Quang Ninh (VNA) –The sixth Vietnam Logistics Forum convened in the northern coastal province ofQuang Ninh on December 12, with businesses and authorities exchanging ideas andmeasures to increase investment in green logistics and connections amongeconomic regions.

At the forum, Deputy PrimeMinister Vuong Dinh Hue said cooperation for the development of green logisticsservices is a top priority, urging ministries, sectors, localities, businessassociations, and enterprises to work together for better results andcompetitiveness.

He noted that Vietnam hasimplemented various mechanisms and policies to encourage investors to take partin the building of logistics infrastructure and production chains.

The official recommended arange of measures regarding the growth of the sector, including applyingadvanced technologies, forming regional links, and facilitating trade amongASEAN member states.

As heard at the event,Vietnam has signed 14 free trade agreements to date, opening a larger windowfor partnerships and creating favourable conditions for foreign businesses toinvest in its logistics.

In 2018, the local logisticssector, now consisting of some 3,000 enterprises, is estimated to grow between12 and 14 percent. According to a report from the World Bank (WB) released onJuly 24, Vietnam’s position in the Logistics Performance Index (LPI) for 2018rose 25 levels compared to 2016, jumping to 39th place among 160 surveyedcountries.

Vietnamese firms mainlyprovide domestic logistics services such as transport service, airport, seaport,warehouse services, and cargo handling services. A few of them also provideinternational logistics services by acting as agents for foreign enterprises.

Nighty percent of the totalnumber of Vietnamese logistics companies have registered capital of under 10billion VND (430,000 USD), and only five percent have more than 20 billion VND(860,000 USD). Just over 360 firms hold memberships in the Vietnam LogisticsBusiness Association (VLA), reflecting a low level of connection among thegroup.

Currently, many localitieshave yet to consider developing logistics as a basic sector in support of othersectors. As a result, many locations hold potential, but lack funding forlogistics development. To address these shortcomings, relevant agencies areworking on administrative reforms that will cut the number of procedures andpromote e-governance practice.

VLA Vice President Dao TrongKhoa said that trade promotion and the expansion of international cooperation inlogistics have helped the sector maintain its growth momentum. –VNA