Vietnam’s logistics sector plan launched

The Viet Nam Logistics Association (VLA) on Wednesday launched a ceremony to implement the Government’s first national action plan to improve the country’s competitiveness and its logistics sector by 2025. The plan calls for building level-1 logistics hubs (the highest level) in Ha Noi and HCM City, and level-2 logistic centres in Lang Son, Lao Cai, Hai Phong, Da Nang, Quy Nhon, and Can Tho.

In Vietnam, there are only 1,300-1,500 firms in the sector. More than 70 per cent of the businesses are small- and medium-sized with average capital of about VND7 billion (US$320,000).

Some of the largest export markets include the ASEAN region and Europe. Trade with Europe is expected to increase with the EU-Viet Nam Free Trade Agreement (EVFTA) coming into force next year.

Logistics costs in Viet Nam are among the world’s highest, at 25 per cent of GDP, according to Logistics Insight Asia. Logistics costs in the US, Europe and the rest of the world are around 9, 13, and 15 per cent, respectively.

(VBN)