Does Vietnam Have No Land For Logistics?

E-commerce has grown strongly, but the land bank is devoted to commercial centers, office buildings and not to logistics. That is one of the big shortcomings that Mr. Bui Anh Tuan, Director of Mapletree Vietnam (Mapletree headquartered in Singapore) thinks that should be overcome to improve the infrastructure capacity for Vietnam's logistics.

Within the framework of the Vietnam Logistics Forum 2018, which took place on December 7 in Quang Ninh, the seminar on improving infrastructure capacity for logistics addressed some of the issues that need to be solved, the most problematic is the land fund. Mr. Tuan said, Mapletree has entered the Vietnam market more than a dozen years ago, now has over 300,000 m2 of logistics, and the next five years orientation has 600-800 thousand m2 of logistics according to international standards in Vietnam. Male. Sharing the reason for wanting to expand in Vietnam, Mr. Tuan said that macroeconomic figures such as GDP growth or FDI attraction seem attractive. But a closer, more pragmatic view may find surprises in some other numbers.

In recent years, Vietnam attracts 25-30 billion USD of foreign investment each year, while domestic consumption is 6 times, approximately 200 billion USD per year. This shows that the domestic market is very attractive, he emphasized. With the theme of the forum, Mr. Tuan concurred that logistics is the lifeblood to connect growth areas and the first is to mention infrastructure for this important economic sector. Talking about logistics infrastructure, so far it has only mentioned about dynamic infrastructure, transportation, ports ... but the static infrastructure is still very limited, Mr. Tuan commented.

If the number of supply for logistics services in Vietnam is only from 3 million to 3 million 500 thousand m2, Mr. Tuan said that in Singapore this figure is nearly double while the area and population of Singapore are smaller. Vietnam. As such, Vietnam still has a lot of potentials, which is why Mapletree expanded its scale in Vietnam so quickly, he emphasized. But, according to Mr. Tuan, logistics infrastructure in Vietnam is facing many difficulties from inadequacies in land planning.

For many years, big cities have focused on developing real estate to support the birth of new urban areas, sprouting up many apartments and commercial centers, industrial parks, office buildings, hotels, and Land fund planning for logistics is not much. The purpose of land use is also absolutely no planning for logistics infrastructure, Mr. Tuan emphasized. While according to this position, with domestic consumption growing annually from 12-15%, e-commerce also grows with a very interesting level, it is very necessary to have logistics infrastructure to support.

Mr. Tuan also reiterated the number mentioned by the Deputy Minister of Industry and Trade in the opening speech of the forum, which is according to the World Bank Report on Logistics Performance Index (LPI), published on 24/7/2018 , Vietnam ranked 39/160 countries in the research, up 25 places compared to 2016 and rose to 3rd among ASEAN countries.

The Mapletree executive said that two years of 25 steps jumped but before that, he had dropped from 48 to 60, which proved that the results were unstable because the infrastructure did not meet the demand. development of logistics. Once again emphasizing the importance of the land fund, Mr. Tuan said that the current land for building logistics is basically only for export but forgets that domestic consumption is growing very fast.

Mr. Tuan said that it is possible to adjust the planning to anticipate and best meet the logistics infrastructure in the long run. Because even with the current pace of e-commerce development, Vietnam cannot avoid having to prepare the infrastructure for logistics. As the facilitator of the discussion, Mr. Sebastian Eckardt, Chief Economist, the World Bank turned to Mr. Vu Van Dat, Deputy Head of Economic Zone Management Board of Quang Ninh Province, who presented the "ambitions" "of this province for logistics infrastructure.

The question for Mr. Dat is that Quang Ninh has prepared any plan to have the land funds for logistics infrastructure? Agreeing that it is necessary to pay attention to the land fund, Mr. Dat said that the Ministry of Industry and Trade needs to propose to include the land fund for logistics in the law when amending the Land Law and related laws. According to this position, in the land use plan, there may be a type of land is warehousing land, and has been included in the law, when planning construction of each urban area has a plan for this type of land to have a basis for layout. for businesses in need. Besides the land fund, a number of other comments in the seminar also paid special attention to technology and education. Because if you do not care about these two factors, it is very difficult to have a modern logistics industry.

Article source: logistics4vn.com/viet-nam-khong-co-quy-dat-danh-cho-logistics

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