Hanoi eyes cutting logistics costs

12-Jan-2019 Intellasia | VNS | 6:00 AM Print This Post

Hanoi has devised a plan to cut logistics costs and improve transport connectivity in the capital city to support investors and businesses.

Under the plan, the capital city aims to integrate logistics services into development strategies of industries.

Logistics centres would be developed along belt roads together with infrastructure systems to ensure connectivity to agricultural and industrial production areas, with warehouse development also key.

The city also hopes to promote cooperation between logistics companies and firms using logistics services.

Supervision will also be enhanced to develop a healthy logistics services market to enhance the competitiveness of firms as well as promote production and business.

The capital city will also build human resources for logistics industry.

Logistics costs in Vietnam are high, undermining firms’ competitiveness. World Bank statistics showed that logistics costs in Vietnam account for about a fifth of GDP, compared to 10-14 per cent in developed economies.

According to the municipal Department of Industry and Trade, Hanoi has significant potential to become a logistics hub, thanks to its huge market and large number of firms.

Statistics of the Vietnam Logistics Association show that there were about 4,000 domestic logistics firms in Vietnam, with 1,000 of them operating in Hanoi.

The capital city in February 2018 approved a project to develop the logistics industry, which set the target that logistics would contribute 9-11 per cent to the Hanoi’s gross regional domestic product by 2025.



Category: Economy, Vietnam

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