Commercial and manufacturing enterprises are less burdened with logistics costs
The proportion of logistics costs in commercial and manufacturing enterprises tends to decrease, according to a survey by the Ministry of Industry and Trade.
According to survey results in the newly published “Vietnam Logistics Report 2023” by the Ministry of Industry and Trade, about 76.9% of businesses surveyed said logistics costs account for less than 15% of total production and business costs. Only nearly 16.5% have a cost of 15-20%. While only 6.59% spends more than 20% of production and business costs on logistics.
Logistics costs are an input cost for businesses, contributing to the cost of goods and services. Therefore, high costs lead to high prices, reducing the competitiveness of businesses.
According to a 2014 WorldBank report, Vietnam’s logistics costs account for about 20.9% of GDP. By 2018, calculations by the Vietnam Logistics Service Business Association (VLA) show that the average cost is 16-18%. Thus, compared to previous years, the report evaluates progress in minimizing waste and optimizing logistics activities of businesses this year.
However, when surveying the criterion “price consistent with quality” of logistics, 63% of businesses surveyed rated it as average – poor. Meanwhile, the rate of good – good comments only accounts for 37%. In addition, many other criteria such as: professional capacity of employees; The ability to solve unexpected problems and time management also have about 50% of bad reviews.
Import and export of goods at Tan Vu port – Hai Phong on July 13.Photo:Giang Huy
At the recent Vietnam Logistics Forum 2023, Mr. Tran Tuan Anh, Head of the Central Economic Commission, said that logistics costs in Vietnam are still higher than the world average (about 10%). “Despite continuous innovation and development, in order for Vietnamese products to compete effectively both internationally and domestically, logistics still has many obstacles,” he said.
This year, Vietnam ranked 43rd out of 139 economies ranked on WorldBank’s Logistics Performance Index (LPI), the same rank as the Philippines, and behind Singapore, Malaysia, and Thailand. Compared to 10 years ago, Vietnam increased 10 places but fell 4 places compared to last year.
Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department, Ministry of Industry and Trade, said that to develop Vietnam’s logistics industry, four strategies are needed, including: improving business capacity, enhancing digital transformation, and developing human resources. and develop green logistics.
Specific breakthrough solutions such as soon forming a transshipment port and a national fleet (container ships and cargo aircraft fleet). “This is the necessary time to form a national fleet. In addition, the form of free trade zones is also of interest to many localities, but there is no legal basis, the policy needs to be completed soon,” Mr. Hai acknowledged.
Along with that, a number of other necessary measures such as capital incentives, access to land, attracting investment – developing the logistics market, and establishing the National Council for Logistics Services Development.
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