(TCCT) On the morning of December 02, in Ba Ria - Vung Tau province, the Ministry of Industry and Trade coordinated with the People's Committee of Ba Ria - Vung Tau province to organize the plenary session of the Vietnam Logistics Forum 12 with the theme "Free Trade Zone - Breakthrough solutions to promote logistics growth".
Prime Minister Pham Minh Chinh attended the plenary session of the Forum. Also attending the event were Minister of Industry and Trade Nguyen Hong Dien; Minister of Planning and Investment Nguyen Chi Dung; Minister of Transport Tran Hong Minh; Secretary of the Ba Ria - Vung Tau Provincial Party Committee Pham Viet Thanh; leaders of ministries, branches, provinces and cities; domestic and foreign organizations and enterprises, with a total of more than 2.000 delegates attending in person and online.
Prime Minister Pham Minh Chinh, Minister of Industry and Trade Nguyen Hong Dien and delegates attend the plenary session of the Vietnam Logistics Forum 2024 - Photo: VGP/Nhat Bac
Vietnam – Top 10 emerging logistics markets
Vietnam Logistics Forum is an important annual event organized by the Ministry of Industry and Trade every year since 2013.
With the theme “Free trade zone, breakthrough solution to promote logistics growth”, Vietnam Logistics Forum 2024 Focus on highlighting policies to encourage and attract the development of free trade zones, aiming to make Vietnam a strong country in logistics, contributing to promoting the industrialization and modernization of the country, especially in the era of national development.
At the same time, promote logistics enterprises to apply advanced and modern technology in supply chain operations; find solutions to improve competitiveness for Ba Ria - Vung Tau province and the Southeast region; especially create an environment for linking logistics enterprises, investors and management agencies to develop Vietnam logistics.
Speaking at the opening of the forum, Minister of Industry and Trade Nguyen Hong Dien emphasized that Logistics is a service industry that is considered the "blood vessels" of the economy, playing an important role in connecting and supporting businesses and production facilities to reduce costs, reduce product prices, improve competitiveness, and promote socio-economic development.
Minister of Industry and Trade Nguyen Hong Dien delivers the opening speech at the Vietnam Logistics Forum 2024 – Photo: VGP/Nhat Bac
As a country located in a dynamically developing region of the world, where the flow of goods is concentrated and the economy is highly open (over 200%), with 17 Free Trade Agreements signed and implemented with nearly 70 countries and territories (including most of the world's major economies, accounting for 90% of global GDP); import-export turnover and e-commerce always grow at double-digit rates, Vietnam is considered one of the markets with great potential and conditions for developing logistics services.
Recognizing that importance, in recent times, the Party and State of Vietnam have issued many mechanisms, policies and directed the effective implementation of solutions to remove difficulties, reduce costs, improve competitiveness, and create a favorable environment for the development of the logistics service industry.
With the attention and close and drastic direction of the Prime Minister; the active and effective participation of ministries, branches and localities; especially the outstanding efforts of the business community, our country's logistics service industry has made quite strong developments (an average increase of 14-16%/year), gradually affirming the brand and position of the Industry in the region and the world. In 2024, Vietnam will be evaluated and ranked by international organizations in the Top 10 emerging logistics markets; Top 4 in the world in the Logistics Opportunity Index and Top 43 in the Logistics Performance Index.
However, besides the achieved results, the Minister of Industry and Trade also frankly said that the industry Services of Logistics Vietnam's development has not been commensurate with the country's potential and advantages; logistics costs are still high, competitiveness is low; the shortage of human resources, especially high-quality human resources, and the lack of infrastructure connectivity are major "bottlenecks" that have hindered the development of logistics services in recent times.
In addition, geopolitical changes and new business trends (such as supply chain shifts, cross-border e-commerce, green and sustainable development standards) along with increasingly fierce strategic competition between major countries also pose many new challenges to the development of the economy in general and logistics services in particular.
Free Trade Zones – Breakthrough Solutions to Boost Logistics Growth
Continuing the success of previous years, with the theme "Free Trade Zones - Breakthrough Solutions to Promote Logistics Growth", the Vietnam Logistics Forum 2024 aims to send a strong message from the Government on attracting and encouraging investment, developing Free Trade Zones with strong, feasible policies and open, attractive mechanisms to create a breakthrough driving force to promote economic development in general and the logistics service industry in particular.
Minister Nguyen Hong Dien said that the Ministry of Industry and Trade, as the focal point for state management of logistics services, is submitting to the Prime Minister a draft Strategy for the development of Vietnam's logistics services for the period 2025 - 2035, with a vision to 2050; accordingly, the draft Strategy has proposed many synchronous and drastic solutions (including solutions on building a Free Trade Zone) to realize the goal of turning Vietnam into a strong country in logistics, actively contributing to the cause of industrialization and modernization of the country. The Minister affirmed that these are very important contents, of practical relevance not only for the development of Vietnam's logistics services industry, but also important for the development of the country's economy in the new era - the era of national development.
Prime Minister Pham Minh Chinh and delegates perform the ceremony to announce the Vietnam Logistics Report 2024 – Photo: VGP/Nhat Bac
At the plenary session, delegates enthusiastically discussed the development of Vietnam's logistics; potentials, strengths; mechanisms, policies, and orientations for Vietnam's logistics development. In particular, delegates had many presentations proposing orientations for Vietnam's logistics development to reach out to the new era; Vietnamese logistics enterprises at the turning point of the era; experiences, trends in logistics development and free trade zones - opportunities and recommendations for Vietnam's logistics industry...
Delegates proposed promoting the formation of free trade zones, international transit ports, building a fleet of container ships, a fleet of specialized cargo aircraft; promoting international cooperation, building strong Vietnamese logistics enterprises, strongly developing transport infrastructure, warehouses, technological innovation, training and improving human resources in the logistics industry, developing public-private partnership models in the logistics sector, perfecting legal frameworks, and having policies to encourage foreigners to develop Vietnamese logistics such as tax policies, visas for foreigners, etc.
Prime Minister Pham Minh Chinh highly appreciated the organization of the Forum with high determination and a strong spirit of innovation and creativity - Photo: VGP/Nhat Bac
According to the Government Electronic Information Portal, speaking at the Forum, Prime Minister Pham Minh Chinh highly appreciated the organization of the Forum with high determination and a strong spirit of innovation. Report of Ministry of Industry and Trade and the opinions presented at the Forum fully and comprehensively assessed the results of implementing the national logistics development task in the period of 2017-2023; pointed out the shortcomings and limitations; proposed directions, goals and tasks for the coming period.
The Prime Minister emphasized a number of results and achievements in the development of Vietnam's logistics industry in recent times, first of all raising awareness of the position, role and importance of the logistics industry, of Vietnam's position on the world logistics map, and the ability to turn Vietnam into a world logistics center.
Along with that, the legal framework, mechanisms and policies continue to be improved; business conditions, administrative procedures and specialized inspections have achieved positive results, shifting strongly from pre-inspection to post-inspection.
Logistics infrastructure is developing rapidly with many large, modern projects, promoting a reasonable structure, harmoniously connecting transport modes, and reducing costs. In particular, road infrastructure has many breakthroughs, the expressway system has reached over 2.000 km. Vietnam is also determined to build a North-South high-speed railway, connecting railways with Laos and China. The airport system is developing relatively well. Inland waterway capacity is improved with 298 inland ports; forming gateway seaports, specialized wharves associated with industrial parks and industrial centers (with 286 ports, 95 km of wharves, 25 international routes...); completing separate cargo handling areas at airports; promoting investment in logistics centers (currently there are 69 large and medium-sized centers), strongly shifting to new generation centers applying 4.0 technology...
The number of logistics enterprises continues to increase, become modern, and become increasingly competitive. In 2023, there will be 7.919 logistics business newly established; Vietnam leads ASEAN in the number of licensed businesses for sea transport to and from the United States.
Logistics development tends to be more positive, promoting the diversification of transportation methods, gradually reducing dependence on road transport. Logistics human resource development is promoted; currently, the focus is on developing 3 levels of training (university and post-university; college, intermediate; short-term training) and 49 universities with logistics majors.
Many international rankings of Vietnam's logistics have improved. In 2023, Vietnam's Logistics Performance Index ranked 43/139 (ranked by the World Bank), component indices of international transport efficiency, infrastructure and customs efficiency have improved; Vietnam has been ranked among the top 5 ASEAN markets.
The Prime Minister acknowledged and highly appreciated the efforts of the Ministry of Industry and Trade, ministries, sectors, localities, and the Vietnamese logistics business community, achieving important results, creating a new look for the logistics industry - Photo: VGP/Nhat Bac
On behalf of the Government, the Prime Minister acknowledged and highly appreciated the efforts of the Ministry of Industry and Trade, ministries, branches, localities, and the Vietnamese logistics business community, achieving important results, creating a new look for the logistics industry, and making important contributions to the overall achievements of the country.
However, in addition to the important achievements, there are still limitations and shortcomings related to the awareness of the logistics industry and the potential and position of Vietnam in this field. Logistics costs are still high, reducing the competitiveness of products, businesses and the economy; the scale of the industry compared to the scale of Vietnam's GDP and the scale of the global logistics industry (up to 9.000 billion USD) is still limited. Human resources are still weak and lacking; businesses are not developing strongly, there is no mechanism for development; the connection between transport modes and warehouses is still limited; logistics infrastructure is still backward.
3 goals, 7 solutions to develop the logistics industry in the coming time
The Prime Minister emphasized that in the coming time, with the integration trend, international trade will increasingly develop; on the other hand, the world must face many national, comprehensive, global problems that no single country can solve.
Domestically, the new era of development and the promotion of exploitation of marine space, underground space, outer space, digital transformation, and the promotion of three strategic breakthroughs in institutions, infrastructure, and human resources will also pose new requirements, while creating conditions to strongly promote the logistics industry, reduce time and costs, and enhance business competitiveness.
In that context, logistics services play an increasingly important role, making practical contributions to the country's development and integration, participating in solving global problems.
Therefore, the Prime Minister emphasized that the development of the logistics industry must follow new trends such as digital transformation, green transformation, circular economic development, sharing economy, knowledge economy; in the spirit of "resources originating from thinking and vision, motivation originating from innovation and creativity, strength originating from people and businesses", "creativity to fly high, innovation to reach far, integration to develop".
The Prime Minister clearly stated 3 goals for the development of the logistics industry, contributing to the major goal of national development: (i) Reducing logistics costs compared to Vietnam's GDP from 18% to 15% in 2025; (ii) increasing the proportion of Vietnam's logistics industry in GDP from 10% to 15% and striving to reach 20%; at the same time, increasing the proportion of Vietnam's logistics industry compared to the scale of the global logistics industry from 0,4% to 0,5% and striving to reach 0,6%; (iii) increasing the growth rate of Vietnam's logistics industry from the current 14-15% per year to 20%.
The Prime Minister emphasized 7 solutions for developing the logistics industry, which are also 7 breakthroughs to achieve the 3 set goals, contributing to achieving double-digit economic growth each year in the coming years.
first, further raise awareness of the position, role, and importance of the logistics industry and Vietnam's position in the center of the Asia-Pacific region to exploit and maximize the potential differences, outstanding opportunities, and competitive advantages in the world logistics chain.
Monday, creating institutional breakthroughs in an open direction to develop the industry to its full potential, with the viewpoint that "institutions are the knot of knots", and "breakthroughs of breakthroughs".
Tuesday, building modern and smooth logistics infrastructure to reduce costs, increase product competitiveness, especially developing aviation, maritime and high-speed railway industries.
Wednesday, building smart management and training high-quality human resources for the logistics industry.
Thursday, promote integration, logistics diplomacy and modernize the domestic logistics industry.
Friday, build and develop a free trade nation, while effectively managing and firmly protecting independence, sovereignty, unity and territorial integrity, and maintaining an environment of peace, friendship, cooperation and development.
Saturday, closely connecting modes of transport (air, sea, rail, road and inland waterways) and connecting with international traffic, with the world's free trade zones.
Prime Minister Pham Minh Chinh and delegates at the Vietnam Logistics Forum 2024 – Photo: VGP/Nhat Bac
The Prime Minister requested that, based on their assigned functions, tasks and powers, agencies and localities actively and proactively implement solutions according to the 7 above-mentioned breakthrough solutions. In particular, the Ministry of Industry and Trade shall preside over and, together with ministries and sectors, develop a logistics development strategy, a national free trade development project, and develop free trade zones at the border.
The Prime Minister stated that the Central Government promotes decentralization and delegation of power along with resource allocation, improves implementation capacity and strengthens inspection and supervision; localities enhance self-reliance, proactiveness, "locality decides, locality acts, locality takes responsibility", and supports business development.
The Prime Minister said that the Government will continue to promote its creative role, focusing on building strategies, planning, development plans, institutions, mechanisms, and policies, creating an open environment for development, designing tools for resource mobilization, monitoring, and inspection.
The Prime Minister asked partners and businesses to enhance their initiative and creativity, participate in policy consultation, and build and perfect institutions in the spirit of "respecting practice, closely following practice, starting from practice, taking practice as a measure", and properly resolving the relationship between the State, the market and society.
The Prime Minister asked international friends and partners to continue building good relationships with Vietnam. Vietnam persistently and steadfastly implements its foreign policy of independence, self-reliance, diversification, and multilateralization, and is a friend, a reliable partner, and a responsible member of the international community, for the goal of peace, stability, cooperation, and development.
Source: Industry and Trade Magazine