Pressure from Temu, Taobao: Vietnam needs to reduce logistics costs to 5% of GDP to be competitive
Currently, logistics costs in Vietnam account for about 18% of GDP, a figure considered quite high. Experts suggest that to effectively compete with goods from other markets, Vietnam needs to reduce this cost to 5%.
Within the framework of the 2nd Vietnam Logistics Conference, Mr. Tran Thanh Hai, Deputy Director of Agency of Foreign Trade (AFT), Ministry of Industry and Trade, pointed out the rapid increase of goods from electronic platforms such as Temu, Shein, and Taobao in Vietnam. These products not only have extremely fast delivery speeds but also have attractive prices, even very low.
To mitigate policy risks, there needs to be a long-term vision of 50 years, not just 10 or 15 years. At the same time, it is necessary to promote public-private cooperation in logistics. Because with the logistics sector, if the system does not operate properly, other parts of the economy will be severely affected because logistics is like the "bloodstream" of the economy.
According to Dr. Yap Kwong Weng, CEO of Vietnam SuperPort, Vietnam is considered a connecting center in the region. "Vietnam's logistics costs currently account for about 18% of GDP, a very high level. To be able to compete better with other markets, we need to reduce this cost to 5%," said Mr. Weng.
Source: Huyền Trang
(https://doanhnhantrevietnam.vn/suc-ep-tu-temu-taobao-viet-nam-can-giam-chi-phi-logistics-xuong-con-5-gdp-de-canh-tranh-d24551.html)