The goals of Vietnam logistics to 2025


Goals to 2025

Recently, Vietnam Prime minister approved action plan for advancing competitive index and develop Vietnam logistics services towards to 2025

Specifically, the contribution of logistics services to GDP reached 5 - 6%; logistics service growth rate reached 15 - 20%; the rate of outsourcing logistics services reaches 50 - 60%; logistics costs are reduced to 16 - 20% of GDP; the national logistics capacity index in the world ranked at least 50th or higher.

The proportion of logistics/GDP at 5 - 6% is considerably high when compared to the corresponding proportion of economic sectors in 2021. The proportion of logistics in GDP is only behind 4 industries.

The share of mining in GDP is 2,44%; Electricity production and distribution 3,95%; Water supply, waste management and treatment 0,90%; Construction 5,97%; Transportation and warehousing 4,46%; Accommodation and food services 1,73%; Information and communication 3,61%; Finance, banking and insurance 4,73%; Real estate 3,61%; Expertise, science - technology 2,26%.

Administration and support services 0,95%; Party, socio-political organizations, state management, national defense, compulsory social security 2,18%; Education and training 3,84%; Health care, social assistance 3,25%; Arts and entertainment 0,56%; Household employment, household production and self-consumption 0,13%; Agriculture, forestry - fishery 12,56%; Processing and manufacturing industry 24,62%; Commercial 9,34%; Product tax (except product subsidies) 8,76%.

Logistics growth rate at 15 – 20% that double, even triple the corresponding growth rate of the whole country according to the 2021-2025 plan (6,5-7%) and the logistics proportion in GDP of logistics remains at high rate.

The rate of outsourcing logistics services reaches 50 - 60%. One of the limitations of the service is the popularity of the concurrent, even for agencies and businesses. This goal is to increase professionalism and labor productivity.

Reducing logistics costs to 16-20% of GDP in order to increase the efficiency of logistics services and reduce prices of other sectors of the economy.

On December 17th, 2022, Vietnamese Government issued Resolution No. 163/NQ-CP on implementing tasks and solutions to improve competitiveness and develop logistics services in Vietnam.

In general, the goals set out have shown the important role of logistics services and the high determination of the State for this service.

Arising problems

The set goals must be realistically measured to evaluate the implementation, on that basis, there are solutions to direct the implementation of the goals. However, because logistics industry is connective service, closely associated with industries and fields from input to output of production, circulation in the country and export to foreign countries.

Therefore, it is difficult to separate calculating production criteria such as production value, intermediate costs, and added values. It is also very difficult to calculate the systematic indicators of the industry such as labor (labor productivity), investment capital, investment efficiency, enterprise (and related indicators such as labor, capital, financial resources, fixed assets and long-term investment, net revenue, total income, profit, profit margin), budget payment...


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