Logistics costs in Vietnam remain high

Vietnam's logistics sector makes a modest contribution to the GDP at 3-4%, while logistics costs remain high, said Deputy Prime Minister Vuong Dinh Hue at the Vietnam Logistics Forum 2018, held in Quang Ninh, on December 7.

Deputy Prime Minister Vuong Dinh Hue speaking at the Vietnam Logistics Forum 2018 (Photo: Viet Tuan)
Deputy Prime Minister Vuong Dinh Hue speaking at the Vietnam Logistics Forum 2018 (Photo: Viet Tuan)

The forum has been held annually by the Ministry of Industry and Trade, the World Bank and the Vietnam Economic Times since 2013.

According to the Deputy PM, a document from the 12th Party Congress confirmed that logistics is a sector with high added value, under which Vietnam has set the targets of achieving a high growth rate and sustainable development of the sector.

However, he stressed that the contribution of the logistics sector to the GDP is insignificant at merely 3-4%, while logistics costs paid by enterprises are very high, which is contrary costs around the world.

In an attempt to improve the index, the government issued Decision 200 to stimulate the development of the sector which has brought about breakthroughs.

The logistics sector has grown by approximately 12-14% over the past three years and Vietnam's position on the World Bank's Logistics Performance Index (LPI) in 2018 rose 25 places compared to two years ago, jumping to 39th among 160 surveyed countries.

The government expects opinions and solutions from the forum to develop the national logistics market in order to reduce logistics costs and increase its contribution to the GDP, as well as making it capable of reaching out to the international market, Deputy PM Hue noted.

The government official also pointed out the question of how to develop the logistics sector in line with building the e-government, digital economy and e-commerce.

Entitled "Logistics connect economic growth regions", the forum, with the participation of more than 300 enterprises, is a venue for logistics firms, experts and associations to discuss with Vietnamese ministries, sectors and localities ideas and measures to increase links between economic regions of Vietnam and boost green logistics services.