Demand for logistics services has risen rapidly, but theplan to develop a professional logistics centre in HCM City is still onthe drawing board, experts say.
In recent years, thecountry poured money into infrastructure projects, but the lack of aprofessional logistics industry was retarding the competitiveness ofthe economy, according to experts.
With 600 to 700 logistics companies out of a total of 800 to 900 in thecountry, HCM City has many advantages to develop a logistics industry,especially in marine, interior waterways, air, rail, road and pipelinetransport services.
In an effort to develop a seaport and interior waterway systems, thecity government last year ordered the HCM City Export Processing ZoneAuthority (Hepza) to map out a scheme to build a professional logisticshub for the 2010-20 period. But to date, the plan has not been carriedout because of dis agreements among agencies, according to Nguyen VanMinh, director of the Industrial and Information Service Centre underHepza.
Currently, most logistics services, including transportation,warehousing and yard storage of goods and cargo were done by foreigncompanies, Minh said.
According to the Vietnam Freight Forwarders Association, domesticlogistics companies can meet only 25 percent of local demand.
With the small size and limited ability of local companies, includingout-of-date technology, the companies can offer only limited services.
Marine transportation services-a key logistics services-transport 90percent of import-export cargo, but local companies can meet only 18percent of that demand, according to the Vietnam MaritimeAdministration.
Demand for logistics services is expected to soar, and the industrywill become a key economic sector, contributing up to 15 percent of thecountry’s total GDP, experts have said.
More international companies are eager to join the Vietnam market.
Under Vietnam ’s WTO commitments in the logistics sector, restrictionson the percentage of foreign capital contributions, as well as otherrestrictive conditions, will be gradually removed. By 2012-14, capitalcontributions can be wholly invested from foreign sources.
Experts said the city should consider hastening development of aprofessional, local logistics industry before it was too late./.
In recent years, thecountry poured money into infrastructure projects, but the lack of aprofessional logistics industry was retarding the competitiveness ofthe economy, according to experts.
With 600 to 700 logistics companies out of a total of 800 to 900 in thecountry, HCM City has many advantages to develop a logistics industry,especially in marine, interior waterways, air, rail, road and pipelinetransport services.
In an effort to develop a seaport and interior waterway systems, thecity government last year ordered the HCM City Export Processing ZoneAuthority (Hepza) to map out a scheme to build a professional logisticshub for the 2010-20 period. But to date, the plan has not been carriedout because of dis agreements among agencies, according to Nguyen VanMinh, director of the Industrial and Information Service Centre underHepza.
Currently, most logistics services, including transportation,warehousing and yard storage of goods and cargo were done by foreigncompanies, Minh said.
According to the Vietnam Freight Forwarders Association, domesticlogistics companies can meet only 25 percent of local demand.
With the small size and limited ability of local companies, includingout-of-date technology, the companies can offer only limited services.
Marine transportation services-a key logistics services-transport 90percent of import-export cargo, but local companies can meet only 18percent of that demand, according to the Vietnam MaritimeAdministration.
Demand for logistics services is expected to soar, and the industrywill become a key economic sector, contributing up to 15 percent of thecountry’s total GDP, experts have said.
More international companies are eager to join the Vietnam market.
Under Vietnam ’s WTO commitments in the logistics sector, restrictionson the percentage of foreign capital contributions, as well as otherrestrictive conditions, will be gradually removed. By 2012-14, capitalcontributions can be wholly invested from foreign sources.
Experts said the city should consider hastening development of aprofessional, local logistics industry before it was too late./.
