Good news for the logistics industry in the land of "nine dragons"

Cargo ship at Cai Cui port, Can Tho city.

This is a good sign, promising positive movements in the logistics industry, which has long been a "bottleneck" in the West.

This shipping route is operated by the DP World and Vietnam National Shipping Lines consortium, transported by barge, taking advantage of shortening the distance from 367km to 200km, saving optimal costs for shippers and reducing pressure on roads, while opening up opportunities for international connections through Cai Mep port, creating a complete logistics service solution.

As the largest agricultural center in the country, the demand for transporting export goods in the Mekong Delta is about 18 million tons per year, but logistics costs are still "low" when they increase up to 30% of product cost (while in Thailand it is only over 12% and in the world it is about 14%).
Tan Phu Thanh Industrial Park seen from above.

According to experts, the Mekong Delta has a port system stretching along the Hau and Tien rivers; 5 road corridors connecting to the Southeast region and the whole country, which is a strong point in logistics development,... However, logistics services connecting transportation and seaports in the Mekong Delta are still lacking; the port system is scattered, small-scale, low-capacity, especially deep-water ports for export container ships.

This area also does not have a railway connection, so about 70% of export goods still have to be transferred to ports in the Ho Chi Minh City area. Some key ports are often overloaded, leading to increased service fees, warehouse storage and waiting time, causing businesses to incur 10-40% higher transportation costs...

In 2015, the Prime Minister approved the Plan for the development of the logistics center system nationwide until 2020, with a vision to 2030; which clearly stated: The central economic sub-region of the Mekong Delta will have a second-class logistics center with a minimum scale of 30 hectares by 2020 and more than 70 hectares by 2030. However, many years have passed, and there is still no real logistics center in the region, and the traffic infrastructure is poor, making businesses very hesitant when considering and deciding to invest.

In the spirit of Resolution No. 59-NQ/TW dated August 5, 2020 of the Politburo on building and developing Can Tho city to 2030, with a vision to 2045, Can Tho must become a core urban area, a regional center in many fields, including logistics.

In early 2022, the National Assembly passed a Resolution to pilot a number of specific mechanisms and policies for Can Tho, including the establishment of a Center for linking, producing, processing and consuming agricultural products, which is expected to create conditions for the region's agricultural products to flow smoothly through all stages from harvesting, processing, transportation, export, etc. By mid-2024, Can Tho had approved the outline and cost estimates for the planning project, and now the project has not made any further progress.

Therefore, the formation of the Mekong Express transport route is a good sign for the whole region. The Government is also focusing on investing in key transport projects connecting the region through the city, such as the My Thuan-Can Tho expressway and My Thuan 2 bridge; the route connecting National Highway 91 and the Long Xuyen city bypass ( An Giang ); the eastern North-South expressway, Can Tho-Ca Mau section;... When the projects are completed, they will attract the majority of import and export goods through the seaport in Can Tho, contributing to promoting cooperation and enhancing the competitiveness of the whole region.

In 2024, Vietnam's logistics industry will witness a strong recovery thanks to export growth, government support, investment in logistics technology and improvements in the global supply chain. According to the World Bank's rankings, Vietnam ranks 43rd out of 155 countries in logistics efficiency and is among the top 5 ASEAN countries (after Singapore, Malaysia, Thailand and the same rank as the Philippines).

With new developments, it is expected that logistics services in the land of "nine dragons" will have the motivation to gradually unlock agricultural resources, promoting economic sectors to develop to their full potential.