Reducing logistics costs to boost GDP an essential task: PM

Prime Minister Phạm Minh Chính speaks at the Vietnam Logistics Forum 2024 in the southern province of Bà Rịa–Vũng Tàu on Monday. — VNA/VNS Photo Dương Giang

BÀ RỊA–VŨNG TÀU - Logistics costs must account for only 15 per cent of GDP next year to achieve a double-digit GDP growth rate, Prime Minister Phạm Minh Chính said on Monday at the Vietnam Logistics Forum 2024.

The event was organised by the Ministry of Industry and Trade and the People's Committee of Bà Rịa-Vũng Tàu Province, discussing how the development of free trade zones will boost logistics growth.

Speaking at the plenary session, PM Chính highlighted a number of concrete goals and tasks to develop the logistics industry in Việt Nam.

To achieve a double-digit GDP growth rate next year, logistics costs must be reduced from the current rate of 18 per cent of GDP to 15 per cent, he said. The logistics sector's share of GDP must increase from 10 to 15 per cent and aim for 20 per cent.

Việt Nam’s logistics share in the global logistics market must rise from 0.4 to 0.5 per cent and strive for 0.6 per cent. The growth rate of the logistics industry, currently at 14-15 per cent, must be increased to 20 per cent.

PM Chính also stressed the need to raise awareness of the importance and role of logistics in the country's development – especially as Việt Nam is positioned at the heart of the Asia-Pacific region – to fully exploit its potential, competitive advantages and related opportunities.

“Institutional breakthroughs are needed to improve the legal framework so that the logistics sector can develop, which will contribute to the country’s double-digit growth and bring us into a new era of national development, prosperity and strength,” he said.

Modern logistics infrastructure must be developed, which should cost less and operate seamlessly to enhance product competitiveness. A focus on developing aviation, maritime and high-speed rail transport is required, the PM added.

“It is also crucial to build smart logistics management systems, develop high-quality logistics human resources and strengthen logistics diplomacy,” he said.

The PM expressed confidence that, with the right steps and strong foundations, the logistics industry will make great contributions to a new development phase of the country.

The southernmost province of Bà Rịa-Vũng Tàu will be one of the leading localities, chosen to be at the forefront of logistics and energy development in the country, he added.

According to PM Chính, the Government is focused on building and developing a free trade nation, with a strong connection between different modes of transportation such as maritime, inland waterways and expressways, to link the country with global free trade zones and international transportation systems.

He urged ministries, sectors, and localities to join in this goal, by actualising the national logistics services strategy and developing international free trade zones in the country.

Emphasising that the Government’s role is to create an enabling environment, the PM called for the establishment of the necessary institutions, strategies, plans and frameworks to mobilise resources, create a conducive development environment and design tools for monitoring and checking progress of the logistics industry.

He also required localities to take greater initiative, self-reliance, and responsibility in logistics development.

“Businesses should enhance their autonomy, actively propose and contribute to the development of the legal framework for logistics,” he said.