It was one of a series
of conferences on a wide range of themes such as infrastructure
development, climate change response and agricultural chains held in the
past seven months aimed at developing the region.
The deputy PM said the region possessed great potential for logistics
development with an extensive network of waterways, but that currently
up to 70% of goods for export must be transported to Ho Chi Minh by
road, causing costs to soar.
The strong growth of air passenger and freight transport in recent
years was also an opportunity for air logistics, added Deputy PM Hue.
The Ministry of Industry and Transport has projected that freight
handled in the Mekong Delta could reach between 25-28 million tonnes a
year by 2020 and 66.5-71.5 million tonnes by 2030.
Such figures indicate that the region has huge demand for logistics
development to distribute and export goods but that so far no logistics
centre has been established in the region.
Vietnam currently has six logistics centres that have been put into
operation, each in Hai Phong, Ho Chi Minh City and Quang Ninh Province
and three in Binh Duong Province, while some are under construction or
have just been licensed.
Deputy PM Hue said logistics costs accounted for 10-13% of GDP in
developed countries and 15-25% in developing ones, so if such costs were
cut, it would make significant contributions to enhancing the nation’s
Minimising logistics costs is even more meaningful to Vietnam when such costs now account for at 20-25% of GDP.
Therefore, the Deputy PM suggested reviewing all issues related to
logistics, including human resources, finance and infrastructure, noting
that the government must create a unified and transparent legal
framework for this sector.
In August 2016 a conference was also held on mobilising resources for
infrastructure and logistics development in the Mekong River Delta,
after which the World Bank pledged nearly US$3 million to this effort.
The World Bank also plans to connect the Mekong Delta’s logistics
development with Ho Chi Minh City to boost trade and reduce costs for
According to experts, if logistics costs fall by 1%, the region could save more than VND2 trillion (US$88 million) each year.
Deputy Prime Minister Hue expected that after the conference, the
awareness of the role of logistics would be enhanced and the region
could attract new domestic and foreign investment in this sector.