HCM CITY – The HCM City Department of Industry and Trade has proposed a project to develop logistics from now through 2025 under which seven logistic centres will be set up and the city’s infrastructure overhauled.
It will speed up the construction of roads to other provinces, which will help fix the problem of national highways being overloaded as expressway projects remain tardy.
The project also aims to improve marine and rail logistics.
Around VNĐ95.8 trillion (US$4.2 billion) will be needed between 2020 and 2030 for infrastructure, information technology and workforce training.
The project will also focus on improving logistics businesses’ competitiveness.
The seven logistic centres will be set up in Districts 9, Thủ Đức, Bình Chánh, Nhà Bè, and Củ Chi.
The project targets annual growth in the city’s logistic revenues of 15 per cent until 2025 and 20 per cent over the subsequent five years. Logistics costs are expected to fall by up to 15 per cent by 2025.
The logistics sector has enormous growth potential, with around 4,000 companies, domestic and foreign, a high growth rate and a dynamic workforce.
However, according to the Việt Nam Logistics Association, the city’s 1,500-odd warehouses are of different size and developed without any co-ordination.
Their use is not efficient either.
HCM City’s ports lack connectivity, and their relatively narrow entrances mean they can only occasionally berth large ships.
The Cát Lái New Port cluster on the Đồng Nai River is overloaded and highly congested during peak hours, while the Hiệp Phước New Port cluster on the Soài Rạp River is small and scattered.
Tân Sơn Nhất Airport is also limited in terms of traffic, and frequently suffers from congestion. – VNS
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