|Concerning to logistics, according to Ministry of Industry and Trade, the cost of transporting a shrimp from Mekong Delta to the Northern border is higher than from Ecuador to Vietnam
Deputy Minister Tran Quoc Khanh has an easy- to- understand example of the capacity of Vietnam’s logistics industry, at the Conference “Implementing Action Plans to Enhance Competitiveness and Develop Logistics Services to 2025.” held by the Ministry of Industry and Trade in the evening of March 6, in Hanoi.
Domestic costs are more than double
According to Ministry of Industry and Trade, logistics plays an important role in competitiveness of enterprises and supply chain.
In the current context, Deputy Minister Tran Quoc Khanh has emphasized the competitiveness of this industry by saying that the same products can be produced with the same quality and price by the enterpises; however, the competitive advantages is logistics.
According to Mr. Khanh, in some developed countries, the cost of logistics account for 10 to 20 percent of GDP and in Vietnam, the cost can be up to 20 percent of GDP which is higher almost twice.
The Ministry of Industry and Trade said that the reason is the logistics systems has not developed in all localities, only focused on some big cities such as Ha noi, Da Nang, Ho Chi Minh City while some places such as the Mekong Delta are consider as the granary, the largest seafood producer in the country then the service is developing slowly.
Deputy Minister Tran Quoc Khanh said” with the export- import turnover in 2016 up to USD 300 billion and the forecast that the growth rate may be 8 to 10 percent steadily in the coming years will be the conditions to bring logistics to the new level.”
Bringing logistics to the new level
Nowadays, there are more than 1,300 enterprises are operating and trading in logistics of which the largest ones are still 100 percent domestics enterprises.
However, according to the Agency of Foreign Trade, although occupy a large number, 80 percent of revenue from this sector falls into foregin investment enterprises.
With those weakeness, according to Deputy of Agenct of Foreign Trade Tran Thanh Hai, because Vietnam’s enterprises are mostly medium and small- sized, located scatterd and lack of connection, their competitive in logistics industry is weak.
Meanwhile, foreign investment enterprises are participating in Vietnamese market which is the very large enterprises with global connections and is dominating the market share in logistics industry.
As a matter of fact, in order to create a new motivation and bring logistics industry to a new level, Mr. Hai said on February 14th, the Prime Minister approved the action plan to enhance competitiveness and develop logistics service to 2025.
The point of this plan with create more legal corridors for logistics operations, including the plan of integrated logistics system into the manufacturing sector.
Specifically, this action plan will focus on supporting legal framework, improve the capacity of enterprises providing services and fostering enterprises to rise up and catch up with export- import activities.
According to Mr. Hai, this action plan is interested in how to get the leading enterprises invest in logistics to create a wave, create a big interest of the enterprises with this activities.