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Logistics services in Vietnam have scale of 20-22 billion USD / year

Vietnam currently has about 1,300 logistics enterprises. Logistics services are in the scale of 20-22 billion USD / year, accounting for 20.9% of the country's GDP.

Present at the deployment conference: "Action plan to improve competitiveness and develop Vietnam logistics services until 2025", this afternoon (March 6), Deputy Minister of Industry and Trade, Tran Quoc Khanh that: “There should be a framework to help provincial People's Committees to develop policies to support and develop logistics services. Businesses also need to change in logistics services, because if they fulfill all the tasks set out in the action plan, enterprises still keep the habit of "Come on!" If you let your family do it all without outsourcing, "our service will not develop."

Mr. Le Duy Hiep, Chairman of Vietnam Logistics Services Association

 

Also at the conference, Mr. Le Duy Hiep, Chairman of the Association of Logistics Services Enterprises shared, in the late 1960s and 1970s, our country's logistics service industry had passed preliminary steps with the name of forwarding and logistics. but only shipping. But today, logistics is expected to play an increasingly important role for the economy.

Recent statistics of Vietnam Logistics Business Association said that there are about 1,300 logistics enterprises operating in the country, including foreign-invested enterprises. Logistics services in Vietnam currently have a scale of 20-22 billion USD / year, accounting for 20.9% of the country's GDP. If only the most important aspect of logistics is transportation, which accounts for 40-60% of the cost, it is also a huge service market.

However, statistics also show that Vietnam's logistics business community accounts for more than 80% of the total number of logistics service businesses in Vietnam, but most only serve small supply chains in the Vietnamese territory. with some segments such as forwarding, warehousing, customs clearance, retail consolidation and market share in ports ... Meanwhile, the activities are larger, inter-national All are covered by a number of multinational companies and corporations.

In contrast, foreign logistics companies are holding up to 80% of the market share, while they only have about 25 businesses operating, more than 1,200 domestic domestic logistics enterprises of Vietnam still hold 20% market share. again.

However, Mr. Le Duy Hiep said: “We also have to rectify a bit with the media about the status of Vietnam's logistics industry. In fact, not the turnover of foreign logistics enterprises accounts for more than 80% as people say. If calculating the services that are implemented in Vietnam such as: port operation, inland transport, warehousing, ... we are currently accounting for large revenue. It is clear that international shipping, international air transport and services outside Vietnam "are limited, because we lack a worldwide system. Because many global businesses are established. For over 100 years now, they have a better starting point than us.

In order for Vietnamese enterprises to gain market share, according to Mr. Hiep, businesses must boldly invest in infrastructure, both hardware and software. Besides, there is also a National Committee to coordinate logistics activities. Specifically, the National Trade Facilitation Committee (National Single-Committee) should have more management and coordination functions on logistics.

Currently, ranked according to the World Bank's logistics capacity index (LPI), Vietnam is ranked 64/160 and ranked 4th in ASEAN (after Singapore, Malaysia and Thailand). With an annual growth rate of 16-20%, this is one of the most steadily growing service sectors of Vietnam over the past time.

Decision No. 200 / QD-TTg dated February 14, 2017 of the Prime Minister approving the Action Plan to improve the competitiveness and development of Vietnam logistics services by 2025, affirming that logistics is a important service sector in the overall structure of the national economy, plays a role of supporting, connecting and promoting socio-economic development of the whole country as well as of each locality, contributing to improving capacity competition of the economy.

The birth of Decision 200 is a great motivation for logistics enterprises in Vietnam, because this is the first time a decision has been issued with a specific roadmap with 60 tasks assigned to agencies. , departments and localities have made clear and have time to complete.

The Government also stated that the development of logistics services into a service sector brings high added value and attaches logistics services with the development of goods production, import and export and domestic trade, infrastructure development. transportation and information technology.

Vietnam will develop a healthy logistics service market, creating equal opportunities for businesses of all economic sectors, encouraging domestic and foreign investment capital to be in line with Vietnamese laws and regulations. international convention that Vietnam is a member.

Therefore, in the Action Plan to improve competitiveness and develop logistics services in Vietnam until 2025, the Government aims to 2025, the proportion of logistics services to GDP will reach 8% - 10%, the growth rate of services reached 15% -20%, the rate of outsourcing logistics services reached 50% -60%, logistics costs fell to 16% -20% of GDP, ranked according to performance index The world logistics force (LPI) in the world reaches 50 or higher (probably from 40-45).

In order to realize the objectives, in the coming time, it is necessary to improve policies and promote investment in logistics infrastructure; Strengthening cooperation with foreign partners to expand logistics infrastructure connectivity. Investing in logistics infrastructure expansion to connect Vietnam's ports with neighboring countries.

According to the plan, there are 6 main groups of tasks including: Perfecting policies and laws on logistics services; Complete logistics infrastructure; Improve business capacity and service quality; Developing logistics service market; Training, raising awareness and quality of human resources; Other tasks.

Funds for implementation of this Action Plan will be mobilized from sources such as: State budget capital; corporate capital; loans from credit institutions, international funding and other lawful mobilized capital sources as prescribed by law.

The Hung

 

 

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