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Vietnam's logistics sector and targets to 2045

(VLR) The Resolution of the 13th National Party Congress set out the goal of “making Vietnam a prosperous developed country in 2045”. Each enterprise in the logistics service sector - a key economic sector - has their own aspiration and is striving to realize the goal.

The logistics service industry has been playing an important role in the country’s socio-economic life

The logistics service industry has been playing an important role in the country’s socio-economic life

The logistics service industry has been playing an important role in the country’s socio-economic life. The development of the sector to international standards will directly contribute to the improving of its competition abilities- with export keeps being a spearhead of growth that will make Vietnam a developed country with the modern industry and high-income in 2045. According to data forecast by the General Statistics Office, Vietnam’s population in 2045 will reach 107,79m people. Thus, Vietnam’s size of the economy in 2045 will be around USD 1,778bn, equally to that of Korea’s in 2018.

Efforts to improve enterprises’ competition abilities

Competition abilities and improving it ceaselessly together with innovations from each enterprises is a decisive factor in implementing the “Aspiration 2045”.

To achieve the goal, we should have strong logistics enterprises of international brands which is capable to compete regionally and globally. In addition, we should apply science and technology to catch up with developments of the logistics service worldwide and we should also have a human resource of high quality to carry out global logistics activities.

of logistics, technology and domestic and international logistics legal matters.  Bringing the logistics service sector to the world top of World Bank’s LPI, the target: in 2045, Vietnam will rank after Singapore in the ASEAN region

of logistics, technology and domestic and international logistics legal matters. Bringing the logistics service sector to the world top of World Bank’s LPI, the target: in 2045, Vietnam will rank after Singapore in the ASEAN region

Building a qualified business community to provide international services. Currently, over 80% of VLA’s members are small and medium-sized enterprises. Only a few of them are strong 3PL enterprises. Therefore, we should quickly develop enterprises of 3PL, 4PL and 5PL to provide highly international package services.

Enterprises apply digital-platform applications for logistics activities based on technologies of Blockchain, AI, and Cargowise… connecting with global agency networks.

Enterprises should have creative and active staff members with good English skills and high knowledge of logistics, technology and domestic and international logistics legal matters.

Bringing the logistics service sector to the world top of World Bank’s LPI. The target: in 2045, Vietnam will rank after Singapore in the ASEAN region; contributing to GDP from 8% - 10%; growth rate from 14% - 15% pa. Logistics costs ranked in the ranks of industrial developed countries, equivalent to 8% - 10% of GDP; develop environment-friendly green logistics.

Strongly developing agricultural logistics (agro-logistics), linking logistics with activities of production, circulation and import-export of agricultural and sea products, especially connecting Vietnam’s goods to global markets; optimizing logistics costs for Vietnam’s goods to improve Vietnam’s competition abilities in import-export. PM’s guidance in the Official Letter no.7709/VPCP-CN, dated September 15th, 2020, required “there must be a cargo airline with a specialized transporting fleet serving Vietnam’s agricultural produce for special routes,” and VLA’s key association members together founded ACG specializing transporting cargo to regional countries.

The government’s roles

To implement the “Aspiration 2045”, the guiding and supporting role of the Government is of importance. Particularly as follows:

Creating an institution, a legal framework that transparently adjusts logistics and is applied consistently in authorities of all levels; deploying effectively the Strategy of Developing Vietnam’s Logistics Service Sector in the period of 2025 - 2035, vision to 2045”. Currently, many countries in the region have had developing strategies, while we just had the Action Plan only.

Completing logistics infrastructure structures, both hard infrastructures and soft ones (IT); developing the North - South Expressway, the expressway connecting the Mekong Delta, connecting to seaports, especially deep-water seaports; building the cargo transport high-speed North - South railroad and connecting it to those of Eastern Europe countries and building railroads connecting to key seaports to transport and release cargo; developing overloaded seaports, especially those serving import-export cargo to distant markets and inner Asia markets. Currently, over 90% of our importexport cargo being transported by seaway. At the same time, developing local waterway infrastructure structures to support road transport and developing multi modal transport effectively; building specialized air fleet to transport specialized cargo, which we do not have currently.

Building and completing logistics infrastructure serving agriculture; developing logistics centers at important areas near production centers and seaports; focusing on extended air logistics centers outside airports serving specialized goods, especially import- export agriculture produces; making Vietnam to be a regional and international logistics center in 2045 with high competition ability.

With determination and efforts to contribute to the rise up of the whole nation, our logistics service providers believe we will reach the goal of “Making Vietnam a prosperous developed country in 2045”.

Nguyen Tuong - Dao Trong Khoa

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