Prime Minister: Logistics highly sunk the ‘ship’ of business

“High barrier logistics costs, business burden will sink the” ship “of Vietnam’s business,” Prime Minister Nguyen Xuan Phuc.
This morning (April 16), Prime Minister Nguyen Xuan Phuc chaired a conference on logistics, cost reduction solutions, effective connection of transport infrastructure system with the participation of the ministries, branches and localities. nationwide and numerous business associations, businesses producing goods, providing logistics services, transportation and transport support.

Speaking at the Conference, Prime Minister Nguyen Xuan Phuc, said logistics costs are still very high. “Transporting cars, there are up to 40-50% empty cars have no goods, how cost is not high”.

Logistics not only connects traffic but also many other issues such as warehousing, warehousing, handling of goods … High logistics costs are a barrier and burden for businesses and will engulf Vietnam’s business “ship”. Male.

“We make roads account for 90%, other types of transportation only account for 10%. Traffic infrastructure is not synchronized, connecting traffic with ports and stations is still difficult. You can’t just think of a railway, make a railway, think an airport makes an airport … without synchronizing, connecting transport systems with each other, ”the Prime Minister said.

According to the Prime Minister, ministries and localities should discuss legal institutions and policies to support the logistics industry. Do logistics need to care about warehousing, warehousing far, the high cost is right. It is necessary to have a strong enterprise development policy to invest in this field, logistics development needs enterprises to do but not to do by the Government.

“We are in charge of producing rice, fruit, equipment … but to service costs are too high, we cannot compete. The ministries and localities need to propose specific and focused solutions. develop comprehensively synchronously between localities but not separately, “the Prime Minister said.

Representatives of the Ministry of Transport In Vietnam as well as other countries in the world, transport costs always account for the highest proportion of total logistics costs, specifically this ratio in the following countries: Vietnam is about 59 %, USA about 63.6%, Thailand about 53.5%.

According to the preliminary assessment, the main cost structure of the transport modes of goods in the total transport cost includes: direct expenditure (Depreciation, workers’ wages, fuel, repairs, maintenance care) accounted for 60% to 80%, indirect costs accounted for 20-40%.

Regarding the composition of transport costs, according to data from transport enterprises, in road transport costs, gasoline accounts for 30-35%, tolls (BOT) on average account for 10-15% .

Transport market is not transparent, lack of information, high freight rates because the unit owner does not directly work with the goods owner but has to go through many intermediaries, brokers to make low exploitation efficiency, the system High number of empty runs.

According to the Ministry of Transport, for each different item transport costs account for a different proportion.

For example, for exported seafood products, transportation cost accounts for 51%, storage accounts for 20%, loading and unloading 23%, packing 5% and port charge 1%; exported garments transport cost was 61%, storage 9%, loading and unloading 19%, packing 9% and port 2%;

Export rice transport costs accounted for 58%, storage accounted for 10%, loading and unloading 24%, packaging 7% and port charges accounted for 1%; fruit trees transport cost accounted for 61%, storage 14%, loading and unloading 20%, packaging 5% and port charge is 1%.

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