Addressing the Vietnam Logistics Forum 2024, held in southern Ba Ria-Vung Tau province on December 2, Prime Minister Pham Minh Chinh outlined three objectives and seven key tasks to promote the growth of Vietnam’s logistics sector.

According to the PM. logistics costs are expected to reduce from 18% to 15% by 2025.

The Government leader was quoted by the Vietnam News Agency as pointing to the need to increase the sector's contribution to the country's GDP from 10% to 15% and even 20%, while raising Vietnam’s share of global logistics from 0.4% to 0.6%, and lifting the sector's growth rate from 14-15% to 20%.

Along with raising public awareness of the position, role, and importance of logistics in the country’s development process, it is necessary to create a breakthrough in institutional development, with efforts to refine frameworks to ensure that the logistics sector develops in line with the three key objectives, contributing to achieving double-digit growth and ushering the country into a new era — the era of nation’s rise, where the country becomes prosperous and strong, the leader said.

He called for the development of modern, seamless logistics infrastructure that reduces input costs and enhances the competitiveness of products. This includes promoting the growth of air, maritime, and high-speed rail transport. Additionally, a focus must be placed on smart governance, high-quality human resources, and strengthening logistics diplomacy, while modernizing domestic logistics operations, building and developing a free trade nation with close connections among various transport methods - air, sea, rail, inland waterway, and highways, linking the world’s free trade zones and the international transport network.

The PM requested relevant ministries, sectors, and localities to urgently focus on building a free trade nation, finalizing Vietnam’s logistics development strategy and establishing international free trade zones.

He highlighted the Government's role in building institutions, strategies, and plans to create a conducive environment for the development of logistics.

He stressed the need for localities to increase activeness and self-reliance in boosting logistics development, and urged businesses to become more self-reliant and make more contributions to the development of policies that balance the interests of the State, the people, and enterprises, emphasizing the motto of harmonizing benefits and sharing risks.

The leader also called on foreign organizations and businesses to collaborate and invest in Vietnam, following the principles of mutual understanding, shared vision, and joint actions, mutual benefits and common development.

Vietnam is seen by experts as having significant opportunities to promote the growth of the logistics sector thanks to expanding infrastructure, including road systems, airports, seaports, warehouses, and logistics centers. The development is rapidly meeting the market's diverse demands.

In recent years, Vietnam’s logistics sector has grown at about 14-16% annually, with a scale of around $40-42 billion a year. According to the World Bank's rankings, Vietnam currently ranks 43^rd out of 155 countries in logistics efficiency and is among the top five in the Association of Southeast Asian Nations (ASEAN).

In the first nine months of 2024, nearly 6,500 logistics companies were established with total registered capital of VND36.55 trillion ($1.43 billion) and nearly 28,900 employees. This marked a 13.5% increase in the number of companies and an 18.3% rise in the number of employees, despite a decrease of 11.3% in capital compared to the same period in 2023.

The Vietnam Logistics Forum, organized annually by the Ministry of Industry and Trade since 2013, aims to promote the application of advanced technologies in supply chain operations, enhance competitiveness in Ba Ria – Vung Tau and the Southeastern region, and foster cooperation among businesses, investors, and management agencies to develop the logistics sector in Vietnam, the news agency remarked.

This year, the forum sends out a message of Vietnam’s interest in developing free trade zones as a breakthrough solution for logistics growth, helping position Vietnam as a logistics powerhouse, and contributing to the nation's industrialization and modernization, it added.