15/05/2022
U&I Logistics - Logistics plays an important role in the production, circulation, import and export of goods. However, at present, the logistics of Ho Chi Minh City still have many limitations in terms of infrastructure, service quality, etc. The cost is very high, nearly twice as much as that of developed countries, limiting the competitiveness of businesses.
On April 14, at the seminar "Logistics of Ho Chi Minh City takes off" within the framework of the conference "Ho Chi Minh City Customs Department and business community join hands for economic recovery" held by the municipal Customs Department and the city Logistics Association, many people think that the logistics industry is very important and is the focal point to help Ho Chi Minh City develop, but there are still many problems that need to be removed soon.
Speaking at the seminar, Mr. Bui Ta Hoang Vu, Director of the Ho Chi Minh City Department of Industry and Trade, said that despite playing an important role, the city's logistics industry currently has five bottlenecks. In which, unsynchronized infrastructure is an important issue; railway, land, waterway and aviation sectors are not completed. Currently, the Government has just restarted Ring Road No.3, which is considered a good sign.
According to Mr. Hoang Vu, the city has up to 4,000 enterprises (DN) operating in the field of logistics with 2,000 warehouses. However, the application of information technology (IT) in the industry is still at a low level. Low application indexes (including regulatory agencies) make logistics costs high, double that of other countries, making it difficult for businesses operating in the industry. If Vietnam does not take measures to reduce logistics costs, it will be difficult to compete and take advantage of opportunities from trade agreements ...
Ms. Dang Thi Minh Phuong, Chairwoman of the Ho Chi Minh City Logistics Association (HLA), said that the customs industry plays an important role in deciding whether all goods flows are stable or not. The operation of the customs industry has had many positive changes, especially during the fourth wave of COVID-19. Thanks to the simplification of customs procedures, e-customs have benefitted logistics activities. However, the problem of infrastructure synchronization and labor shortage are very urgent, and needs training support from the customs industry.
GUNZE (Vietnam) Co., Ltd in Tan Thuan Export Processing Zone, District 7 exports and imports 60 containers of goods and production materials each month through Cat Lai Port, Thu Duc City. The road from the factory to the port is only about 15 km, but the logistics cost is up to 5 million VND / 1 container of goods. This cost is higher than some other countries in the region such as Thailand, Singapore... by 30-40%, increasing production costs and affecting the competitive prices. In addition, the logistics infrastructure of Ho Chi Minh City such as warehouses is limited, bridges and roads connecting to ports are occasionally overloaded, which greatly affects businesses, especially jams.
According to Ms. Chiem Phuong Thao, in charge of import and export management of GUNZE (Vietnam) Co., Ltd, it takes 1-2 hours for a container truck to transport goods from the factory to the port, but traffic jams extend the time to half a day. This situation causes great damage to businesses because they cannot deliver goods and deliver raw materials to production lines on time. “Vietnam's logistics costs are higher than other countries in the region. We tried to produce to meet the contract but got stuck in traffic, rolled containers, we had to compensate for the contract. In the opposite direction, the goods from the ports are stuck in traffic jams, so the whole production line and our workers have to sit and wait, "-Ms. Chiem Phuong Thao said.
The case of GUNZE Co., Ltd is also the situation that many import-export businesses in Ho Chi Minh City are facing. The limitations and bottlenecks of HCMC's logistics have been recognized by the city's leaders. In which, the biggest difficulty is the unsynchronized infrastructure, including railway, land, waterway and airway. Besides, in the past, logistics services in Ho Chi Minh City were mostly carried by private enterprises, so they remained fragmented. Private enterprises mostly provide basic and single services such as packing, shipping .... Therefore, Vietnam's logistics costs are very high, accounting for 19% of production costs, while developed countries account for less than 10%.
According to Mr. Bui Ta Hoang Vu, in the implementation plan of Ho Chi Minh City Logistics Development Project for the period of 2025-2030, 6 solutions have been clearly stated, in which the development of a logistics center system is urgent. Currently, the centers develop spontaneously, there is no public-private partnership, so there is no logistics center that is adequate, whether small or large. "Ho Chi Minh City needs to invest in 7 logistics centers in the form of calling for investment. In which, Thu Duc City has 3 logistics centers in areas near Long Binh port, Cat Lai port, high-tech park... by next year. In 2023, all procedures for consulting and calling for investment must be completed, along with promoting regional linkages with neighboring provinces such as Dong Nai, Binh Duong, Long An, Tay Ninh... Ho Chi Minh City needs more consulting units to implement the operation of logistics centers" - Mr. Bui Ta Hoang Vu informed and added, in the development direction of the logistics industry, digital conversion is the priority solution.
Mr. Dinh Ngoc Thang, Director of Ho Chi Minh City Customs Department, said that in the past, the city's customs industry has had recommendations to cut logistics costs, especially specialized management activities combined with goods inspection to form closed circles; implementing projects to prevent congestion at Cat Lai port and other areas. In particular, for better customs-related transactions, there must be a centralized management system and electronic customs transactions. Ho Chi Minh City Customs Department has also boldly proposed to collect seaport infrastructure fees from April 1 and find ways to propose measures to develop a synchronous ecosystem including tourism and digital conversion. Regarding personnel, Ho Chi Minh City Customs Department can combine HLA and schools to assist in human resource training, especially promoting customs agency activities to make the procedures of enterprises convenient and quick.
Mr. Thang emphasized that there are bases for the city's logistics industry to spread its wings. "Ho Chi Minh City has a convenient location, deep-water ports, industrial parks, high-tech parks along with many signed agreements with the ability to attract 260 billion USD in the coming time, especially, international organizations remain considering Vietnam an attractive destination with good disease control, Ho Chi Minh City attracts tourists, accounting for 50% of the foreign market share, at the current rate of import and export, by 2030, Vietnam will attract a large amount of goods" - Mr. Thang cited.
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