Vietnam should have a strategy for the logistics sector to enable it to achieve higher growth, heard a conference in HCMC last week.

A view of the Tan Cang Cai Cui logistics center in Can Tho City 

Speaking at the conference on “Development of Infrastructure, Information System and Information Technology Application in Logistics,” Vietnam Trade Information Center (VTIC) deputy director Dinh Thi Bao Linh said Vietnam’s logistics sector has been rudderless.

In the Prime Minister’s Decision 200/QD-TTg on an action plan for improving the competitiveness of the logistics industry until 2025, Vietnam is envisaged becoming a logistics center of the region, but neither revenue target nor strategy has been adopted, Linh said.

According to Linh, in addition to developing domestic trade, the Government should allow other countries like Cambodia, Thailand, China and Laos to transship their goods via Vietnam ports to make the most of their logistics services.

Vietnam has the potential for logistics development as its air, maritime and rail transportation systems are able to provide good logistics services.

Trade liberalization has helped Vietnam expand trade ties with China, South Korea, Japan and Southeast Asia, among others.

“Trade between Vietnam and ASEAN countries has shot up by seven times since Vietnam became an ASEAN member in 1995. Thailand, Cambodia, Laos and Myanmar are importing more machines, oil and gas, iron and steel, and fertilizers from Vietnam,” she said.

The emergence of border economic zones and coastal industrial zones has boosted goods flow between Vietnam and other countries. “Higher cargo transportation and storage demand is the key factor for logistics to grow,” she noted.

Linh suggested the Government make the business environment more favorable by providing technical and financial assistance for logistics firms, investing more in logistics infrastructure, and develop high-quality human resources for the sector.

Nguyen Thanh Han, general director of Genuine Partner Group, said the Government should offer more incentives for local logistics companies, especially startups, so that they can compete with foreign rivals.

SGT