VN houses 4,000 logistics enterprises
10:12 | 02/08/2019

VGP – Viet Nam has about 4,000 logistics enterprises but a majority of them are small with weak manpower, reported the Ministry of Industry and Trade (MoIT).

Illustration photo

The MoIT on July 30 issued a report on the implementation of logistics development tasks on the thresholds of a meeting of the National Steering Committee on ASEAN single window.

Earlier, in early June, the PM signed Decision 684/QD-TTg assigning the MoIT to be responsible for coordinating and developing national logistics in accordance with Viet Nam’s agreements with the WTO and Government’s resolutions, decrees, decisions and directives on the field.

The Viet Nam Logistics Association (VLA) said that the logistics sector’s growth rate was restively high at 12-14%. The proportion of outsourcing logistics services hit about 60-70%, contributing about 4-5% of GDP.

The World Bank (WB) reported that in 2018 Viet Nam’s logistics performance index (LPI) ranked 39th out of 160 countries, jumping 25 steps forwards in comparison with 2016, positioning at the third place in ASEAN.

About 70% of the total logistics enterprises are located in HCMC and surrounding areas. Vietnamese logistics enterprises are chiefly small. About 90% of them have less than VND 10 billion of registered capital. 

Leading logistics enterprises included SNP, Gemadept, Transimex, IndoTrans, TBS Logistics, Tan Cang Sai Gon, Delta, U&I Logistics, Sotrans, and Minh Phuong Logistics.

Meanwhile, about 30 enterprises provided transnational services. Some boosted ventures and connectivity with domestic and foreign partners.

A few of logistics enterprises opened up overseas investment by launching representative offices in Laos, Cambodia, Myanmar, India, and formulating joint ventures in Belgium.

The MoIP reported that logistics manpower is weak especially in foreign languages and management competence. The country is expected to seek 200,000 logistics staffs in the 2015-2030 period. 

Addressing the meeting, Deputy Prime Minister Vuong Dinh Hue assessed that the report provides important database for the Government to develop the sector.

Logistics costs accounted for 20% of GDP but contributed only 4-5% of GDP. Thus Hue stressed the necessity to raise contribution of the sector and cut logistics costs for enterprises.

The MoIT was urged to work with ministries, agencies, and localities to assess the target program to develop and raise the competitiveness of logistics services in Viet Nam by 2025 in which the sector would contribute 8-10% of GDP, yearly expand 14-20%./. 

By Khanh Phuong

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