PM urges ‘green’ and digital transformation in logistics industry


Logistics industry should accelerate ‘green’ and digital transforming, cutting cost down to the world average level in achieving growth rate from 15 to 16 per cent, and contributing from 6 to 7 per cent to the country’s GDP next year.

 

Prime Minister Phạm Minh Chính and officials of the ministry of trade and industry visit an exhibition at the Việt Nam Logistics Forum in Đà Nẵng City. VNS Photo Công Thành 

ĐÀ NẴNG —The logistics industry should accelerate ‘green’ and digital transformation, cutting costs down to the world average level, Prime Minister Phạm Minh Chính urged logistics businesses and agencies at the Việt Nam Logistics Forum on November 29.

This is to achieve industry growth rate from 15 to 16 per cent, and contribute from 6 to 7 per cent to the country’s GDP next year.

He stressed that the industry had a successful year, boosting the country’s import-export turnover to US$900 billion, but it needs drastic solutions in clearing all barriers for steady growth and sustainable development in the coming years.

“Logistics plays a key role in the country’s economic growth. It earns an annual growth from 15 to 16 per cent and contribute from 4.5 to five per cent to the country’s GDP, but ‘giant’ businesses and key national logistics centres have yet to be built,” Chính said.

“A comprehensive mechanism is needed to help the industry operate smoothly and cut costs from the current 16 per cent to a world average of 11 or 12 per cent. If the industry maintains low service costs, it would save $45 billion for the country’s import-export revenue,” he said.

The PM also suggested logistics should complete building effective mechanisms and policies, removing obstructions for fast growth, while infrastructure facilities would need ‘green’ and ‘smart’ designs and development.

A container port in Đà Nẵng City. The central city has been speeding up the construction of the new deep-sea Liên Chiểu Port, a cargo terminal at the international airport and key logistics infrastructure projects for logistics growth. Photo courtesy of Đà Nẵng Port Company 

Chính said international co-operation, low-carbon growth driving and hi-quality human resources are key tasks that the logistics industry must accelerate in the next decades.

Minister of Trade and Industry Nguyễn Hồng Diên said the country’s logistics had yet exploited the potential of its landscapes and natural resources.

He said logistics had low competitiveness, poor regional links, while the ‘green’ and digitalisation process was still at the beginning steps and the shared database was limited.  

Đào Trọng Khoa, chairman of the Việt Nam Logistics Business Association (VLA), said the industry had been designed  to be a ‘Mega’ industry with revenue from $250 billion to $280 billion in 2035, and in the world top 30 with development of a series of ‘green’ logistics, free trade zones.

Trần Thanh Hải, deputy director general of the Agency of Import and Export under the Ministry of Industry and Trade, shared that Việt Nam had been boosting key infrastructure projects including the National 3,000km Expressway system; Long Thành International Airport and Gia Bình Airport; Lào Cai - Hải Phòng Railway route.

Hải said the Government and local authorities should gear up the construction of free trade zones, while the East-West Economic Corridor (EWEC) connecting Thailand, Laos, Myanmar and Việt Nam needed reviving.

The president of International Federation of Freight Forwarders Associations (FIATA), Thomas Sim, said the world was moving toward smart logistics at unprecedented speed with powerful forces reshaping logistics including smart ports and intelligent customs driving efficiency, green logistics, and digitally-enabled workforce.

“Việt Nam is entering a defining new era with the completion of the national action plan on enhancing logistics competitiveness, and the launch of the logistics development strategy in 2025-35 with vision to 2050,” he said.

Thomas Sim shared opportunities for Việt Nam becoming ASEAN’s smart multi-model hub as the country is positioned at the intersection of global manufacturing, maritime networks and regional corridors.

He said by integrating Liên Chiểu Port, Đà Nẵng International Airport, inland logistics centres, and cross-border infrastructure along EWEC, Việt Nam could anchor itself as ASEAN’s next generation multimodal powerhouse.

A plane stops at an international terminal of the Đà Nẵng International Airtport. A new cargo terminal has been built at the airport to meet growing demands of air logistics service. Photo courtesy of AHT

Việt Nam is advancing rapidly, but requires full adoption of electronic bills of lading, smart customs connectivity, a nationwide interoperable digital logistics ecosystem and alignment with international digital standards, according to Sim.

Việt Nam can champion ASEAN’s green transition by investing in green port initiatives, electric and alternative-fuel fleets, renewable-powered warehouses and emission reporting and compliance systems.

He said Việt Nam could develop a world-class logistics workforce, and FIATA would be ready to support Việt Nam in modern vocational training, multimodal transport skills, green logistics knowledge, digital trade competencies and leadership and management development.

Lê Thành Hưng, director Đà Nẵng City’s Priority Infrastructure Project Management Board, said three investors – local Hateco Group and APM Terminals from the Netherlands; the Việt Nam Maritime Corporation and Terminal Investment Limited Holding (Luxembourg); and Adani Ports and Special Economic Zone company from India and local T&T Group, have registered as tenders of container ports at Liên Chiểu Port.

Hưng said the container ports construction plan in Liên Chiểu deep-sea port would open its bid on December 24.

Đà Nẵng has full conditions for development into a global logistics hub with two international airports – Đà Nẵng and Chu Lai – deep-sea port of Liên Chiểu, Kỳ Hà and Chu Lai Ports, in linkage with deep-sea Dung Quất Port in neighbouring Quảng Ngãi Province, said vice chairman of the city’s people’s committee Lê Quang Nam. VNS

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