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Logistics sector realizes goal, meets development demand

Update: 17-05-2023 | 14:20:19

Binh Duong industries and businesses show their determination to become a gathering place for goods and logistics services, and at the same time form a supply chain, promote distribution and export abroad, and create centers logistics of regional scale.

Cooperation, investment promotion

With the increasing traffic volume pouring into some arterial roads, the lack of connectivity and synchronization with other modes of transport, such as railways and inland waterways, has increased travel time between Binh Duong to seaports and international airports, increasing costs for businesses and investors, reducing the competitive advantage of the Southeast region in general and Binh Duong in particular. This has urgently set Binh Duong and enterprises a new development direction.

Binh Duong identifies sustainable development of the logistics system as the "backbone" as the foundation to attract foreign investment, strengthen regional linkages and international economic integration, and become an industrial center and smart city.  According to Phan Thi Khanh Duyen, Deputy Director of Provincial Department of Industry and Trade, this agency proposes some immediate and long-term solutions to remove "bottlenecks" to develop logistics services commensurate with the potential, stimulating import and export, especially reducing logistics costs, improving competitiveness for local exports.

Enterprises in Binh Duong strive to invest in modern logistics service infrastructure to meet the demand for import and export.

Ms. Phan Thi Khanh Duyen said that in the coming time, the industry and trade branch will intensify solutions to improve the quality of logistics services such as implementing a research project to develop strategies and policies for sustainable development of the logistics system in the province until 2030, vision for 2050. Accordingly, the project implements specific contents such as: analysis and forecast of logistics demand by key industries in the province and neighboring localities by 2030, study trends in logistics service development and important policy lessons learned to stimulate growth…

Kho Choon Keng, Chairman of the Chinese Chamber of Commerce and Industry in Singapore, representative of the Singapore Logistics Association said that Binh Duong and Singapore businesses have strengths to promote logistics cooperation. Singapore maintains its leading position in the Association of Southeast Asian Nations (ASEAN) and ranks second among countries and territories investing in Vietnam. The logistics efficiency index (as announced by the World Bank) of Singapore ranks 7th out of 160 countries. Singapore also owns the largest and most modern seaport system in the world.

Transformational business

Pham Van Xo, Chairman of Bing Duong Import and Export Association: “The reason why logistics is currently developing slowly is due to poor planning, leading to an incomplete transport connection system. There are even unsatisfactory transportation roads, leading to traffic jams, time jams, and high transportation costs. Many businesses and competent agencies have considered the solution to use the dense and interlaced existing waterway system of the region for freight transport, both reducing overload on roads and saving fuel costs.

Tran Duy Khiem, Director of Business Development U&I Logistics, said in its development strategy until 2025, U&I Logistics will become the connecting nucleus to form the largest logistics network in Vietnam, aims to provide a chain of package logistics services in the form of 4PL. In addition to the region's leading bonded warehouse system, U&I Logistics also owns 40 tractors, more than 100 trailers, and a network of transport partners with a scale of 1,000 TEUs/day. Besides, it is an agent for 16 major domestic and foreign airlines, more than 20 shipping lines with intra-Asia and trans-oceanic routes, serving tens of thousands of import and export containers annually. Logistics Joint Stock Company U&I is a business unit with a total storage area of 2,000,000m2, processing capacity of 2,000 P/O per day. This bonded warehouse system applies the most advanced dehumidification technology, always maintains a humidity below 63%, and guarantees 1,000 days without mold for goods in the warehouse.

Doan Hong Tuoi, Chairman of Tan Uyen City People's Committee, said that thanks to strengthening of transport infrastructure, it is convenient to transport goods and move between key areas. In addition to the external transport infrastructure system, Tan Uyen also has important internal roadways that will be expanded up to 28m, this is a route of special significance for the city to maximize the potential of logistics development. Tan Uyen City is the leader in bonded warehouses serving the national wood and furniture industry. Notably, the largest-scale bonded warehouse system in the wood and furniture industry in Southeast Asia at Nam Tan Uyen Industrial Park - is the first system present in Vietnam.

Nguyen Van Danh, Vice Chairman of Provincial People's Committee, also affirmed that the province determines to become a satellite center, where goods and logistics services are gathered. The province always creates favorable conditions for businesses to develop green transport methods, participate in sustainable supply chains, promote the potential of inland waterway transport routes, cross-border waterway transport. Strengthen support for logistics enterprises in improving the quality of human resources, applying technology, connecting with enterprises in the supply chain, trade promotion for logistics services... 

Reported by Tieu My - Translated by Ngoc Huynh

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