SOME VND96 TRILLION NEEDED FOR LOGISTICS DEVELOPMENT IN NEXT 10 YEARS

In the next 10 years, VND95.8 trillion will be needed for the development of the logistics sector in HCMC to fulfill the target of contributing 12% to the gross regional domestic product (GRDP) in 2030, according to a plan for logistics development in HCMC until 2025 with a vision toward 2030, which has been passed.

As the logistics sector plays a key role in transporting local and imported goods, the city will improve logistics infrastructure, including building ring roads and expressways and connecting them with many provinces in the southern region.

Besides, the city will boost the transportation of goods by sea and rail and foster multimodal transport to logistics centers, cargo storage centers and inland container depots.

The plan also presented seven locations for the construction of logistics centers, including Long Binh in District 9, Cat Lai in districts 2 and 9, Linh Trung in Thu Duc District, the Hi-Tech Park in District 9, Tan Kien in Binh Chanh District and Cu Chi and Hiep Phuoc in Nha Be District.

Given the various solutions, HCMC targets the growth rate of revenue from logistics services at enterprises at 15% in 2025 and at 20% in 2030. The contribution of the logistics sector to the city’s GRDP is expected to reach 10% in 2025 and 12% in 2030.

Even though HCMC currently has over 1,500 warehouses, these facilities are working ineffectively and unprofessionally. Meanwhile, as for waterway transport, the Tan Cang and Cat Lai terminals are facing an overload and traffic jams during rush hour, while the Tan Cang-Hiep Phuoc Port is not large enough to handle huge volumes of cargo.

Narrow river sections and the limited depth of rivers in HCMC have prevented many ports in the city from handling large vessels, VnExpress news site reported.

Source: The Saigon Times