Logistics costs remain high in Vietnam

Logistics spending accounts for 20 percent of total costs in Vietnam, said deputy Minister of Transport Nguyen Van The at the second Vietnam Logistics Forum in Ho Chi Minh City on Thursday.

The number swings from 9 to 10 percent in Singapore and averages from 9 to 13 percent in the world.

High logistics costs have weakened the competitiveness of Vietnamese goods in the world market and even in domestic market. The logistics costs include customs fees, freight rates and costs for administrative procedures.

Experts at the forum proposed Vietnam to have systematic measures from infrastructure development to administrative reform, aiming to improve the competitiveness of Vietnamese goods.

Mr. Pham Minh Duc, a senior expert form World Bank, said that Vietnam and other developing counties should cut their logistics costs to a half of that in Singapore. This will help increase global trade activities by 14.5 percent, equivalent to US$1,600 billion.

By Nguyen Khoa – Translated by Hai Mien

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