Vietnam's logistics expenses cut by 14 per cent by 2025

August 22, 2022 | 16:23
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Following the mid-August signing of a strategic partnership agreement, a multimodal logistics network is gradually taking form.

The primary objective of the collaboration between T&T Group, Saigon-Hanoi Bank (SHB), Vietnam Airlines Corporation, and Vietnam Railways Corporation is to establish infrastructure links for services based on the respective capabilities of each party.

At a time when global logistics activities are challenging, this will aid in promoting Vietnam's commerce.

Do Quang Hien, chairman of SHB said, "By 2025, logistics expenses in Vietnam will be cut by 14 per cent, and by 2035, will be at 8-10 per cent – roughly equivalent to that of Singapore."

According to Hien, cooperation to link the supply chain, innovate in terms of technology and manageability, and boost competitiveness by enhancing the efficacy of logistics services is the key for enterprises to escape the current obstacles and collaborate for future sustainable growth.

In recent years, SHB – one of the joint-stock commercial banks that sponsor transport and logistics infrastructure – has fostered collaborations with international enterprises to implement logistics infrastructure improvements in Vietnam.

Vietnam's logistics expenses cut by 14 per cent by 2025
Connecting develops a logistical network from each party's strengths. Photo: Phan Nhung

Vietnam Airlines president Dang Ngoc Hoa stated that the airline will have greater momentum to establish a development breakthrough in the freight transport industry with the participants in this connection. Vietnam Airlines' fleet of more than 100 aircraft will increase the value of this chain of transportation alternatives.

T&Y, a joint venture between T&T Group and YCH Singapore Group, launched the construction of the Vinh Phuc ICD logistics centre – the first superport in the ASEAN innovative logistics chain – at the end of 2021.

The project was constructed in Vinh Phuc province. With an investment capital of over $200 million, it covers 83 hectares and has a customs clearance capability of around 530,000 TEU per year.

Currently, T&T Group manages and operates Quang Ninh Port, an international deep-water port with a significant role in northern-area connectivity. This group is considering investing in an airport in the central area that is scheduled for 2025.

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By Angela Nguyen

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