Việt Nam will focus on enhancing the competitiveness of the logistics sector and removing bottlenecks in the sector in order to promote trade and investment with India, an official has said.
Cát Lái Port in HCM City. Việt Nam will focus on enhancing the competitiveness of the logistics sector. — VNA/VNS Photo
HCM CITY — Việt Nam will focus on enhancing the competitiveness of the logistics sector and removing bottlenecks in the sector in order to promote trade and investment with India, an official has said.
Speaking at a meeting on Thursday in HCM City, Phạm Thị Ngọc Thủy, director of the Office of the Private Economic Development Research Committee, said there was immense potential for improvement in bilateral trade between Việt Nam and India, especially in the logistics sector.
Việt Nam’s heavy investment in infrastructure development has created significant opportunities for logistics enterprises, she said.
In addition to logistics, other key investment sectors include hi-tech agriculture, food processing, renewable energy, the supporting industry, healthcare, education, infrastructure, and tourism, among others.
Bilateral trade between the two countries has grown steadily from US$200 million in 2000 to $15.05 billion in 2022, up 13.6 per cent year-on-year, she said.
India is the eighth largest trading partner of Việt Nam, while Việt Nam is India’s fourth largest trading partner in ASEAN, she added.
Việt Nam has become an attractive destination for Indian investors thanks to its stable political environment, appealing policies, affordable labour costs, and potential market access due to free trade agreements that the country has concluded, she said.
Đặng Hồng Nhung, director of the Import-Export Department under the Ministry of Industry and Trade, said the logistics sector in Việt Nam had great potential for growth, given the heavy investments in infrastructure systems, including building and expanding expressways, airports, seaports, and logistics centres.
The Government last year issued a resolution to enhance the competitiveness of the logistics sector, making it a high-added value services sector.
Under the resolution, Việt Nam aims to promote the logistics industry development with production, import and export activities.
It’s necessary to establish sustainable supply chains, improve the quality of human resources and promote digital transformation and technology application in the logistics industry.
The resolution also aimed to promote the development of green logistics, which has become a trend and an important indicator for the sustainable development of the logistics industry.
The Government has instructed the Ministry of Finance to continue reviewing the policies of taxes and fees while customs procedures would be further simplified to create favourable conditions for logistics services providers.
She also noted that 2023 would be a challenging year as the global economy is in a recession coupled with high inflationary risk, leading to a decrease in trade activities as well as logistics activities.
She recommended companies prepare for uncertainties in the context of the ongoing Russia – Ukraine conflict, natural disasters, diseases, or unexpected incidents.
Bùi Trung Thướng, Vietnamese trade counsellor in India, said India has a long coastline that is very convenient for shipping while Việt Nam has a direct shipping route to India.
Việt Nam and India should cooperate in building and expanding expressways, airports, seaports, and logistics centres, he added.
Experts also recommended Việt Nam develop a strategy for green logistics to 2030, in which, the digital transformation should be sped up, infrastructure quality increased and conditions for multimodal transport improved.
Policies should also be raised to encourage small- and medium-sized enterprises to switch to green logistics and use renewable energy, they said.
Việt Nam and India established diplomatic relations in 1972, which was lifted to a comprehensive strategic partnership in 2016.