The establishment of Binh Duong Logistics Association, in addition to connecting enterprises within the same industry, will create a link between enterprises in the province and the Southern Key Economic Zone. In addition, this establishment also ensures the progress and reduces costs of transporting goods, creating favorable conditions for enterprises in the integration trend.
Meeting the demand of enterprises
Transport services play an important role in the global economy, as most types of business depend on transport services for access to raw materials and goods distribution. In Vietnam, the logistics industry has been around for 30 years, with a growth rate of 35-40% per year. At present, there are 1,500 enterprises operating and growing in this field. More recently, new FTAs with greater openness in the number and degree of trade liberalization as well as opportunities are a challenge to logistics industry in terms of price, technical, transportation time...
Binh Duong is a province with the most dynamic economy in Southern Key Economic Zone and of the whole country. Binh Duong is adjacent to Binh Phuoc, Long An, Dong Nai, Tay Ninh, and Ho Chi Minh City. A major orientation of Southern Key Economic Zone is infrastructure development, open deep sea ports and international ports in Thi Vai, Cai Mep; build the Long Thanh international airport... Therefore, Binh Duong will continue to have advantageous geographical position for developing a logistics center in the direction of opening and connecting with seaport system and national airport of the region.
Goods transport at IDC Corporation Tan Cang - Song Than.
Nguyen Truong Thi, Head of Investment and International Cooperation Office under Department of Industry and Trade, said that the province was implementing the plan for developing logistic services in the period of 2015-2020 with a vision towards 2025. Accordingly, the province focus on developing logistic infrastructure, especially building and improving road system; to dredge and exploit river system, build a railway to Cai Mep - Thi Vai port; also call for investments in inland ports and river ports to meet the demands of enterprises in and outside the province.
Although there are many advantages, except for some large enterprises, most businesses operating in fields of distribution, management and exploitation of goods in provincial logistic centers are small-sized; mainly provide single solutions with low added values. In addition, domestic manufacturers are not well aware of connection in optimizing their production and business activities.
Nguyen Thanh Son, General Director of Tan Cang - Song Than ICD Joint Stock Company - a logistic organization of international level, said the establishment of Binh Duong Logistics Association would be the foundation, stimulus to the comprehensive development of logistic system, including hardware, software infrastructure and human resources. Accordingly, each enterprise with different functions will maximize its functions but still ensure the interconnection (data connection, utilization of resources and common space fund...). As a result, the competition in connecting will increase the general efficiency of member companies.
To reduce the cost of goods
Currently, logistic cost account for a large proportion of product cost. According to estimates by Organization for Economic Co-operation and Development (OECD), developing countries in Africa and Asia pay international transportation cost which is higher by 40-70% than the average amount of developed countries. Therefore, lowering logistic cost is an urgent and vital matter to businesses when FTAs are taking effect.
In the Action Plan for Competitiveness Enhancement and Development of Logistic Services in Binh Duong Province till 2025, logistic center planning is considered as an important strategy that is a core element in the logistic system and plays an important role in the supply chain in the province.
At the meeting with the Science, Technology and Environment Committee of the National Assembly, Nguyen Van Hung, General Director of Becamex IDC Corporation, said the construction of Binh Duong Smart City was always associated with benefits of enterprises in the province; the province attached great importance to the development of multi-form transportation, logistic services and supporting works for goods transportation; make a connection between road, rail and waterway transport business to maximize the convenience for enterprises to reduce transportation costs, production costs. Binh Duong saved 300ha of land for building a standardized logistic center to link industrial zones in and outside the province, to provide seamless, fast, safe and competitive logistic services to meet the demands of Southern Key Economic Zone and surrounding areas.
In addition, the solution of combining road - waterway of Binh Duong province is appreciated by customers for its cost-effective with reasonable time. Dien Quang Hiep, President of Binh Duong Wood Processing Association, appreciated this logistic solution, this saved costs, created convenience for customers. "The establishment of Binh Duong Logistics Association that will provide customers with logistics services is very necessary. The connection of transportation networks with Cai Mep – a deep-water port, will create favorable conditions for enterprises, especially export-import enterprises to minimize the transport time and save product costs for enterprises; The most important thing is to strengthen the voice of enterprises to the authorities and build culture in transport and warehouse in a more organized manner”, said Mr. Hiep.
Reported by Tieu My – Translated by Ngoc Huynh
