Hanoi (VNA) - Fostering connectivity betweenlogistics providers and between them and companies in other sectors will createmore opportunities for mutual support, thus creating large enterprises to leadthe market, according to Deputy Minister of Industry and Trade Tran Quoc Khanh.

Last year, when global trade was severely impacted byCOVID-19, logistics activities in many countries came to a standstill, while logisticsin service of e-commerce became quickly overloaded due to a surge in onlineorders, Khanh told a conference in Hanoi on April 20 discussing measures todevelop the logistics market.

Without careful preparations, logistics providers aswell as production and business enterprises will face major difficulties inadapting to the new circumstances, he believes.

He noted that the global logistics market was given aboost by the recovery in international trade flows in the second half of 2020.Moreover, post-pandemic trade facilitation and policies from governments toimprove the economic climate were helpful in expanding the market.

According to a report from ResearchAndMarket.com, the sizeof the global logistics market was estimated at 3.31 trillion USD in 2021, up17.6 percent compared to 2000 and showing that the sector still boasts substantialdevelopment potential.

According to the Vietnam Logistics BusinessAssociation (VLA), 95 percent of active logistics companies in Vietnam areVietnamese, but mostly of small or medium scale and with poor links.

Many participants to the conference pointed outthat their modest scale is one of the barriers facing domestic logistics firms incompeting in the domestic market, not to mention the region and the world.

Meanwhile, Nguyen Quoc Phuong, Deputy General Directorof the Airports Corporation of Vietnam (ACV), said that international transportaccounts for 80 percent of total transport in Vietnam. The market share in internationaltransport held by domestic airlines is currently just 12 percent, with theremainder belonging to 75 foreign airlines.

Insiders said the Ministry of Industry and Trade shouldcomplete policies and legal regulations on logistics services.

At the same time, it is necessary to completelogistics infrastructure by continuing to review planning and investing insupporting businesses to build large warehouses in different localities.

Authorised agencies should also upgrade and connect transportinfrastructure, cut fees, and allow the optimisation of resources through there-distribution, sharing, and re-using of redundant capacity for the promotionof the logistics sector, they added./.