Vietnam Climbs 25 Places in World Bank’s Logistics Index – Survey Indicator
Survey indicators
Among the six indicators in the survey, Vietnam’s rank in Tracking and tracing and Logistics competence rose the highest, jumping by 41 and 29 spots respectively. Both, customs and infrastructure rose by 23 levels, while timeliness jumped 16 places. The lowest growth was seen in International shipments, which rose only by one spot.
Currently, Vietnamese firms are mostly involved in domestic services such as transportation (air and sea), warehousing, and cargo handling. Firms providing international logistics services usually do so on the behalf of foreign entities.
Going forward, the government not only needs to focus on simplifying administrative reforms but increasing investments in logistics infrastructure and warehouses to strengthen regional connectivity. This will not only reduce logistics costs but also increase Vietnam’s trade competitiveness. Transporation costs alone accounts for more than half of the logistics cost in Vietnam. In 2017, logistics costs reached US$46 billion, nearly 21 percent of the GDP.
This text is part of a more complete analysis available for free.
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