The report was recently submitted to the prime minister.
The country is still in a ‘logistics trade deficit’ position, with its ports primarily focused on cargo handling, which covers only about 20 per cent of the functions of an international maritime hub by global standards, Board IV reported.
Most value-added services like shipbuilding, repairs, finance, maritime insurance and digital technology services are outside the port area and rely heavily on foreign businesses.
Despite these, the country has several advantages, which include its strategic geographical location, its position among the top 17 largest trading nations; 17 signed free trade agreements (FTAs) covering over 60 markets and 90 per cent of global gross domestic product (GDP); and the presence of the Cai Mep - Thi Vai port complex, capable of handling some of the world’s largest vessels.
These offer scope for the country to become a new maritime-logistics and production hub in Asia, according to the report.
Inland waterway transport has not been exploited to its full potential, leading to inefficiencies in goods transportation, said the report.
Public investment in this sector only accounted for about 2 per cent of total investment in the transportation sector from 2001-2020, with a slight increase since 2021, but still far below the actual contribution of inland waterway transport to goods circulation, regional connectivity and emission reduction.
Meanwhile, 82 per cent of investment in this sector comes from private sources, indicating significant potential for private sector involvement if supported by appropriate policies, a domestic news agency reported citing the Board IV document.
Board IV recommended that the prime minister direct relevant ministries to continue reviewing and reforming administrative procedures, especially in areas of high priority such as attracting investment, industrial park development, logistics and enhancing export-import facilitation.
ALCHEMPro News Desk (DS)
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