Cross-border logistics: A boost for the Central region's economy

At the 6th Regional Logistics Forum held on August 22 in Hue City, experts affirmed that cross-border logistics is a growth driver for the Central region. Many breakthrough solutions were proposed to remove bottlenecks and unlock the strategic potential of the entire region.

The event, co-chaired by the Vietnam Chamber of Commerce and Industry (VCCI) and the Hue City People’s Committee, attracted more than 500 guests. VCCI pledged to continue supporting investment promotion and providing policy advice to improve the business environment and reduce logistics costs in the region.

Great potential but not worthy

Speaking at the forum, Mr. Nguyen Sinh Nhat Tan, Deputy Minister of Industry and Trade , said that the North Central and Central Coast regions have a special geographical location, connecting the two growth poles of the North and the South and being the most convenient gateway to the sea for Southern Laos and Northeastern Thailand. This location has made the region a "convergence point" of goods.

Mr. Nguyen Sinh Nhat Tan, Deputy Minister of Industry and Trade, spoke at the forum. (Photo: VGP)

However, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan also pointed out major limitations. He said: "The logistics infrastructure in the Central region still lacks synchronization; the connection between seaports - railways - roads - airlines, although being invested in strongly, has not yet been effective, leading to high transportation costs."

Besides, there are very few modern logistics centers, specific policy mechanisms are not attractive enough, and high-quality human resources are still limited.

According to Mr. Hoang Quang Phong, Vice President of VCCI, logistics is increasingly becoming the "trump card" to enhance national competitiveness. He emphasized that logistics development must follow new trends such as digital transformation, green transformation and circular economy .

Breakthrough solutions

To "awaken" the potential, experts have proposed many strategic solutions. Mr. Nguyen Duy Minh, Vice President of the Vietnam Logistics Services Association (VLA), proposed a "three-legged stool" strategy. The first is to build Free Trade Zones (FTZs) adjacent to seaports, airports and key border gates. The second is to develop international transit ports. The third is to develop international transport connections including container fleets, airlines and cross-border land transport.

More than 500 guests attended the “Regional Logistics Forum VI: Cross-border Logistics - Growth momentum in the North Central and Central Coast regions”. (Photo: Business Forum Magazine)

Regarding the Thua Thien Hue market, Mr. Do Thai Duong, Project Director of LEC Group, proposed 3 solutions. Specifically, building a special incentive mechanism on tax and land rent; building a traffic route connecting Chan May Economic Zone with La Son - Tuy Loan Expressway; and reopening the A Dot international border gate, building a route from Laos to A Dot.

On the local side, Mr. Nguyen Van Phuong, Chairman of the Hue City People's Committee, said that logistics is identified as a pillar of development, aiming to build a Green Logistics Center of the region. He affirmed: "With its location as the gateway to the Central region, Hue has a synchronous transport infrastructure network... Chan May Port will be developed into a transit port and an international logistics system".

From a financial perspective, Mr. Hoang Van Phuc, Deputy General Director of BIDV - SuMi TRUST Leasing Company Limited (BSL), said that financial sponsorship is an important solution to innovate means and technology.

He also pointed out that the size of the financial leasing market in Vietnam by the end of 2024 was only about VND47,000 billion, accounting for less than 0.4% of GDP, showing that the potential of this field is still very large.

Source: https://thoidai.com.vn/logistics-xuyen-bien-gioi-suc-bat-cho-kinh-te-mien-trung-215743.html