The bottleneck of Vietnam's Logistics industry

28 12月 2023
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What are the current important bottlenecks of Vietnam's Logistics industry? Dr. Logistics Pham Thi Bich Hue mentioned the challenges of the Vietnamese Logistics industry today.

Sharing at the first discussion session "Evaluating Vietnam's logistics trends" at the 2023 Logistics Conference - "The Road Ahead" organized by Investment Newspaper under the sponsorship of the Ministry of Planning and Investment, Ms. Pham Thi Bich Hue, Founder, President of Western Pacific Company commented: "Vietnam's Logistics industry is on a development path full of expectations".

However, in order for Vietnam's Logistics industry to step onto the "green path", how to reduce Logistics costs on the country's total GDP, there are still many bottlenecks.

The most important and biggest bottleneck in the logistics industry today is planning. This is a bottleneck that greatly affects the industry's operations. The most typical example is that the current planning of logistics centers does not closely follow the actual needs of businesses. The reality is that the industrial park is located in one place, all goods and sources of consumption are located around the industrial park, but the locality plans a logistics center in another location. This is a huge inadequacy.

There is no synchronous planning of logistics infrastructure, which makes Vietnam's logistics costs higher than those of neighboring countries. For example, in Singapore, logistics costs are under two digits, while in Vietnam logistics costs are over 20%. This is one of the huge limitations when we call for foreign investment.

The next bottleneck is the legal corridor. Decision No. 1012/2015/QD-TTg of the Prime Minister on approving the planning to develop a system of logistics centers across the country until 2020, with an orientation to 2030, with only the center designation. logistics, but the law has not yet specified.

According to Ms. Hue, it is time for the Government to rebrand the Logistics industry. The reason why the word Logistics itself has been and is too broad, including many industries, occupations, fields such as infrastructure, services, people, etc. Legalizing and specifying the industry not only helps with transparency in the legal corridor. not only makes businesses feel more secure but also helps attract investment from Logistics "eagles" in the world.

However, according to the Chairman of the Board of Directors of Western Pacific, managing the Logistics industry is not easy. Because this is an industry that changes every day, every month, every quarter, etc. Sometimes legalizing the industry will be difficult to follow. But at least there should be a relative response to changes in the Logistics industry.

Source: Dr. Logistics Pham Thi Bich Hue - Founder & Chairwoman of Western Pacific Group

 

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