Targeting to be a regional logistic hub by 2025, Vietnam has formed an action plan for improving the competitiveness and development of logistic services under Decision No. 200/QD-TTg dated 14 February 2017.

The action plan provides fundamental objectives and detailed tasks to achieve the target.

Objectives of the logistics sectors by 2025:

  • Logistics sector/GDP: 8-10%
  • Service growth rate: 15-20%
  • Outsourcing logistics service ratio: 50-60%
  • Logistics costs/GDP: 16-20%
  • Ranking of the logistics performance index (LPI): 50

Focused areas:

  1. Attracting investment in logistics infrastructure development, constructing regional & international logistics service centers.
  2. Forming the leading logistics service enterprises, capable of competing on the domestic and international markets.
  3. develop advanced technologies and professional personnel
  4. Improving the government management mechanism: policies, regulation and the administrative structure.

Action plan with specific tasks:

       i.           To improve legal system for logistics

–   Improve legal basis for logistics by supplementing and modifying existing regulations to comprehensively cover logistics services and integrate international commitments into national law.

–   Review and amend policies on taxes, fees and prices of logistics-related services.

–   Reform customs procedures, reduce/simplify inspection procedures, standardize documents and implement WTO Trade Facilitation Agreement.

–   Other changes to facilitate logistics activities.

     ii.           To improve the logistics infrastructure

–       Review plans to ensure the synchronization of infrastructure, transport services, and objectives of logistics sector.

–       Review and amend provincial plans/production structure related to logistics services and infrastructure.

–       Complete policies and speed up the attraction of investments in logistics infrastructure.

–       Others to completing the logistics infrastructure.

   iii.           To improve the capacity of enterprises and service quality

  • Encourage and instruct enterprises in applying advanced supply chain management models.
  • Encourage some industrial parks/export processing zones to form logistics-based industrial zone model.
  • Prioritize state funding to research, transfer and application of advanced technologies for logistics services.
  • Others to improve the capacity of enterprises and service quality.

   iv.           To develop logistics services market

  • Improve trade promotion in logistics sector.
  • Enhance the development of outsourcing logistics services.
  • Promote international cooperation in logistics.
  • Others to develop logistic service market.

     v.           Others

  • Train & raise awareness and quality of human resources.
  • Strengthen the state management apparatus in logistics.
  • Formulate statistical indicators and collect logistics statistical figures.
  • Others to support the development of logistics sector.

With the action plan, the Government shall actively take the role in support and creation of convenient environment for improving the competitiveness and development of Vietnam’s logistics service sector by 2025.