A report by the World Bank (WB) showed that Vietnam's logistics costs accounted for 25 percent of GDP and were six per cent higher than Thailand, 12 percent more than Malaysia, 17 and 15 percent higher than Singapore and the US respectively. High logistics costs have reduced the competitiveness and development of businesses.
According to the General Department of Vietnam Customs, sharp fuel price hike has hit businesses already grappling with pandemic impact, leading to an increase in transportation costs. Container shipping cost has gone up to 20 percent.
The Vietnam Logistics Business Association has also proposed the HCMC’s authorities not to collect inland waterway transport fees while the policy of the Government is offering priority to waterway transport development to reduce pressure on road transport, said Head of the Department of Customs and Trade Facilitation under the General Department of Customs.
Speaking at the event, Jonathan Hanh Nguyen, Chairman of the Board of Directors of IPPG Group announced the establishment of IPP Air Cargo with the goal of reducing logistics costs and increasing the advantages of air freight of the country in the region.
The Ministry of Transport (MoT) has previously proposed the Prime Minister to allow the ministry to grant a licence in aviation cargo transportation for IPP Air Cargo Joint Stock Company. The air cargo transportation business will operate with five aircraft in the first year using Boeing 737, Boeing 777, Airbus A330 planes and similar aircraft. The number of airplanes will be ten in the fifth year.
The air transport network will connect production centers of Can Tho, Da Nang, Khanh Hoa, Central Highlands provinces of Lam Dong and Pleiku, Hai Phong, Quang Ninh and transshipment hubs in Hanoi, HCMC as well as linking with the Northeast Asia, Southeast Asia, South Asia and Europe.