Deputy Minister highlights developments in Vietnam's logistics

"Thanks to these measures, Vietnam's logistics capabilities and rank are seeing improvement and are set for expansion," he said.

As per World Bank rankings, Vietnam currently sits 64^th out of 160 nations regarding logistics development and stands fourth in the ASEAN region, trailing Singapore, Malaysia, and Thailand.

In an assessment by Agility in 2022, Vietnam was ranked 11^th among the top 50 emerging logistics markets globally. The growth rate of the Vietnamese logistics sector has consistently hovered between 14 and 16 per cent annually, with a market size approximating $1.7 to $1.8 billion.

The nation's logistics firms have proliferated. Currently, there are more than 3,000 domestic transportation and logistics companies, complemented by about 25 leading global logistics groups offering a range of services in Vietnam. These services span everything from customs procedures to tax payments.

Yet, despite these positive developments, Deputy Minister Dong voiced concerns. "There are challenges that need addressing. Firstly, our policies for the logistics sector are not yet harmonised. Although several legal documents have been issued for the sector, specific policies detailing these provisions are either not executed or overlap."

"Secondly, our transport and logistics infrastructure remain disparate and limited, failing to provide a multi-modal transport corridor even as the demand for high-quality transshipment of goods grows. Vietnam also lacks strategically located warehousing zones aligned with ports, airports, and highways. Thirdly, the operations of our logistics firms are often constrained by scale, capital, and talent."

Despite recent challenges stemming from the pandemic and global political fluctuations, Vietnam has managed to shift momentum positively. In the third quarter of 2023, Vietnam's GDP growth is estimated at 5.33 per cent, making the nine-month growth rate 4.24 per cent. "Whilst not high, in the context of the global economic challenges, it is a noteworthy achievement," Dong said.

The Vietnamese government is currently implementing various solutions to perfect the investment business environment, stimulate public investment disbursement, boost consumer demand, eliminate hindrances to production, business, and export, and focus on new growth drivers like the green economy and digital economy. All of these efforts are geared to meet the maximum objectives of the 2023 plan.

The achievements of 2023 will serve as a critical foundation for Vietnam to pursue the objectives of the 5-year plan from 2021 to 2025.

"As our economy rebounds, with production, business, and import-export activities gaining momentum, the demand for logistics activities will increase robustly," said Deputy Minister Dong.

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