Vietnam urged to reduce logistics costs to enhance competitiveness
The World Bank made public a report on improving Vietnam’s land transport and a strategy on sustainable development of inland waterway transport in the country at a workshop in Hanoi on March 28.
Hanoi (VNA) – The World Bank made public a report onimproving Vietnam’s land transport and a strategy on sustainable development ofinland waterway transport in the country at a workshop in Hanoi on March 28.
Yin Yin Lam, a senior transport expert of the WB, said landtransport is the backbone of the cargo transport system in Vietnam, citingfigures that land transport accounts for 77 percent of total cargo transport inthe country.
She noted that logistics costs in Vietnam made up nearly 21percent of the national GDP, which is higher than the ratio in most othercountries in the Association of Southeast Asian Nations (ASEAN). This affectsthe country’s competitiveness in export and increases costs for both producersand consumers, she said. While taking note of improvements in Vietnam’s logisticssector, as the country rose from the 64th place in 2016 to the 39th place in 2018 in the WB’s Logistics Performance Index, the expert saidlogistics costs remain high. In order to enhance the efficiency of land transport, YinYin Lam urged the country invest more in infrastructure to reduce traffic jams,promote the use of barge for container transport and further develop coastalshipping along the north-south route. The expert also urged transport firms to modernise theirfleets and standardise the procedures for driver training and issuance ofdriving licences. According to the WB representative, the WB has committed 3.8billion USD in total to Vietnam’s transport sector since 1993. The money wasspent on building new roads, or to maintaining and upgrading existing routes. Regarding the inland waterway system, the WB expert saidpoor infrastructure has hindered the system’s development, such as ports withoutdated facilities and poor connectivity with other modes of transport. The WB recommended that the transport sector call for investmentfrom the private sector in the system of ports, while the state budget shouldfocus on transport infrastructure.-VNA
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At the event (Photo: VNA) 
