Local logistics firms meet 25% of demand

Illustration photo

Mr. Hue made the announcement yesterday at the Viet Nam Logistics Forum 2020 (VLF). 

In 2020, Ha Noi’s gross regional domestic product (GRDP) is set to expand by over 4% year-on-year, significantly higher than the national average which is estimated at 2.5 – 3%. Its state budget revenue could reach VND280 trillion (US$12.1 billion).  

Additionally, the city’s industrial production index is forecast to grow by 4.7% and retail sales by over 10%. All these major economic indicators are much higher than the corresponding national average amid the Covid-19 pandemic.  

According to Mr. Hue, while the country’s logistics sector remains third in Southeast Asia with a market size of US$40 – 42 billion, logistics costs are still high compared to those in other regional countries and continue to be a bottleneck to local firms’ competitiveness.

This is particularly important as Viet Nam is now a member of a number of free trade agreements, including the CPTPP, EVFTA and RCEP.

Mr. Hue assessed that with eight editions since 2013, the annual VLF has become a prestigious event which attracts numerous logistics firms and relevant partners. 

The official also praised the main theme of the eighth edition:“Reducing logistics costs, improving business environment, enhancing competitiveness in the context of international economic integration."  

He pointed out seven proposals including improvement of public administration, simplification of administrative procedures especially cross-border ones, investment in modern infrastructure in favor of less logistics costs, assessment of capital accession and absorbing for logistics firms and start-up businesses on this field; encouragement of IT applications,building of logistics network in combination with e-commerce,and development of new technology solutions in favor of clean energy usage and less environmental pollution./.

By Kim Anh