Deputy Prime Minister Vuong Dinh Hue pointed out the paradox of Vietnam’s logistics service industry at the Vietnam Logistics Forum 2019 in Danang, organized by the Ministry of Industry and Trade and the Vietnam Economic Times.
According to Deputy Prime Minister Vuong Dinh Hue, Vietnam is a potential market for the development of logistics services. As in 2019, it is expected that Vietnam’s import-export turnover will reach about 530 billion USD, of which agricultural products alone will reach about 41 billion USD … That figure shows a great potential for the logistics service industry to develop. development.
However, the paradox is that Vietnam’s logistics costs are quite high. For example, a kilogram of dragon fruit exported to the US by air has a logistics cost of about 3.5 USD, if the selling price of 7 USD, the logistics cost has accounted for 50%.
“I have heard from an enterprise that a kilogram of shrimp is moved to a mountainous area (domestic) more expensive than a kilogram of shrimp from Ecuado to Vietnam … That is because our logistics costs are not reasonable.” , Deputy Prime Minister Vuong Dinh Hue emphasized.
The Party and the State are very interested in developing services in general, with priority given to developing high-value services such as finance, banking, logistics ….
In order to gradually improve logistics policies and mechanisms, the Government and the Prime Minister have issued important documents such as the Prime Minister’s Decision No. 200 / QD-TTg in 2017 approving the Action Plan. activities to improve competitiveness and develop logistics services in Vietnam to 2025; Decree No. 163/2017 / ND-CP of the Government stipulating the business of logistics services; Directive No. 21 / CT-TTg of the Prime Minister in 2018 on accelerating the implementation of solutions to reduce logistics costs, effectively connect transport infrastructure …
Most recently, the Prime Minister issued a Decision to supplement the duties of the National Steering Committee on ASEAN Single Window, National Single Window and Trade Facilitation with the task of helping the Government and Prime Minister. The Prime Minister directs, directs and coordinates the activities of the ministries, other agencies and organizations involved in completing the policy; deploy development solutions, improve quality, improve the efficiency and responsiveness of logistics services according to the requirements of economic development and enhance the competitiveness of trade and the economy.
“The above new mission of the Committee is considered to be an important milestone for Vietnam’s logistics service industry as well as creating trade facilitation, showing the interest of the Government and the Prime Minister in developing the country’s logistics service industry to keep pace with the advanced level of international logistics … “, Deputy Prime Minister emphasized.
The Deputy Prime Minister also noted, the more we invest in logistics sectors, the more benefit farmers and businesses. Therefore, the Government has set a goal of striving to reduce logistics costs by about 16% of GDP by 2025 (currently costs are higher than 20%). Contribution to GDP is 8 to 10% of GDP (currently about 4 to 5%) …
Deputy Prime Minister Vuong Dinh Hue emphasized that in order to achieve the set goals, we must innovate at all stages. Because right from the manufacturing stage has been related to logistics, then to input services, preliminary processing, post-harvest preservation … all are related to logistics. We produce well but the processing is limited, such as our cold chain technology is very poor, raw, heavy and post-harvest processing is limited. Meanwhile, product quality decides the mode of transport.
“We aim to bring the logistics ranking of the logistics industry to the 50th position in the world, while the World Bank newspaper says that we are already at 39. I don’t really believe in these statistics … In general, we are low and going against the world when contributing low GDP, logistics costs in goods composition are high … “, Deputy Prime Minister Vuong Dinh Hue emphasized.
In the coming time, it is necessary to promote the application of information technology because this is a factor that can help domestic logistics enterprises to strengthen. We are gradually modernizing the industry such as using robots in place of people, using automated delivery vehicles, applying QR, optimizing inventory based on cloud data … Changing business models Joint is important today. The strong industrial revolution 4.0 sometimes destroys traditional business models to replace them with new ones if logistics enterprises cannot catch up, they will lose in the competitive market.
In addition, businesses need to know sharing capacity, sharing vehicles … to avoid what is happening in practice such as empty return containers, goods in one container are missing but put in two containers then admit …
I suggest that leaders of ministries, branches and localities should take care of leadership and direction more often and more closely; levels and sectors should coordinate more smoothly in the direction and administration of logistics activities. Especially in the task of training and retraining to develop high quality human resources in the field of logistics to be ready to adapt to practical requirements set out.
