Ho Chi Minh City leads in logistics competitiveness

Ho Chi Minh City's economic engine is a locality with the leading technology application platform, infrastructure, services and legal logic in the country.
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This is the first result published in the provincial Logistics Competitiveness Index (LCI) report, jointly published by the Logistics Service Business Association (VLA) and the Vietnam Logistics Research & Development Institute (VLI). Dream Incubator (DI) implemented in 2022.

Top 5 in terms of logistics competitiveness index include: Ho Chi Minh City, Hai Phong, Binh Duong, Ba Ria - Vung Tau, Hanoi. Among them, Ba Ria - Vung Tau and Hanoi have equal indexes. Following are Dong Nai, Da Nang, Bac Ninh, Long An, Can Tho...

5 localities on the expected list have not been evaluated because they did not receive complete survey results from logistics service businesses (LSPs): Lang Son, Thai Nguyen, Nghe An, Thanh Hoa and Thai Binh. 

Transporting goods at Cat Lai port (HCM City)

This survey was conducted for the first time in Vietnam in more than a year from August 11, 2022 to November this year; provides a logistics picture of all provinces and cities based on 5 main pillars including: economy, logistics services, legal and policy framework, infrastructure and logistics human resources.

26 provinces and cities were selected based on their prominence in terms of gross regional product (GRDP), volume of goods circulated and number of logistics enterprises.

The report was conducted with approximately 2,000 samples and hundreds of hours of in-depth interviews, dozens of meetings to update progress as well as periodic consultations with state management agencies, organizations and businesses. and research units.

Assessing at the LCI announcement on the afternoon of November 17 in Ho Chi Minh City, Mr. Tran Thanh Hai - Deputy Director of the Import-Export Department of the Ministry of Industry and Trade said that Vietnam's logistics industry is gradually improving and developing. Provinces and cities across the country are making efforts to improve quality and apply technology to the industry.

To attract foreign investment into Vietnam, Mr. Hai said that localities need to improve their competitiveness in logistics in new conditions to make Vietnam an important hub in the world logistics system.

According to Mr. Hai, the world trend is moving the supply chain out of China and the new destination is Vietnam. Many big brands from the US and Europe have been moving to Vietnam, creating a diverse investment picture. Therefore, Vietnam will have many opportunities to rotate goods in the coming time.

"The Ministry of Industry and Trade is building a strategy to develop Vietnam's logistics services until 2035, with a vision to 2045; the goal is to make Vietnam an important logistics service center in the region and the world," said Mr. Hai added.

Currently, the country has about 4,000 businesses in the logistics field, 70% of which are concentrated in Ho Chi Minh City and neighboring provinces. Vietnamese logistics businesses are mainly small-scale, 90% of companies have capital of less than 10 billion VND; 1% has a capital of over 100 billion VND.