The Hanoitimes - Vietnam considered logistics a highly-added value sector, which should have a high and sustainable growth rate, the VnEconomy reported.
Deputy Prime Minister Vuong Dinh Hue said the contribution of Vietnam’s logistics sector to the GDP remains at 3 – 4%, while enterprises’ high logistics costs is against the global trend.
Vietnam considered logistics a highly-added value sector, which should have a high and sustainable growth rate, Hue said at the Vietnam Logistics Forum 2018 on December 7.
According to Hue, the service sector is expected to grow faster than the national average GDP growth, of which, logistics is the area which should be boosted the most.
The Vietnamese logistics industry grows at a rate of 12 – 14% per year over the last three years. The country is currently ranked 26th out of 160 countries and territories in the World Bank’s ranking in terms of logistics, up 25 places compared to the previous year and the third among ASEAN countries.
Hue stated the key issue for Vietnam’s logistics to move forward would be a higher contribution to the economy and lower costs for enterprises.
He added that the government has to complete a master plan for development, including the logistics sector. Moreover, it is vital to create a service value chain, which the government could not directly involve in.
Enterprises and logistics associations, therefore, play a key role in this aspect, Hue stated.
Nguyen Dinh Cung, director of the Central Institute for Economic Management (CIEM), said in a conference in October that countries at the same level of per capita income with Vietnam with the best logistics performance experience additional growth of 1% in GDP and 2% in trade, referring to a conclusion made in the World Bank 2010 report.
Improving logistics performance has therefore become a major policy objective due to its beneficial impact on the economy, Cung added.