What to see from the goal of logistics to 2025?

Goals to 2025

Decision No. 221/QD-TTg dated February 22, 2021, of the Prime Minister (amending and supplementing Decision No. 200/QD-TTg dated February 14, 2017) approving the Action Plan to improve competitiveness. compete and develop logistics services in Vietnam by 2025. According to this decision, by 2025, the contribution of logistics services to GDP will reach 5-6%; the logistics service growth rate reached 15-20%; the rate of outsourcing logistics services reaches 50-60%; logistics costs are reduced by 16-20%; ranked by the national logistics capacity index in the world reached 50th and above.

The proportion of logistics/GDP at 5-6% is relatively high when compared to the corresponding proportions of economic sectors in 2021. The proportion of logistics in GDP is only behind 4 industries, specifically: the share in GDP of mining is 2.44%; electricity production and distribution 3.95%; water supply, waste management and treatment 0.90%; construction 5.97%; transportation, warehousing 4.46%; accommodation and food services 1.73%; information and communication 3.61%; expertise, science - technology 2.26%; administrative and support services 0.95%; Party, socio-political organizations, state management, national defense and security, compulsory social security 2.18%; education and training 3.84%; health care, social assistance 3.25%; art, entertainment 0.56%; household employment, household production and self-consumption 0.13%; agriculture, forestry - fishery 12.56%; processing and manufacturing industry 24.62%; commercial 9.34%; product tax (except product subsidies) 8.76%.

Logistics growth reached 15-20%. This is a very high growth rate, double, or triple the corresponding growth rate of the whole country according to the 2021-2025 plan (6.5-7%) and the proportion in GDP of logistics still ranks high.

The rate of outsourcing logistics services reaches 50-60%. One of the limitations of the service is that the duality is still high, even for state agencies and businesses. This goal is to increase professionalism and increase labor productivity.

Reduce logistics costs to the equivalent of 16-20% of GDP. This is a huge reduction, in order to increase the efficiency of logistics services themselves and reduce prices of other sectors of the economy.

On December 17, 2022, the Government issued Resolution No. 163/NQ-CP on implementing tasks and solutions to improve competitiveness and develop logistics services in Vietnam.

In general, the goals set out have shown the important role of logistics services and the high determination of the State for this service.

Some problems arise

The set goals must be realistically measured to evaluate the implementation, on that basis, there are solutions to direct the implementation of the goals. However, logistics services are connected services, closely associated with industries and fields from input to output of production, circulation in the country, and export to foreign countries.

Therefore, it is difficult to separate when calculating production criteria such as production value, intermediate costs, and added value. It is also very difficult to calculate the systematic indicators of the industry such as labor (labor productivity), investment capital, investment efficiency, and enterprise (and related indicators such as labor, capital, and financial resources). fixed assets and long-term investment, net revenue, total income, profit, profit margin), budget payment...

Regarding specific targets, compared to the current level of industries, the target set out for 2025 is very high. Therefore, without very high determination and drastic solutions, it is very difficult to implement.