Hải Phòng aims to become an international logistics centre

January 26, 2023 - 10:35
This northern city is developing a service sector development project for 2030, with a long-term vision to 2045, including logistics services.


Đình Vũ Port system in Hải Phòng. — VNA/VNS Photo

HÀ NỘI — Hải Phòng aims to become a regional and international logistics centre due to its many advantages as a transportation hub for all five types of traffic, including sea, road, air, railway, and inland waterways.

This objective is highlighted in the northern city's service sector development project for 2030, with a long-term vision to 2045, including logistics services.

The city is also studying to develop a project to establish a free trade zone, considered a breakthrough solution to exploit the best advantages in the logistics sector of Hải Phòng.

The Politburo's Resolution 45 on building and development of Hải Phòng City by 2030, with a vision to 2045 also states that Hải Phòng must be built into a national logistics service centre by 2025. 

"By 2030, it will become a modern international logistics service centre with sea, air, highway and high-speed rail".

According to former Secretary of the Hải Phòng City Party Committee Trần Lưu Quang who has been appointed to the Government's Deputy Prime Minister, to develop logistics services, Hải Phòng will promote administrative reform and digital transformation in the field of seaports and logistics. 

It will strengthen investment attraction and trade promotion, and form logistics service chains with high added value and regional linkages.

According to the Ministry of Industry and Trade, Hải Phòng has great advantages in infrastructure of seaports, fishing ports, warehouses for industrial production, and import and export activities of goods. 

At the same time, some of 14 industrial parks (IPs) are built on the basis of logistics services to increase connectivity among enterprises at the supply chains.

In the past, Hải Phòng has focused on investing and upgrading seaport infrastructure in line with the development trend of regional and international shipping. Its transport system is improved and more synchronous.

Many projects on developing logistics centres in industrial zones and economic zones (EZs) have also received licences of investment, such as a logistics centre invested by KM Cargo Services Hải Phòng Co, Ltd with a capital of VNĐ34.8 billion; a logistics project with total investment capital of US$35 million developed by ECPVN Hải Phòng 1; JD Property Logistics Park Hải Phòng 1 project in the non-tariff zone and Nam Đình Vũ Industrial Park with a total investment of $32 million. Those have created new opportunities for the logistics service industry in Hải Phòng.

Quang said that in 2022, traditional and advantageous service sectors such as seaport and logistics services have made strong developments. They have actively contributed to the socio-economic development of Hải Phòng and the northern key economic region. 

Hải Phòng's growth rate of logistics services is about 20-23 per cent per year and this sector has accounted for 13-15 per cent of the city's GRDP.

The volume of goods through the ports in the city has grown strongly, accounting for a large market share in the seaport system of the country. 

Pointing to the service's shortcomings, Đan Đức Hiệp, former deputy chairman of Hải Phòng City People's Committee, said that Hải Phòng has about 1,000 enterprises registering to provide logistics services, but they have limited competitiveness and a low market share.

The majority of cargo volume via Hải Phòng seaport continues to be transported by road, putting great pressure on the transport system.

Meanwhile, transporting goods by rail and inland waterway is still weak. 

There is also the problem of labour shortage, especially high-quality labour. Logistics and production enterprises of Hải Phòng are always in a serious shortage, especially logistics sales staff, logistics information technology staff, and staff coordinating transportation and warehouse operations.

At the same time, most employees of enterprises lack logistics knowledge and skills. This will be a big challenge for the development of the service in the future.

According to forecasts, Hải Phòng needs about 369,000 logistics workers by 2025, including 252,600 trained workers. By 2030, this number will increase to 460,000 employees, including 368,000 trained workers.

Human resources for the logistics sector in Việt Nam in general and Hải Phòng in particular will still lack in both quality and quantity for many years in the future. The human resource at present meets only about 40-45 per cent of the industry's needs.

Therefore, Hải Phòng needs to have a strategy on sustainable development of human resources for the logistics sector, Hiệp said. — VNS