LCI impacts logistics costs

Also according to Hiep, together with positive impacts from tasks of planning related policies to develop logistics service, in a long-term LCI will help to cut logistics costs and support export and business.

Besides, LCI helps to create image and prestige for both Vietnam and localities in creating a favorable environment for investment and business; it also helps localities to have reference, experience, and practical lessons from other localities and apply them in their places. “Especially, gures and assessments in the index reports will help domestic and foreign enterprises a lot in making choices of location and in tasks of expanding their business. At the same time, LCI helps to raise social awareness about the logistic service sector,” said the President.

Tran Thanh Hai- Deputy Director of the Import- Export Department- the Ministry of Industry Trade- highly appreciated VLA ideas. Hai said in the past few years, there have been remarkable improvements in term of logistics index: Vietnam’s LPI ranked the 39th in 160 countries and territories. In ASEAN region, Vietnam’s LPI is in top 3 with the point of 3.27, belonging to the group of newly emerged markets with the growth rate ranging from 14-16%. is is results from e orts of the logistics business community and supports from related ministries and sectors.

Hai also said about targets of development of the logistic sector to 2025: its contribution proportion to GDP reaches 5- 6%; logistics growth rate reaches 15-20%; outsourcing rate reaches 50-60%; logistics costs reduced equivalently to 16-20% GDP; global LPI ranking reaches the rank 50th or over. To achieve these targets, it is necessary to have synchronous solutions from ministries, sectors, local authorities and enterprises. ere have been localities where logistics development has not receive proper attention, leading to the lack of synchronicity in planning or in regional linkage.

The leader of the Import- Export Department also pointed out shortcomings in the sector as high costs; lack of linkage among logistics enterprises and production enterprises; weakness in terms of scale, potentials and progress of entering global markets, resources for developments and professionality. “LCI project will help measure infrastructures, policies of logistics developments in provinces and cities in Vietnam and help them to see their positions in the logistics picture of the country. It can be basis for improvements and for a favorable environment of investment and business,” expected Hai.