Logistics in Vietnam

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AN OVERVIEW ON THE LOGISTICS MARKET IN VIETNAM

January 2011

© Copyright

Istituto nazionale per il Commercio Estero

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AN OVERVIEW ON THE LOGISTICS MARKET IN VIETNAM
TABLE OF CONTENTS I. Introduction .......................................................................................................................... 3 II. A general picture on logistics in Vietnam ............................................................................ 3 2.1 Infrastructure, operation and cargo volumes................................................................. 3 2.1.1 Air........................................................................................................................... 3 2.1.2 River and sea ......................................................................................................... 5 2.1.3 Road....................................................................................................................... 9 2.1.4 Rail ....................................................................................................................... 11 2.2. The logistics industry in Viet Nam .............................................................................. 12 2.2.1 Some considerations about the industry .............................................................. 12 2.2.2 Some major challenges........................................................................................ 13 III. Vietnam’s commitment to WTO in logistics...................................................................... 14 IV. Leading companies in the market.................................................................................... 14 4.1 Vietnam Airlines .......................................................................................................... 14 4.2.Vinalines ..................................................................................................................... 15 4.3 Maersk Line ................................................................................................................ 16 VI. Major Shipping Lines and Agency Representation.......................................................... 17

Editorial note The following report, providing an overview of infrastructure and development of the Vietnam’s logistic sector, has been composed by the Italian Institute for Foreign Trade (ICE, also known as Italian Trade Commission) of Ho Chi Minh City. It has been prepared by a team composed by Ms. Nguyen Thi Thu Ha, Mrs. Do Nguyen Quynh Anh and Mr. Tran Quang Nam, under the supervision of Mr. Marco Saladini who also edited its final version. The report is part of the project Distretti e Piattaforme Logistiche all’Estero carried out by the Office for machinery, technology and services of ICE Rome and, for Vietnam, by ICE Ho Chi Minh City.

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I. Introduction Vietnam is located in the south-eastern end of the Indo-Chinese peninsula and occupies a land area of 331,688 square kilometers. With a north-to-south distance of 1,650 kilometers, it is about 50 kilometers wide at the narrowest point. It shares boundaries with Laos, Cambodia on the west and China in the north. Vietnam has 58 provinces and five big cities. Its geographical topography contains tropical lowlands, deltas, hills and densely forested highlands. Major geographic regions in the country include highlands and the Red River Delta in the north, the Highlands in the central region and the coastal lowlands and the Mekong Delta in the south. Vietnam has a population of more than 85 million with an estimated 63% below the age of 30. The Kinh (Viet) ethnic group constitutes the majority of the population (about 86%) and Vietnamese is the most commonly spoken language. Literacy level in Vietnam is at around 90% of the total population, which is relatively higher than other developing countries. Vietnam has seen rapid economic growth after adopting economic reforms in 1986, making the nation...
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