Hanoi (VNA) – The domestic logisticssector has made big strides over the past time, significantly contributing tonational economic growth and generating jobs for labourers.

According to the World Bank's ranking, Vietnamcurrently ranks 64th out of the 160 countries in terms of logistics development and4th in the Association of Southeast Asian Nations (ASEAN) after Singapore,Malaysia, and Thailand.

The country was also among the top 10 places in the2023 Agility Emerging Markets Logistics Index compiled by Agility, one of theworld’s top freight forwarding and contract logistics providers.

Among the Southeast Asian countries, Vietnam was fourth,behind Malaysia, Indonesia, and Thailand.

Agility ranked 50 economies based on three factorswhich make them attractive to logistics providers, freight forwarders, shippinglines, air cargo carriers, and distributors. The factors include domesticlogistics opportunities, international logistics opportunities, digitalreadiness, and business fundamentals.

However, Vietnam’s logistics costs are equal to16.8%-17% of the national GDP, much higher than the global average of only10.6%, leading to the weakening competition of Vietnamese goods globally, Chairmanof the Vietnam Logistics Association (VLA) Le Duy Hiep said, pointing tolimitations in logistics infrastructure, seaport planning, and connectivitybetween means of transport, among others.

The WB also noted that Vietnam's logistics industrystill shows many shortcomings in terms of capacity as well as the digitaltransformation pace of most logistics businesses.

Although the Government, ministries and agencieshave pushed ahead with the implementation of a project on building the nationallogistics development strategy by 2035 with a vision towards 2045, in whichdigital transformation has been integrated, it still requires greater effortsby relevant sides to boost the digitalisation in the sector.

Besides, the domestic international railway system hasyet to be fully tapped to serve trade between Vietnam and China and other ASEANmember countries despite its substantial potential.

Given that, Hiep suggested more incentives to helplogistics firms raise their competitiveness in the region and globally./.