Ho Chi Minh City invests US$4 billion for development of logistics sector

Standing Vice Chairman of Ho Chi Minh City People’s Committee Le Thanh Liem approved the project of developing logistics sector in Ho Chi Minh City by 2025, a vision to 2030. 

(Illustrative photo:SGGP)

(Illustrative photo:SGGP)

The project will be implemented in in the period 2020-2030 with a total investment capital of VND95,800 billion (US$4 billion).

This is one of 45 projects under the strategic breakthrough programs of the Resolution of the 11th City Party Congress for the 2020-2025 term, carried out by the HCMC Department of Industry and Trade in coordination with the Vietnam Logistics Research and Development Institute.

With its strategic target, the growth rate of logistics service revenue from the HCMC enterprises is expected to reach 15 percent by 2025 and 20 percent by 2030, contributing to 10 percent and 12 percent of Gross regional domestic product (GRDP) in 2025 and 2030 respectively; thereby the country’s average logistics cost will fall to 10 percent to 15percent in 2025.

Additionally, the project will contribute to promoting construction progress of ring roads and expressways connecting Ho Chi Minh City with the Southern provinces, promoting freight transport by waterways and railways, enhancing multimodal transport connectivity to logistics hubs. 

By Hai Ha- Translated by Huyen Huong

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