High logistics costs engulf Vietnam’s businessesVietNamNet Bridge - Logistics fees in Vietnam account for 20.9 percent of the country’s GDP, of which transport costs account for 60 percent, twice as much as developed economies such as Japan (11 percent) and EU countries (10 percent), according to the World Bank. Businesses complain about high logistics costsThe problem is that the transport system cannot be exploited in the best way. According to the Ministry of Transport (MOT), direct costs amount to 60-80 percent of total transportation costs, while indirect costs are 20-40 percent. “The investment on road transport is high because of the high prices of vehicles. It is expected that by 2020, land transport would amount to 54.4 percent of inter-provincial cargo transport, while railways would be 4.3 percent and waterways 32.4 percent.

Source: VietNamNet News May 11, 2018 03:33 UTC