As an entrepreneur and a military soldier, Nguyen Thanh Son, Director of Tan Cang Song Than ICD Joint Stock Company, contributed his opinions on the project "Reducing logistics costs, increasing the competitiveness of Binh Duong province". Mr. Son said: In order to do that, it is necessary to implement synchronously key solutions groups such as: Infrastructure, information technology, railway.
Loading and unloading containers at Binh Duong General Port.
- Could you please tell us why it is necessary to implement synchronously the above solutions?
- I spoke at the conference contributing ideas to the project "Reducing logistics costs, increasing the competitiveness of Binh Duong province" held by Department of Industry and Trade in collaboration with Binh Duong Logistics Association recently and received the agreement of many delegates. Because synchronous and modern infrastructure of Binh Duong is appreciated by outsiders, the economy, industrial production, and investment attraction of the province have increased and been stable for many years.
But in order for this speed to be maintained in a sustainable direction, it is also the responsibility of the next generation to appreciate and promote the values and achievements of our forefathers. In fact, the general planning, industrial and urban development planning of the province were developed but there is no specialized planning on logistics. Only some areas or routes will develop logistics.
In fact, as embarking on industrial development, we must implement logistics planning and development. Because logistics serves industrial development, reduces operating costs, increases competitive value. Due to historical conditions, although there is no plan yet, provincial leaders created a framework for future generations to promote and perfect. This is both a challenge and an advantage for the next generation.
- Could you explain more clearly about the challenges and advantages in this field?
- A huge challenge for the development of the province in general and the logistics business community in particular is that in our country, logistics costs account for a large proportion, up to nearly 30% of the total product cost. This has been concerned the Government and the Prime Minister. At the local level, provincial leaders have foreseen that, so they have continuously opened conferences and seminars to listen to opinions of experts, researchers, businesses...
The common challenge is that due to the lack of specialized logistics planning, the stages of service chain in the province are slow, leading to high costs. If not accelerating the solving process of this disadvantage, foreign enterprises would make use of their advantages and experience to push domestic enterprises out of the playing field.
Further, if the logistics planning is delayed, investors would recalculate their investment strategy in industrial zones in provincial northern parts, due to rising costs. Thus, investors would look to industrial zones in south Binh Duong, causing land prices here to increase, which means that total cost would increase. Therefore, provincial development strategy would be unsustainable.
The common advantage of the province is our brand name "Binh Duong”. The province is at the top positions in terms of attracting investment and developing economy. Binh Duong is considered by the business community to be at the forefront of administrative procedure reform, business support, and favorable conditions for import and export ... This is the outstanding advantage of Binh Duong.
- To realize specialized planning on logistics, it requires huge capital. And when capital is available, will opportunities still wait for domestic investors?
- I would like to affirm: If we are determined, nothing is impossible! Currently, the logistics planning is slow, but we need to see the advantage of going slowly is to inherit experience of the previous countries, as well as apply modern techniques and technologies.
With the current mechanism, policies, and prestige of Vietnam in the international arena, capital is no longer a big problem. The big problem here is determination, passion, and responsibility. When we have a good plan combined with a good strategy, international credit institutions such as the World Bank, Asian Development Bank ... are ready to lend us to the medium and long term.
- Sir, in recent years, logistics businesses in Binh Duong have developed quite well. Can you describe the development of this field in the near future if there is a planning solution?
- Compared with private enterprises specialized in logistics in developed countries, logistics enterprises in Vietnam in general and in Binh Duong in particular latecomers. However, we still have to develop because it is a career, a path that businesses must go. If we don't grow up by ourselves, we have to leave the game. That growth comes partly from the efficiency of the business, partly from the pooling of resources to make the market share also grow so that we do not have to trample on each other, or win each other at a percentage out of business number.
If it has plans and the overall management for the development of the province and the business community, logistics businesses will promote their capacity. Having a well planning map will help the province's logistics enterprises, although we are latecomers, to finish soon.
- Thank you Sir!
Reported by Duy Chi – Translated by Ngoc Huynh
