Vietnam ranks 48th in logistics services

Vietnam ranks 48th in logistics services. Currently, Vietnam ranks 48th out of 160 countries in logistics services and 3rd in ASEAN. Logistics costs account for 20.9% of Vietnam's total GDP, but Vietnamese businesses have yet to fully exploit this lucrative "logistics pie".

While Vietnam's supply chain logistics management has improved significantly, its level of integration remains considerably lower than Thailand, with Vietnam ranking 48th on the logistics map, Singapore 5th, and Thailand 35th.

In Vietnam, logistics costs accounted for 20.9% of GDP, compared to only 10% of GDP in Singapore.

According to World Bank data, Vietnam's GDP in 2015 was over $186 billion, meaning logistics costs amounted to approximately $41 billion. Meanwhile, logistics costs in the livestock sector accounted for a very high percentage, up to 30%.

According to Mr. Do Xuan Quang's assessment, in order to capitalize on this lucrative logistics market, Vietnam needs a more sophisticated logistics infrastructure and service provision, a stronger global transportation network, and especially value-added logistics solutions.

In addition, businesses should also seek partners such as the TILOG-LOGISTIX international exhibition… which can help businesses find more technologies and logistics services… and also serve as a basis for exploring the potential logistics market of the ASEAN + 6 bloc and increasing market share for Vietnamese logistics businesses.

Currently, Vietnam has approximately 1,300 businesses operating in the logistics service supply chain, but these are mainly small and medium-sized enterprises (SMEs). Over 10% are FDI enterprises, yet they account for 80% of the logistics service market share. Therefore, foreign-invested enterprises are currently benefiting greatly from exploiting logistics services.

According to Lan Anh (Young Intellectuals/CafeF)