Vietnam’s logistics sector urged to contribute more to GDP

The Ministry of Industry and Trade has issued a report on the tasks to boost the development of the logistics sector in Vietnam.

Statistics from the Vietnam Logistics Business Association show that there are more than 4,000 logistics companies in Vietnam, 70% of them are in Ho Chi Minh City and neighboring localities. Vietnamese logistics companies are in small-scale and 90% of them have registered capital of around 430,000 USD. Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department of the Ministry of Industry and Trade, said: Vietnamese logistics companies are incompetent in terms of professionalism and skills. Most of them get contracts from foreign companies.

Deputy Prime Minister Vuong Dinh Hue, Chairman of the National Steering Committee for ASEAN Single Window, National Single Window, and Trade and Logistics Facilitation (Committee 1899), said logistics fees of enterprises account for 20% of GDP but the logistics sector's contribution to GDP is only 4-5%. He urged the logistics sector to increase its contribution to GDP: The Ministry of Industry and Trade needs to work with relevant ministries, sectors and localities to study the Master Plan on Logistic Service Development to increase the sector's competitiveness, its contribution to GDP to 8-10% by 2025, and its annual growth 14-20%.

Source: VOV5