At the “Shifting Supply Chains: Prospects and Challenges” forum. (Photo: VNA) At the event, themed “ShiftingSupply Chains: Prospects and Challenges”, Nguyen Cong Luan fromthe municipal Department of Industry and Trade, describedoverloaded and degraded roads – the main means of transportation in Vietnam –as a challenge for the country’s logistics activities.
Only 20% of roads in Vietnam meet the requirements of the logistics sector,while more than 50% of them are in bad conditions, posing high risk for the transportationof goods, he said.
Although HCM City is a leading logistics hub in the country and the region,with 2,700 enterprises providing professional logistics services, accountingfor 54% of the country’s total number of firms, there is no large-scalelogistics centre with advanced technologies built in the city.
Statistics from the HCM City University of Transport, the city is now home toonly 1,500 warehouses with 30 standard cold storage ones, failing to meet the marketdemand.
Luan said it is necessary to branch out transport andlogistics infrastructure in the southern economic hub through calling forinvestment in six logistics centres in Thu Duc city and Binh Chanh, Cu Chi andNha Be districts.
He also suggested that national- and international-level logistics systems shouldbe developed in tandem with sea ports, airports, international border gates,key economic corridors and inter-regional trade routes in HCM City and BinhDuong, Dong Nai, Ba Ria – Vung Tau and Tay Ninh provinces.
Vietnam has been ranked in the top 10 places in the 2023 Agility Emerging Markets Logistics Index compiled by Agility. (Photo: VNA) According to the World Bank, Vietnam ranks 43rd in the logistics performanceindex, and is in top five in ASEAN in 2023.
Giang Vu, Co-Chair of the American Chamber of Commerce in Vietnam’sManufacturing Committee, highlighted free-trade agreements have creatednumerous opportunities for Vietnam to engage in the global supply chains.
Improvement in workingconditions and environmental protection, as well as promotion of the circulareconomy are among the bold steps that Vietnam has made to create itscompetitive edge, she added.
However, Vietnam is not the unique destination for the supply chain shifts, shesaid, elaborating that the country is facing formidable challenges in logisticsfacilities which need further improvements in the future.
Meanwhile, Dinh Thi Quynh Van, Chairwoman of the PwC Vietnam, pointed out thathigh logistics costs and poor linkages between means of transportation havemade Vietnam in the choppy waters when joining the global value chain./.
VNA
