HCMC holds potentials to develop logistics

Monday, 20/11/2023 16:16
Ho Chi Minh City (HCMC) aims to develop logistics into a key service industry, with revenue growth reaching 15% by 2025 and 20% by 2030.

With a seaport system, favorable trade location and extensive regional connectivity in the southern region, HCMC leads the logistics competitiveness rankings announced by the Vietnam Logistics Business Association (VLA).

The VLA has just announced Vietnam's Provincial Logistics Competitiveness Index (LCI) 2022, which was conducted for the first time in Vietnam in a survey period of more than one year from August 2022 to November 2023.

Tan Cang Port (Photo: vneconomy.vn)

Over the past year, experts in the research team have conducted surveys with a large sample scale, conducting hundreds of hours of in-depth interviews and dozens of meetings to report updated progress as well as periodically consult with state management agencies, organizations, businesses and research units.

In the LCI 2022 report, 26 provinces and cities were selected based on their prominence in terms of Gross regional domestic product (GRDP), volume of circulated goods and number of logistics businesses. As a result, 21 localities in all economic regions in the country were evaluated and ranked on the LCI.

Accordingly, the top 5 in the logistics competitiveness index include: Ho Chi Minh City, Hai Phong, Binh Duong, Ba Ria - Vung Tau and Hanoi. Among them, Ba Ria - Vung Tau and Hanoi have equal indexes; following are Dong Nai, Da Nang, Bac Ninh, Long An and Can Tho.

Five localities on the expected list have not been evaluated because they did not receive complete survey results from logistics service businesses, including Lang Son, Thai Nguyen, Nghe An, Thanh Hoa and Thai Binh.

Moreover, there are some localities that show their potential for logistics development but have not been included in the 2022 evaluation list such as Vinh Phuc, Quang Ninh, Hung Yen, Thua Thien Hue, Quang Nam and Khanh Hoa.

It is expected that in the next assessment, these localities along with other localities with logistics potential will be included in the list of provinces and cities that need to be evaluated.

According to the HCMC Investment and Trade Promotion Center (ITPC), the city plans to build 8 logistics centers with a total area of about 750 ha, including: Cat Lai - Phu Huu - Thu Duc city (292 ha); Long Binh - Thu Duc city (54 ha); Linh Trung - Thu Duc city (74 ha); Cu Chi - Cu Chi district (15 ha); Tan Kien - Binh Chanh district (60 ha); Hiep Phuoc - Nha Be district (100 ha); and Tan Hiep commune, Hoc Mon district (150 ha).

In addition, projects with functions similar to logistics centers such as cold storage in Vinh Loc Industrial Park, e-commerce warehouse in Cu Chi district are also being built by businesses.

A corner of Hiep Phuoc – Nha Be Port (Photo: sggp.org.vn)

Currently, the city has approved the project "Developing HCMC's logistics industry to 2025, with a vision to 2030", striving for the growth rate of logistics service revenue of businesses to reach 15% by 2025 and 20% by 2030. The contribution rate of logistics to the city's GRDP will reach 10% by 2025 and 12% by 2030, contributing to reducing the country's logistics costs compared to national GDP to about 10% -15% by 2025.

In the period from 2030 with a vision to 2045, HCMC plays an important role in promoting socio-economic development and ensuring national defense and security in the Southeast region.

Therefore, experts believe that for the synchronous development of the national logistics system, it is necessary to focus on building an aviation logistics center associated with Long Thanh international airport, and investing in developing the port logistics system and international transshipment ports in Ba Ria - Vung Tau province and HCMC.

At the same time, HCMC will form industrial, urban, service and logistics belts along the Belt Road 3 and Belt Road 4 and regional expressways; developing the industrial - urban chain of Moc Bai - HCMC - Cai Mep - Thi Vai Port associated with the trans-Asia economic corridor./.

Compiled by BTA