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High logistics costs erode competitiveness of Vietnam businesses

HCMC – High logistics costs have made the Vietnamese economy less competitive.

According to Le Quang Trung, vice chairman of the Vietnam Logistics Business Association, import-export businesses are grappling with increasingly high logistics and transport costs.

The cargo shipping time has increased 1.5-2 times against early 2020. It currently takes 45-60 days to ship cargo to the U.S., up from the previous 30-35 days.

Trung noted that shipping costs, with fuels accounting for 60-65%, make up a majority of the logistics cost. Therefore, the fuel price hike will lead to a strong increase in logistics costs in Vietnam.

Shipping costs have shown no signs of falling due to rising warehousing and property costs.

To reduce logistics costs, many representatives proposed the traffic system be improved to ensure synchronization and continuity, among which railways and waterways should play a key role. In addition, transport and transit points should be connected to facilitate the operation of logistics companies in Hanoi and HCMC.

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