On November 11, in Lao Cai City, the Ministry of Industry and Trade coordinated with the People's Committee of Lao Cai province to organize a conference on developing logistics services in Lao Cai province.
This is an activity within the framework of the 23rd Vietnam - China International Trade Fair (Lao Cai) in 2023.
Trade connection center
Speaking at the Conference, Deputy Minister of Industry and Trade Phan Thi Thang said that Lao Cai is a locality with a strategic geo-economic and political position for the whole country and the region, considered an important "gateway" and "bridge" for trade and cultural exchange not only between Vietnam and China but also ASEAN countries; an important transit and logistics service center in the Kunming - Lao Cai - Hanoi - Hai Phong economic corridor, an important connection of the North - South corridor in cooperation among the Mekong Sub-region countries.
Leaders of the Ministry of Industry and Trade assessed that the Lao Cai - Hekou international border gate pair (Yunnan, China) plays the role of a "gateway" for trade in the shortest transportation route from Kunming to the East Sea (Hai Phong Port) with all types of connecting transportation.
“With many distinct potentials, comparative advantages and outstanding opportunities, and abundant resources, Lao Cai has all the unique conditions to develop into a growth pole of the northern border region, becoming a center for economic trade connection between Vietnam and ASEAN countries with the Southwest region - China” - Deputy Minister Phan Thi Thang affirmed.
Deputy Minister of Industry and Trade Phan Thi Thang speaks at the Conference |
According to the Deputy Minister, in recent years, logistics services have affirmed their role and position in the socio-economic development process in general and in the trade sector in particular in Lao Cai province. This is a key factor in the goods circulation chain, creating added value for goods and enhancing competitiveness for businesses and the province as a whole.
“Thanks to the right development direction, in just over the past ten years, the socio-economic landscape in Lao Cai has changed rapidly, from revenue not enough to cover expenditure, Lao Cai has become a province in the top group of 14 provinces in the midland and mountainous areas of the North. In the period of 2011 - 2020, the province's GRDP growth rate reached 9.2%/year; the growth rate of total retail sales of goods and consumer service revenue reached 15.2%/year, higher than the average of the region. Import and export activities through the province in recent times have also developed in the right direction, the proportion of goods cleared through international border gates has gradually increased and accounted for an increasingly large proportion" - the leader of the Ministry of Industry and Trade assessed.
According to Mr. Trinh Xuan Truong, Chairman of Lao Cai Provincial People's Committee, Lao Cai has been determined to build the province into one of the growth poles, an important nucleus in the economic development of the Northern midland and mountainous region.
Up to this point, Lao Cai has been approved by the Prime Minister: Lao Cai Provincial Planning for the period 2021 - 2030, with a vision to 2050; General planning for the construction of Lao Cai Provincial Border Gate Economic Zone to 2040, with a vision to 2050; Border gate planning on the Vietnam - China land border for the period 2021 - 2030, with a vision to 2050 and is being considered and approved by the Prime Minister for the Project "Building Lao Cai to become a center for economic trade connection between Vietnam and ASEAN countries with the Southwest region - China... to concretize Resolution No. 11-NQ/TW dated February 10, 2022 of the Politburo.
Mr. Trinh Xuan Truong, Chairman of Lao Cai Provincial People's Committee spoke at the Conference |
“Regarding roads, connecting traffic infrastructure has always been invested in and upgraded. In the period of 2024 - 2025, the construction of phase 2 of the Noi Bai - Lao Cai expressway (Yen Bai - Lao Cai section) will be synchronously implemented. Regarding the Lao Cai - Hanoi - Hai Phong - Quang Ninh high-speed railway, the Government has assigned the Ministry of Transport to develop a pre-feasibility study. Regarding the airport, Lao Cai province is also implementing it,” Mr. Truong informed.
There are still many "bottlenecks", development is not commensurate with potential
Despite many achievements, however, the Chairman of Lao Cai Provincial People's Committee acknowledged that Lao Cai's border gate economic infrastructure and logistics services still have many limitations, there is no logistics center with full basic functions; logistics service costs are still high, and connectivity between businesses is limited. Research, forecasting and market information are still weak; regional and business connectivity information is not high. Import and export turnover through Lao Cai international border gate is not commensurate with the potential advantages of both sides.
Sharing the same opinion, Deputy Minister Phan Thi Thang commented that logistics activities in Lao Cai and the northern border provinces in general still have some major limitations. Specifically, the logistics system, especially the transport infrastructure, although having received investment attention, still has some problems such as limitations in exploiting railways with China due to lack of synchronization in track gauge; steep river systems, many hidden rocks when exploiting transport; no logistics center of appropriate scale.
Conference Overview |
In addition, the number of enterprises is large but most of them are small-scale, fragmented, mainly providing single services, lacking connectivity; the application of technology, especially in e-commerce and cross-border e-commerce, is still low; there are no breakthrough mechanisms and policies to support the development of logistics activities to their full potential.
In addition, the lack of logistics connectivity between localities is one of the reasons why the supply and circulation of goods is easily negatively affected when the foreign market fluctuates. The ineffective connection between production, processing and export areas is also the reason for high logistics costs and long transportation times.
Promoting digital transformation in logistics
To remove bottlenecks in logistics activities in Lao Cai, Deputy Minister Phan Thi Thang suggested that Lao Cai should focus on reviewing, amending, supplementing, promulgating or advising competent authorities to promulgate new breakthrough and feasible mechanisms and policies in the development of border economic zones, border trade activities and logistics through the area.
At the same time, the province needs to prioritize the budget as "seed capital"; lead and attract corporations and enterprises with prestige, capacity and experience to invest and develop logistics infrastructure. In particular, priority should be given to attracting investment in developing new-generation logistics and agricultural processing centers, applying 4.0 technology, contributing to increasing the added value of services and reducing costs accordingly.
“Lao Cai needs to promote the application of information technology and digital transformation in logistics in both the management and business of logistics services in the province; research and effectively operate an electronic information portal on freight transport and online data exchange solutions to save time, reduce costs and improve the efficiency of goods control and management” - The leader of the Ministry of Industry and Trade suggested.
In addition, Lao Cai province needs to invest more in training and developing human resources, especially high-quality human resources and local human resources at both management and business levels; continue to promote administrative reform, improve the investment and business environment; encourage innovation and digital transformation programs, digital economy, to meet the requirements of logistics service development in the new situation.
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