Vietnam commits to creating favorable condition to develop logistics

Deputy Prime Minister Vuong Dinh Hue emphasized completion of legal system and creation of a good business environment to help boost the country’s logistics sector to grow sustainably.

A representative from the Ministry of Agriculture and Rural Deveopment talks about logistics' role in agricultural chain (Photo: SGGP)

A representative from the Ministry of Agriculture and Rural Deveopment talks about logistics' role in agricultural chain (Photo: SGGP)

He made the statement at the Vietnam Logistics Forum 2019 under the theme “Logistics add more value to agricultural products” in central Da Nang city yesterday held by the Ministry of Industry and Trade, People’s Committee in Da Nang , the World Bank and the Vietnam Economic Times
Vietnamese government determines to develop logistics section strongly and sustainably along with build an ecological system for logistics growth including legal system, infrastructure, socio-economy, human resource, but focus on removing difficulties to help enterprises.
Moreover, he said the country’s sector ought to speed up research and strategic forecasting is needed to catch up with the industrial revolution 4.0 and analyze impact on the country’s sector to send the government good policies and mechanisms to take advantages of opportunities and cope with new challenges.
The forum discussed strategic planning and reality of Vietnam’s logistics sector in the connection with the local and international economy as well as in the digitalization trend.
Logistics connects the East-West economic corridor” and “Sharing economy in logistics” were also included as part of the forum.
The agriculture sector offers employment to 70 percent of the country’s population contributing to 15 percent to the country’s gross domestic product and 30 percent of the country’s total export value. In 2018, agriculture, forestry, seafood exports reached VND 789 trillion (US$ 33.9 billion), increasing by 3.86 percent compared to the same period of 2017.
Though agricultural logistics plays a significant role in the country’s economic growth, its development has not been commensurate with its potential as the sector is lacking warehouse and preliminary processing of agricultural products. Inexperienced enterprises in exports should be mentioned too.
Minister of Agriculture and Rural Development Nguyen Xuan Cuong said every year, Vietnam transports around 40 tons of agricultural products to 185 nations but most of produce are unprocessed ones bringing low value for the country.
Accordingly, in next years, Vietnam will focus on creating chains, hence, logistics plays more significant role. He stressed that in addition to the government favorable policies, enterprises should invest more to create a close agricultural  chain to raise value of produce.
Speaking at the forum, Mr. Hue acknowledged loose connection between ministries, agencies and local administration, little investment in logistics, high logistic fees and limited application of technology have resulted in the sector’s poor development.
Deputy Prime Minister Vuong Dinh Hue, Minister of Industry and Trade Tran Tuan Anh, Minister of Agriculture and Rural Development Nguyen Xuan Cuong, Country Director of the World Bank in Vietnam Ousmane Dione, and leaders from local and regional logistic associations and enterprises attended the forum.

By NGUYEN CUONG - Translated by ANH QUAN

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