The Covid-19 pandemic has affirmed the role of logistics as an important service industry of the economy through many activities.
The workshop “Identifying opportunities and challenges for the development of the logistics industry in Ho Chi Minh City” organized by the Ho Chi Minh City Logistics Association (HLA) on the afternoon of November 30 in Ho Chi Minh City outlined the overall picture of this field for the future. enterprises (DN).
Need to invest, develop in the right direction
Ms. Dang Thi Minh Phuong, Chairwoman of HLA, said that the epidemic situation in the country, especially in Ho Chi Minh City, is showing positive signs, but there are still very complicated developments in the world due to new mutations, so the situation is still very complicated. The breakdown of supply chains and value chains still cannot be overcome in the near future, which may continue to greatly affect businesses in Vietnam. Also due to the impact of the Covid-19 epidemic, foreign direct investment (FDI) enterprises are looking for ways to reduce dependence on one market and tend to choose new investment locations that satisfy the following conditions: on a safe business environment, infrastructure and health services. To attract and retain FDI enterprises, logistics is considered as one of the important factors that need to be properly invested and developed. “Ho Chi Minh City is the economic locomotive of the South and the whole country, contributing over 22% of GDP and 27% of total national budget revenue. With the current situation, logistics enterprises need to clearly identify opportunities and challenges. in 2021 and the following years with different scenarios to jointly develop logistics to become the city’s spearhead economic sector” – enthusiastic Ms. Phuong.
According to Ho Chi Minh City Customs Department, domestic logistics enterprises contribute mostly to small businesses and contribute very little to import and export activities. Photo: TAN THANH
From the perspective of retailers, Mr. Nguyen Anh Duc, General Director of Ho Chi Minh City Union of Trade Cooperatives (Saigon Co.op), also considers the logistics industry to be important for retail businesses. The proportion of logistics costs accounts for 5% of the total revenue of modern retail enterprises. This number is extremely large compared to the gross profit of just over 10% of enterprises. “While in developed countries, the logistics system has reached level 5, in Vietnam, it is only at the starting level of 1, 2. “Vietnam is in the early stages of logistics digital transformation. Rapid change is required and change must be managed. Proposing planning and orientation for specialization in a more specialized direction, it is necessary to form logistics zones of the city, each area to focus on what kind of goods, so that logistics enterprises and retail enterprises … focus to cooperate. force to create strength” – Mr. Duc suggested.
In addition, according to him, there is a need for regional connectivity between Ho Chi Minh City and other provinces and cities; logistics planning must be similar to commercial and industrial planning; promote synchronously supporting industries, especially in the field of information technology to leverage technology for logistics. There should also be a synchronization of related infrastructure, considering logistics as a development part of the overall supply chain.
Promoting the logistics ecosystem
Statistics of Ho Chi Minh City Customs Department show that despite the pandemic, in the first 11 months of 2021, the total export turnover through the city’s customs will still reach 116 billion USD, up 16% over the same period in 2020. Facing that trend. Dinh Ngoc Thang, Director of the City’s Customs Department, said that logistics enterprises must take steps to seize development opportunities and form a logistics triangle cluster, seaports and airports. “Vietnam has many opportunities to develop the logistics industry, from signed trade agreements, policies for the logistics industry to the trend that North American and European countries are turning to Vietnam as an attractive geographical destination. If we become the world’s goods transshipment center, not only seaports but also logistics will be very developed, “- Mr. Thang forecast.
According to the Director of the City’s Customs Department, currently 80% of logistics enterprises in Ho Chi Minh City only have capital of 10 billion VND or more and only do simple things such as reinforcing, packing and transporting for businesses and are lacking in human resources. capital, tools, technology. Therefore, it is suggested that logistics businesses need to focus their resources, create and promote the global supply chain and logistics ecosystem. Along with that is promoting technology, new business models, how to apply 4.0 technology to digitize this service.
Ms. Dang Thi Minh Phuong suggested that in addition to the cooperation of businesses, in order for the logistics industry to develop, the Government and city leaders should consider making the logistics industry one of the priority industry groups for the stimulus package to develop. city economic development. “The logistics industry group accounts for 8.9% of the city’s gross domestic product (GRDP), but it is an industry that plays a supporting role in production, business, import and export activities, attracting FDI enterprises to invest. Therefore, supporting the industry stimulus package is not only meaningful to help logistics enterprises develop, but also supports other industries to reduce costs, overcome difficulties caused by the epidemic, improve competitiveness, and earn revenue. attract FDI capital and bring revenue to the city,” explained the HLA representative.
Information at the seminar, Mr. Bui Ta Hoang Vu, Director of Ho Chi Minh City Department of Industry and Trade, forecast that in the coming period, the demand of the logistics industry for the city’s economy will be huge. Therefore, the People’s Committee of Ho Chi Minh City has approved the project to develop the logistics industry into a spearhead service industry with the rate of contribution to the city’s GRDP by 2025 reaching 10% and 12% by 2030. To achieve the above goal, the project has proposed 6 major solutions. In which, the sixth solution is to perfect mechanisms and policies to develop the industry. The Ho Chi Minh City Logistics Association has just been established to gather businesses in the industry operating in Ho Chi Minh City, creating strength and sustainable links.
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