Ho Chi Minh City (HCMC) has approved a VND95.8 trillion (US$4.1 billion) project to develop its logistics sector over the next 10 years, aiming at the target of contributing 12% of the country's Gross Regional Domestic Product (GRDP) by 2030.
Current problems in the logistics sector:
Over 1,500 warehouses across HCMC are distributed unevenly and operated unprofessionally.
The Tan Cang and Cat Lai terminals are facing an overload capacity and traffic jams during rush hours.
The Tan Cang - Hiep Phuoc Port is not large enough to handle huge volumes of cargo.
Narrow river sections and the limited depth of rivers in HCMC have prevented many ports in the city from handling large vessels.
Key objectives of the project:
Increase enterprises’ revenue growth rate in logistics services at 15% in 2025 and 20% in 2030
Increase the contribution of the logistics sector to the city’s GRDP to 10% in 2025 and 12% in 2030
Reduce the ratio of national logistics costs over the national GDP by 10-15% by 2025
Key solutions of the project:
Ho Chi Minh City:
+ Build closed ring roads and a system of expressways to connect the city with other southern provinces.
+ Promote the transportation of goods by waterways and railways
Foster multimodal transport connections to logistics centers
Build inland container depots, warehouses and distribution centers
Seven areas are being developed into logistics centers: District 2, 9, Thu Duc, Binh Chanh, Nha Be, and Hoc Mon.
Vietnam is set to see very strong growth in trade over the coming years, which will support the ongoing development and expansion of its logistics. The logistics industry is one of the fastest growing industries in Vietnam, gradually gaining more government concerns. With its explosive growth, the sector is projected to attract more public attention and more investment in the foreseeable future. Interested to know more about logistics investment? Contact Broad Avenue Team right now and let us share with you the illuminating insights in investment.
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