This is one of the comments given at the Workshop to solicit opinions on the Draft Strategy for Vietnam's Logistics Services Development to 2030, with a vision to 2050, organized by the Ministry of Industry and Trade on the morning of January 26, in Ho Chi Minh City.
Specific goals and green logistics are needed.
The draft Strategy for the development of Vietnam's logistics services to 2030, with a vision to 2050, is being consulted by the Ministry of Industry and Trade, aiming to develop Vietnam's logistics services industry sustainably, effectively, with high quality and added value, capable of competing in the region and the world, promoting Vietnam's advantages in the global value chain.
The goal by 2030 is that the logistics service industry's contribution to GDP will reach 6-8%, the logistics service outsourcing rate will reach 60-70%; logistics costs will be reduced to 16-18% of GDP; and the world's LPI ranking will reach 45th or higher.
The goal by 2050 is that the logistics service industry's contribution to GDP will reach 12-15%; the outsourcing rate will reach 70-90%; logistics costs will be reduced by 10-12%; and the world's LPI ranking will reach 30th or higher.
At the Workshop, delegates contributed opinions on policies, viewpoints, and orientations, and proposed solutions and recommendations along with related tasks, projects, and implementation plans.
Commenting on the Draft, Mr. Le Duy Hiep - Chairman of the Vietnam Logistics Services Association (VLA) said that the Draft needs to have specific goals on environmental protection and green logistics. Currently, foreign enterprises have quite strict requirements on ESG criteria (environment, society and governance), in which logistics services must also meet green and sustainable criteria.
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| Overview of the Workshop to seek opinions on the Draft Strategy for developing Vietnam's logistics services to 2030, with a vision to 2050 |
In addition to the digital transformation goals, it is necessary to set specific coordination goals with agencies such as tax and customs. Typically, by 2030, the goal is to digitize 100% of transportation, or epost, cashless payment, etc.
In addition, the industry needs to have specific goals for human resource development. Currently, there are many agencies and training units that can provide the market with highly qualified human resources by 2030. However, currently, businesses in the industry have difficulty recruiting staff from mid-level and above. Human resource training also needs to improve training programs to be closer to reality.
Promoting regional connectivity
Representative of Vietnam Shipowners Association - Deputy General Director of Gemadept Joint Stock Company - Pham Quoc Long said that the Draft sets the target of developing Vietnam's logistics services by 2030, with a vision to 2050, the contribution rate of the logistics industry to GDP reaching 12 - 15%. This is quite an ambitious target, 12% is a very large number, so there needs to be a clear development strategy.
According to Mr. Long, the logistics development strategy needs to promote synchronous regional connectivity planning. There is currently a seaport planning, but some places are lacking and some are redundant. Typically, in Hai Phong, Cai Mep - Thi Vai port (Ba Ria - Vung Tau) we have not yet fully exploited its capacity.
“Every province wants to have airports, seaports, and deep-water ports. This is a waste. Resources are very limited, so we need to have synchronous regional linkages to avoid scattered investment,” Mr. Long emphasized.
To address this issue, it is necessary to consider establishing a National Logistics Committee. This committee will act as a conductor to coordinate between ministries and sectors such as the Ministry of Finance, the Ministry of Transport, the Ministry of Industry and Trade and localities.
“The Ministry of Industry and Trade has good strategies, but without the coordination of ministries, branches and localities, the Ministry of Industry and Trade alone cannot do it,” said Mr. Long.
In addition, it is necessary to promote the development of inland waterways. Vietnam is a country with a long coastline and a dense network of rivers and canals. Inland waterway transport costs are also lower than other modes of transport, reducing congestion and environmental pollution, moving towards greening the logistics industry.
Giving a specific example, Mr. Long said that the cost of transporting a container of goods from the Mekong Delta to Ho Chi Minh City only costs 2.5 million VND if using inland waterway transport, while transporting by road costs up to 7 million VND.
“Inland waterway transport has many advantages, but currently only accounts for 20% of the country’s transport. There needs to be a specific strategy to promote it,” Mr. Long emphasized.
Sharing the same view, Mr. Dang Phuc Nguyen - General Secretary of the Vietnam Fruit and Vegetable Association said that fruit and vegetable is an industry with rapid growth in recent times. In the coming time, the export turnover of fruit and vegetable can reach 7 - 10 billion USD. To achieve this, logistics plays an important role.
According to Mr. Nguyen, in the coming time, we need to focus on promoting the construction of modern highways. "Fruit and vegetable businesses hope that the development of highways will be invested in a systematic way, from Lang Son to Ca Mau," Mr. Nguyen expressed.
Currently, the time to transport goods from the Mekong Delta to Lang Son takes 2 days, but if there is a highway, the transportation time will be shortened to only 1 day. This will help Vietnamese goods entering this market have more competitive advantages.
In addition, 60-70% of fruit export output is currently located in the Mekong Delta, but the road infrastructure in this region is still weak. Therefore, it is necessary to invest in regional road infrastructure to reduce post-harvest losses. Especially investing in cold storage and wharfs at border gates. To avoid the situation where there is a large supply of goods during the harvest season, there is a place to store the goods.
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| Mr. Tran Thanh Hai - Deputy Director of the Import-Export Department, Ministry of Industry and Trade spoke at the Workshop |
Acknowledging the comments of the delegates at the Workshop, Mr. Tran Thanh Hai - Deputy Director of the Import-Export Department (Ministry of Industry and Trade) said that the Ministry of Industry and Trade will seriously consider, absorb and hope to continue to receive comments in many forms so that the Strategy can properly demonstrate the stature of an important economic sector, contributing to supporting logistics enterprises to improve their competitiveness, contributing to the overall socio-economic development of the country, successfully implementing the goals set by the Party and the State.
The draft Strategy for the development of Vietnam's logistics services to 2030, with a vision to 2050, is expected to be submitted to the Prime Minister in the second quarter of 2024. The business community also expects that, when issued, the strategy will create a level playing field for Vietnamese logistics service enterprises.
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