Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Inflatedlogistics costs were hampering the competitiveness of Vietnamese goods,according to Chairman of the Vietnam Textile and Apparel Association(VITAS) Vu Duc Giang.
Vietnam's logistics costs were 6 percenthigher than Thailand, 7 percent higher than China, and 12 percent more than oMalaysia, Giang said.
This had reduced thecompetitiveness of domestic textile products compared to other countries in theregion, even though Vietnam was considered a low labour cost country, he toldthe Kinh Te and Do Thi (Economyand Urban Affairs) newspaper.
"High logistics costs notonly affect the competitiveness of goods, but also pose an obstacle forbusinesses when entering new markets,” Giang noted.
A report by the World Bank(WB) showed that logistics costs in Vietnam made up for 20 percent of thecountry’s GDP, while other countries ranged from 9 to 14 percent.
Economists said that if theGovernment wanted to improve the quality of logistics services it needed tohave a clear roadmap.
Deputy Director of HatecoLogistics JSC Nguyen Van Duc recommended the Ministry of Industry and Trade,provinces and cities should pay attention to human resource, infrastructure andpolicy institutions.
They also need to promote linkswith foreign investors in logistics to provide businesses with managementsoftware and processes, Duc added.
Deputy General Secretary of the VietnamLogistics Business Association (VLA) Nguyen Tuong said the State shouldprioritise developing infrastructure and logistics service centres, whileoffering preferential income and equipment tax rates.
Policies were needed tocut business conditions, simplify inspection procedures and mobilisesocial resources to invest in logistics, especially regional andinternational logistics centres, Tuong said.
In addition, to reduceunnecessary costs for export firms, management agencies needed to completea logistics development mechanism. Enterprises must cut costs and improvecompetitiveness, he said.
Localities and authorities mustfocus on transport infrastructure to connect logistics centres in theprocess of implementing the Law on Planning, Tuong added./.
Vietnam's logistics costs were 6 percenthigher than Thailand, 7 percent higher than China, and 12 percent more than oMalaysia, Giang said.
This had reduced thecompetitiveness of domestic textile products compared to other countries in theregion, even though Vietnam was considered a low labour cost country, he toldthe Kinh Te and Do Thi (Economyand Urban Affairs) newspaper.
"High logistics costs notonly affect the competitiveness of goods, but also pose an obstacle forbusinesses when entering new markets,” Giang noted.
A report by the World Bank(WB) showed that logistics costs in Vietnam made up for 20 percent of thecountry’s GDP, while other countries ranged from 9 to 14 percent.
Economists said that if theGovernment wanted to improve the quality of logistics services it needed tohave a clear roadmap.
Deputy Director of HatecoLogistics JSC Nguyen Van Duc recommended the Ministry of Industry and Trade,provinces and cities should pay attention to human resource, infrastructure andpolicy institutions.
They also need to promote linkswith foreign investors in logistics to provide businesses with managementsoftware and processes, Duc added.
Deputy General Secretary of the VietnamLogistics Business Association (VLA) Nguyen Tuong said the State shouldprioritise developing infrastructure and logistics service centres, whileoffering preferential income and equipment tax rates.
Policies were needed tocut business conditions, simplify inspection procedures and mobilisesocial resources to invest in logistics, especially regional andinternational logistics centres, Tuong said.
In addition, to reduceunnecessary costs for export firms, management agencies needed to completea logistics development mechanism. Enterprises must cut costs and improvecompetitiveness, he said.
Localities and authorities mustfocus on transport infrastructure to connect logistics centres in theprocess of implementing the Law on Planning, Tuong added./.
VNA
