs and improve logistics efficiency as set out in Decisions 200/QD-TTg and 221/QD-TTg of the Prime Minister.

Continue to promote reform and simplify administrative procedures related to logistics activities in the direction of minimizing inspection procedures at the import stage, enhancing post-inspection and transparency in customs procedures, thereby creating favorable conditions for the development of Vietnam's logistics industry.

In addition, units need to focus on completing and submitting to competent authorities for promulgation the Strategy for developing Vietnam's logistics services to 2030, with a vision to 2050, with specific goals, solutions and roadmaps to realize the dual transformation goals of "Digital transformation" and "Green transformation", orienting the development of Vietnam's service industry in the coming time.

On the side of the Ministry of Industry and Trade, Deputy Minister Phan Thi Thang said that the Ministry will coordinate with relevant ministries and branches to continue to fully synthesize recommendations and proposals from localities, associations, and enterprises operating in domestic and international logistics services. From there, report to the Government and the Prime Minister to consider and direct the amendment, supplementation, and completion of policy mechanisms and legal regulations, creating a favorable legal corridor for the logistics service industry to continue to innovate and develop rapidly and sustainably in the coming time.

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