For the logistics industry in Nghe An to truly develop

Logistics is a specialized term of Greek origin, and its closest Vietnamese meaning is "hậu cần" (logistics/supply chain management). Essentially, logistics is a part of the supply chain encompassing all activities related to goods, including packaging, transportation, warehousing, and storage, until the goods are delivered to the final consumer.

Every manufacturing business must pay attention to and have a suitable logistics strategy. A good logistics strategy will help businesses save time, effort, and money effectively. Today, logistics is one of the strengths that helps to enhance the competitive advantage of businesses in particular and the economy in general.

Current situation of logistics operations in the province.
Nghe An province has a relatively developed transportation system, with 16 national highways passing through the area, totaling 1,768 km in length, and 32 provincial roads with a total length of 662.1 km under management; the North-South railway line passing through Nghe An province has a total length of 128 km and one medium-sized passenger station.

Vinh International Airport currently has only one runway, 2,400 meters long and 45 meters wide, capable of handling 1,000 passengers during peak hours, with a designed capacity of 2 million passengers per year. There are currently 7 domestic routes including Ho Chi Minh City, Hanoi, Da Nang, Buon Ma Thuot, Da Lat (Lam Dong), Cam Ranh (Khanh Hoa), Gia Lai, and an international route to Vientiane (Laos); the Bangkok (Thailand) route opened in June 2016. Domestic routes have basically met the travel needs of the people; however, international routes are still operating at a limited capacity due to relatively low passenger demand.

Graphics by Huu Quan

The inland waterway system has a total length of 907.6 km, of which 217.1 km are centrally managed, 45.1 km are locally managed by the Department of Transport, and the remaining 647.5 km are directly managed by the People's Committees of districts, cities, and towns.

Logistics services in Nghe An province are currently only developed to the extent of participating in goods transportation, mainly by transport service businesses. Shipping agents such as Nhat Viet Company, Toan Cau Logistics Company, Container Joint Stock Company, Viconship, Naconship, and road transport businesses such as Hop Manh Company Limited, Thanh Thanh Dat Company Limited, Toan Cau Logistics Company, etc., have also invested in vehicles and innovated management and operation methods to serve the transportation needs of businesses in the province.
According to assessments by infrastructure investors such as VSIP, Hemaraj, and businesses involved in import and export activities in the area, Nghe An's logistics services have not yet met the province's needs and development potential. This is a bottleneck and a less attractive point for investment due to the high cost of logistics services compared to other provinces and cities such as Hai Phong, Da Nang, and Ho Chi Minh City.

Currently, there are approximately 3,000 companies nationwide providing various types of logistics services, with 70% headquartered in Ho Chi Minh City and around 30 multinational logistics companies.

Containers lined up at Cua Lo port. Photo: Tran Chau

Some solutions for developing logistics in Nghe An.

For logistics to truly develop, Nghe An needs a well-structured, professional, and synchronized roadmap, including:

The first:The goal is to quickly establish and develop a complete logistics service market based on the following foundations: seaport infrastructure, warehousing systems, and an optimal transportation network connecting to key areas of the province and the North Central region.

Monday:The province must build a stable legal environment; state management of logistics must be transparent and effective; and a logistics business community within and outside the province must be developed with high-quality human resources, modern IT applications, and the ability to offer comprehensive, cost-effective solutions to meet the needs of import and export businesses in the province and the region.

Tuesday:There is an urgent need for preferential mechanisms and policies to support logistics service businesses in achieving stable performance and efficiency in the initial period, leading to sustainable development in the future; support the establishment of companies specializing in logistics services; and build and operate an effective transportation exchange platform to ensure the full utilization of vehicle carrying capacity...

Wednesday:It is necessary to establish a network of logistics centers located near major transportation hubs such as Vinh International Airport, Cua Lo International Seaport Cluster, Dong Hoi Seaport, Nghi Son... or to deploy them along major transportation routes connecting the city area to key economic zones of the province, to transship and supply goods to the distribution chain; develop logistics centers to serve goods between Nghe An and other provinces and cities, and import and export goods directly from Nghe An seaports, especially when expressways, high-speed railways, and the Trans-Asian Highway pass through Nghe An in the near future.

Thursday:The customs system should be modernized soon, including the strong development of the customs brokerage model by increasing the number of customs agents; establishing a preferential customs procedure regime for import and export shipments declared by customs agents, such as exemption from document and goods inspection for declarations signed and stamped by customs agents...