Ho Chi Minh City topped the first-ever Vietnam Provincial Logistics Competitiveness Index (LCI) 2022, followed by Hai Phong, Binh Duong, and Ba Ria – Vung Tau and Hanoi.

Ho Chi Minh City topped the first-ever Vietnam Provincial Logistics Competitiveness Index (LCI) 2022, followed by Hai Phong, Binh Duong, and Ba Ria – Vung Tau and Hanoi, according to a report recently announced by the Vietnam Logistics Association (VLA).

At the report announcing ceremony, VLA Chairman Le Duy Hiep said that during August 2022 – November 2023, the VLA, in collaboration with the Vietnam Logistics Research and Development Institute (VLI) and consulting service provider Dream Incubator, drew the report based on a survey on 26 cities and provinces nationwide with the most outstanding GRDP, volume of transported goods, and number of logistics businesses.

The report also highlighted that infrastructure, human resources, logistics service providers, logistics service users and regulatory frameworks are important to shape up a sound logistics system, he added.

The LCI, an index that evaluates the development speed, quality, infrastructure, and policies of municipal and provincial authorities for logistics service businesses in Vietnam, will be conducted yearly, providing an insight into localities’ logistics industry based on five pillars namely economy, logistics services, regulatory frameworks – policies, logistics infrastructure, and workforce.

According to VLI Director Ho Thi Thu Hoa, the LCI provides a foundation for organizations and enterprises to outline business strategies and make wise investment decisions so as to improve competitive edge.

Furthermore, the index will play an important role in promoting logistics development in the region and in Vietnam as a whole, she said.

Vietnam is now home to 4,000 logistics firms, 70 percent of them are located in Ho Chi Minh City and neighbouring localities. Most of the businesses are operating at a small scale, with 90% of them having less than VND10 billion (over US$413,800) in capital and 1 percent more than 100 billion.

VNA