Singapore, Ho Chi Minh City, 25 January 2007 – Vietnam’s transition to a market economy and the fulfillment of its potential as a trading nation could be accelerated if it fast tracks the development of world-class transportation infrastructure and logistics systems, according to new research.
A white paper, entitled: “Vietnam Transportation and Logistics: Challenges and Opportunities,” developed jointly by global growth consulting company Frost & Sullivan and global container shipping and logistics group Neptune Orient Lines (NOL) and its subsidiaries, APL and APL Logistics, examines various aspects of Vietnam’s transportation and logistics environment – from container shipping and ports to the cold chain.
The report highlights the enormous potential of Vietnam as one of the world’s fastest-growing sourcing and manufacturing locations. Its economy is forecast to grow by around 8 percent annually for the next decade. Business-friendly Government policies have led to increased inflows of foreign direct investment (FDI). Initiatives to further integrate with the world economy, including Vietnam’s recently secured membership of the World Trade Organisation (WTO), are likely to accelerate trade growth even more.
However, to cope with this expansion, Vietnam needs to address several major challenges such as improving its infrastructure and systems for transportation and logistics.