Vietnam’s logistics industry facing infrastructure, warehousing issues

0
80




Though Vietnam’s logistics industry witnessed robust growth in recent years, it faces several challenges like service costs, infrastructure bottlenecks, warehousing, equipment and human resources, deputy minister of industry and trade Do Thang Hai told a recent conference with the theme ‘Development of Vietnam’s logistics industry with Europe-America region’.

Hai said the World Bank’s most recent logistics performance index ranked Vietnam 39th out of 160 countries and third in Southeast Asia. This is the country’s highest position to date.

“Logistics is also one of the fastest-growing and most stable industries of Vietnam with an average growth rate of 14-16 per cent per year, contributing to GDP [gross domestic product] from 4-5 per cent,” he was quoted as saying by Vietnamese media reports.

Though Vietnam’s logistics industry witnessed robust growth in recent years, it faces several challenges like service costs, infrastructure bottlenecks, warehousing, equipment and human resources,deputy minister of industry and trade Do Thang Hai told a recent conference with the theme ‘Development of Vietnam’s logistics industry with Europe-America region’.

He said the country has about 30,000 enterprises operating in logistics.

However, while Europe and America are major trade partners, congestion on container transport routes, especially in transport routes, as well as a large shortage of empty containers continuing from 2020, has seriously affected the export of goods to these markets.

In the first ten months of 2021, the total export turnover of seasonal products like apparel, footwear, agricultural products, electronics, and consumer goods to the US reached $24.8 billion, accounting for 32.8 per cent of the total export turnover of Vietnam to the United States.

If these businesses continue to face difficulties in logistics in the long run, they will lose their direct link with the transport chain and have to depend on other businesses.

Around 90 per cent of exports from Viet Nam depend on foreign shipping companies. A participant of the conference suggested that Vietnam should develop its own logistic routes, adding that a local company like Hoa Phat could produce the empty containers.

Fibre2Fashion News Desk (DS)





Source link