According to World Bank statistics, logistics costs of Vietnam accounts for 18% of annual GDP, nearly double that of developed economies and higher than the global average of 14%. Therefore, lowering logistics costs is a big concern for Vietnam in general and Hai Phong in particular.
Hai Phong city converges all 5 types of transportation: sea, road, waterway, railway and airway, with developed inter-regional connections. However, the activities of Hai Phong logistics businesses are currently mainly focused on transportation with just a few simple services, hence the competitiveness is weak. Road transport has made up of up to 70% of the transport shares, which is unreasonable, increasing logistics service costs and pushing up prices.
According to Mr. Dao Trong Khoa - Vice President, Vietnam Logistics Business Association: In the composition of the cost of logistics services, transportation cost accounts for the highest. This fact raises the need to optimize transportation methods. Accordingly, developing water transport is a good solution with a dense river network of about 300km long connecting inter-regions, minimizing emissions that cause environmental pollution but also has advantages in transportation costs.
Discussing about inland waterway, Mr. Le Manh Cuong, Director of Lokaport Port Exploitation and Logistics Jsc. States that currently, inland waterway transport only reaches 4.5% of the transport market shares. The city has a policy of reducing seaport infrastructure fees by 50% for goods transported by waterway to encourage and create conditions for this type of transport to develop. However, it is necessary to plan separate wharves for water transport vehicles and build convenient inland waterway transport routes to ensure the stable operation of the supply chain.