Opportunity to develop offered by logistics advantages

Binh Duong has made good use of advantages of favorable geographical location, invested in synchronous transport infrastructure, rapid development of industry and commerce - service, this has created a strong driving force for the province's logistics industry to grow rapidly. Exploiting advantages, many logistics infrastructures have been invested by the province, creating favorable conditions for logistics enterprises, contributing to attracting investment and improving provincial competitiveness.

Mining effort

Binh Duong is located in the southern key economic region, industrial - urban infrastructure, transport infrastructure, and logistics infrastructure receive attention and investment for synchronous and comprehensive development. In particular, the system of logistics centers, inland waterway ports, warehouses... are planned, constructed and developed reasonably, capable of connecting with seaports, river ports, railway stations and international airports in the region.

As one of the leading localities in the country in attracting domestic and foreign investment capital, Binh Duong has created favorable conditions for Binh Duong's logistics businesses to develop quite quickly in both quantity and quality. The system of warehouses and transport vehicles is regularly newly invested, expanded and upgraded, basically meeting the requirements of goods circulation in the province.

Warburg Pincus Corporation (USA) chose Binh Duong to invest and develop projects with great potential for future development, especially a project of 75 hectares in Binh Duong New City, including high-tech factories, extended warehouses, cross-border e-commerce warehouses - split warehouses, bonded warehouses... The development of warehousing and logistics of the joint venture between Warburg Pincus Group and Becamex IDC has effectively contributed to production and business activities in industrial parks of the province.

Strengthening activities to attract investment and develop logistics infrastructure is one of the top priority tasks of the province. In photo: Goods transportation at Tan Cang Song Than ICD Joint Stock Company.

Charles R.Kaye, Global General Manager of Warburg Pincus Group, said that the project has developed successfully so far. Currently with 1.5 million m2 of floor has been built; this is the foundation for Warburg Pincus Group and Becamex IDC to continue to cooperate in new projects on cross-border e-commerce platform and some other projects.

According to foreign investors, as relocating investment, we must take account of how much the new location will change the supply chain. It will be difficult for businesses to accept a new location that is not convenient for production material transportation. The logistics system for transporting manufactured goods requires cost optimization on the export route.

At the groundbreaking ceremony of their sixth factory in November 2022 in Binh Duong, Preben Elnef, Vice President and project leader of LEGO Group in Vietnam, also shared that besides the attractive market, LEGO chose Binh Duong because of its logistics advantages, which is also a strength for the group to consume products in the Southeast Asian market and export to other regions.

Eliminate the bottleneck

Up to now, Binh Duong has formed a complete road traffic system and put into use many arterial roads, including national and provincial road traffic infrastructure, such as: My Phuoc - Tan Van, main segments of Ring Road 3, Ring 4, the route connects with Tay Ninh province, DT741 connects Binh Duong province with Binh Phuoc province, National Highway 13 , Bach Dang 2 bridge… These projects will create a highly connected transport system with provinces and cities in the southern key economic region, ensuring continuity of goods inside and outside the province.

Besides the achieved results, logistics industry of the province has some limitations that have not been cleared for development, the number of units capable of providing high-quality, value-added logistics services, such as: there are not many logistics, e-logistics service chains, and service centers to support industrial and urban development have not yet been established. Many businesses can only provide 1PL, 2PL services, the number of large centers providing 3PL, 4PL and 5PL services is limited. Additionally, the problem of traffic infrastructure, traffic jams has not been effectively handled.

According to the draft plan to develop logistics services in Binh Duong province until 2025, the province determines the goal of developing logistics system by identifying logistics service is one of important and spearhead economic sectors in the service sector’s development strategy and the socio-economic development strategy of Binh Duong province; is a driving factor promoting development, especially import and export, distribution of goods and services to meet production and consumption needs.

Nguyen Thanh Toan, Director of Provincial Department of Industry and Trade, said that in order to optimally exploit Binh Duong's advantages in the development of logistics services, Department of Industry and Trade proposed specific groups of solutions: to drastically implement and closely follow the planning of Binh Duong province in 2021-2030 period, with a vision for 2050 to be consistent with the national master plan, in line with the development of the logistics industry; to enhance investment attraction, especially to attract enterprises capable of logistics activities to research and invest; invest in infrastructure, improve enterprise capacity and quality of logistics services; train and develop logistics human resources… 

Specific goals in the logistics development plan until 2025, orientation towards 2030, vision for 2045 of the province: Period 2022-2025: 100% of major centers will reach levels above 5PL (ELogistics - Logistics on e-commerce platform). Form a system of ports on Dong Nai river, Saigon river, and Thi Tinh river connecting with Ring Road 3, Ring 4. By 2030, Binh Duong will become a satellite center of the Southeast region, a place to gather goods and concentrate on logistics services for goods production activities in industrial zones and clusters; form a supply chain of goods from manufacturers to domestic and foreign consumption markets...

Reported by Ngoc Thanh - Translated by Ngoc Huynh