HANOI, June 13 (Xinhua) — Vietnam’s export-driven economic system is being blunted by world headwinds, on high of that, the associated fee to ship containers has remained excessive, hampering producers in gaining a aggressive edge, the Ministry of Planning and Investment’s on-line newspaper reported on Tuesday.
Vietnam’s estimated logistics prices to gross home product (GDP) is about 16.8 p.c, larger than the worldwide common of 10.7 p.c, in line with the Vietnam Logistics Business Association.
Logistics prices account for as much as 20-25 p.c of the worth of completed agriculture merchandise and this de facto levy has negatively affected the competitiveness of Vietnamese export corporations which have little selection aside from absorbing the associated fee and passing it on to their prospects, stated Nguyen Dinh Tung, vice chairman of the Vietnam Fruit and Vegetable Association.
Wood and furnishings exporters have recorded prices of transportation, warehousing, customs providers and different administrative costs 10-15 p.c larger than these incurred by their rivals, stated Dang Quoc Hung, chairman of Ho Chi Minh City-based furnishings producer Hawa Corporation.
Port congestion and delays in container returns have additionally made delivery prices improve by a 3rd, stated Ngo Tuong Vy, chief government of a fruit export firm.
High logistics prices result in larger product costs and decrease aggressive benefits for Vietnamese items. “Vietnam’s products would be less attractive to global consumers and international partners, especially amid ongoing headwinds,” she stated.
Logistics providers in Vietnam largely depend on street transportation which accounts for practically 80 p.c of the freight quantity transported within the Southeast Asian nation, the Vietnam News newspaper reported.
When in contrast with their counterparts in China, Japan and Thailand, Vietnamese logistics corporations have been at value drawback resulting from inefficient enterprise follow, stated trade specialists.
According to the World Bank, 68 p.c of native corporations has truck fleets with the aptitude of transporting a cargo load underneath 5 tons.
More environment friendly transport and logistics enable producers, transport carriers, logistics service suppliers, and commerce regulators to scale back the price of doing enterprise. And such competitiveness enhancements can higher place Vietnam to learn from world demand, the World Bank stated.
With technological developments as a game-changer within the time of speedy adjustments, logistics is amongst eight industries for which the Vietnamese authorities has vowed to extend help in digital transformation efforts, stated Phan Van Chinh, head of the Agency for Foreign Trade underneath the Ministry of Industry and Trade.
The logistics sector is aimed toward contributing 5-10 p.c of Vietnam’s annual GDP by 2030, stated the transport ministry.