Efforts to reduce logistics costs

Update: 30-09-2019 | 15:44:01

Binh Duong is a province with a fast socio-economic development rate, attracting large investment of the whole country. The province has been making great efforts to improve the capacity and reduce logistics service costs, thereby contributing to socio-economic development.

Transportation and loading at ICD Tan Cang Song Than Logistics Center.

Many efforts

According to businesses, the current logistics costs in general, in Binh Duong in particular are still high. Nguyen Thanh Son, Director of Tan Cang Song Than ICD Joint Stock Company, said the limitation of logistics services in the province was reflected in four areas of infrastructure, technology, human resources and finance. Specifically, the total area of logistics centers, IDCs (inland port) and warehouses on the total area of industrial parks in the area is low (about 3%). Besides, the river port system on Saigon and Dong Nai rivers has not been exploited. Along with that, in recent years, the province has focused on developing road infrastructure but still has not met the development need...

Nguyen Hoang Vu, Chairman of Binh Duong Logistics Association, said that in recent time, enterprises in the association had tried to link and come up with solutions to reduce costs and timely propose appropriate policies to help logistics enterprises to promote internal resources, contribute to improve the competitiveness of the province and the national competitiveness under the Government's guideline.

In early September, Binh Duong Logistics Association held a meeting to collect comments for the project "Reducing logistics costs for businesses in Binh Duong". The project aims at three objectives: To plan a logistics development strategy based on regional integration principles; constructing river and railway logistics infrastructure connecting industrial zones inside and outside the province; improving logistics services in the direction of specialization to reduce logistics costs, increase competitiveness.

At the meeting, the association's leader introduced the project through evaluating the current status of logistics service industry in the province and some neighboring localities. On the basis of aggregating and analyzing information from secondary and primary data to clarify the status of logistics infrastructure in Binh Duong, including the status of ports and ICDs, freight stations; the situation of warehouses and distribution centers; commercial-service infrastructure; connected transport infrastructure; transport services... The project developed solutions to reduce logistics costs for businesses in the province, including: Developing infrastructure, supporting logistics enterprises, applying information technology, developing human resources , competing and regional cooperation, proposing complete policies and mechanisms.

Dr. Duong Nhu Hung, Head of Industrial Management Faculty of Ho Chi Minh City University of Technology, said that when proposing the implementation of logistics cost reduction measures, it was necessary to overall consider logistics costs and impacts on these costs. If Binh Duong can reduce logistics costs, it will also be a factor to raise the province's investment attraction. However, this is a large challenge requiring Binh Duong to invest in infrastructure, expand the scale and improve the quality of logistics. An assessment of the true situation of logistics industry today, to what extent, thereby proposing solutions to build the development direction foe this industry, lowering the cost of logistics services for businesses, is a very important issue.

To develop strengths of river logistics

According to representatives of Becamex IDC Corporation, logistics infrastructure and logistics centers that Becamex has been researching and implementing, including the development of river and railway logistics projects and other utilities, are the direction of the corporation. If river ports in the area of Thai Hoa ward (Tan Uyen town) and An Tay commune (Ben Cat town) are constructed, according to initial calculations, logistics costs will be reduced by nearly half.

According to the assessment, road traffic infrastructure in Binh Duong is well planned and invested, both in a continuous task in the internal traffic and connected smoothly with the regional and national transportation system. This is a favorable factor to connect with river ports in the province and the region.

Nguyen Quang Sang, Phuong Nam Trading and Service Company, said if the province built a river logistics center, it would link logistics centers with goods gathering centers in the dry port planning. In particular, logistics centers are prioritized in dry port areas near industrial parks and large cargo centers to reduce storage costs.

Ho Van Binh, Deputy Director of Department of Industry and Trade, said the project "Reducing logistics costs for businesses in Binh Duong" needed to have specific plans in accordance with the local reality and the capacity of logistics enterprises in the area. To implement the project effectively, in the immediate future, it is necessary to have practical solutions to reduce costs for businesses. Currently, in order to reduce logistics costs, on the business side, it is necessary to use a full-package logistics service; take the initiative in managing the supply of raw materials, production and transportation; control delivery time to master the market and increase competitiveness of businesses.

Reported by Tieu My – Translated by Ngoc Huynh

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Efforts to reduce logistics costs

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