DI collaborates with Vietnam Logistics Business Association (VLA) to implement the LCI project – the measurement of provincial logistics service

August 17, 2022

Dream Incubator Vietnam (DIV) is delighted to announce our cooperation with Vietnam Logistics Business Association (VLA), Vietnam Logistics Research and Development Institute (VLI), and Vietnam Chamber of Commerce and Industry (VCCI) for the implementation of the project “Vietnam Provincial Logistics Competitiveness Index” (LCI). The LCI project, hosted by VLA, is expected to actively contribute to realizing the goal of developing Vietnam’s logistics service sector in the ardor of “Digital transformation, Innovation, and Creativity” following VLA’s proposition in the 8th Congress (2021-2024).

To accomplish the country's key goals of industrialization and modernization until 2030, with a vision to 2045, and post-COVID socio-economic recovery and sustainable development as announced in the resolution of the 13th National Party Congress, the logistics sector needs to thrive to reach new heights and assume a major role in providing the backbone for Vietnam’s economy as a high value-added service sector. Furthermore, in accordance with Decision No. 221/QD-TTg by the Prime Minister on “Approval for the Action plan to enhance competitiveness and develop logistics services in Vietnam by 2025,” VLA accordingly implements Mission No. 36 for completing the legislation and policies for supporting logistics service providers and Mission No. 60 for ranking and assessing the competitiveness of Vietnam’s logistics sector and logistics service providers through the project.

The purpose of the LCI project is to comprehensively evaluate and measure the development level, quality of infrastructure and regulations related to logistics activities in each province/city across the country, thereby reflecting the overall image of logistics services in each target region in the LCI. Along with the voice of the business community, the LCI will be able to constructively engage in policy advocacy with local authorities to develop their area’s logistics services. In addition, the assessment of this index will help domestic and foreign enterprises make strategic decisions regarding business location selection and business expansion. Through media, the LCI can heighten public awareness about the importance of the logistics sector. VLA President Le Duy Hiep said, “We believe, in the long term, the project will have a strong impact on logistics cost reduction and support other business activities related to export, product, etc., as well as effectively attract foreign investments.” 

Figure 1 – LCI project purpose: Construct a reliable set of indices as a reference for developing the sector

DIV will take part as the project’s research and analysis team. The representative of the research team, DIV General Director Nguyen Doan Duc Tuan Anh shares that the research team will conduct a research analysis of LCI based on 4 main pillars of the logistics sector: Logistics Service Demand, Logistics Service Providers, Infrastructure, and Regulation Framework. Mr. Tuan Anh said, “The team will conduct a macro study of economic and logistics situation of each province which is to be used as the basis for LCI identified based on the provincial economy, the development of logistics service providers, infrastructure quality, and provincial policy.”

Figure 2 – Illustration of proposed variables

Besides the research team, the project also engages logistics advisors, who are leading logistics professors, doctors from leading logistics institutions in Vietnam. Prof. Nguyen Ngoc Tran emphasized, “Logistics takes an important role in the global trade. This project is implemented at the right time, answering the right needs for Vietnam’s emerging economy in the context of the Indo-Pacific strategy. Vietnam is the center of ASEAN; therefore, the demands of import and export are huge. The LCI must be the basis to measure the potentials of logistics development commensurately with global trade demands.” 

Figure 3 – Participants of leading individuals/organizations in logistics sector

The official LCI report is expected in the first quarter of 2023. The project consists of two stages: (1) research and survey of the logistics competitiveness among provinces/cities across Vietnam by 2022 and (2) report completion and official release. Stage 1 is to confirm the project methodology and indices by pilot surveys to conduct larger-scale surveys and in-depth analysis.  

Some photos at the LCI kick-off ceremony

Deputy Director of Import and Export Department, Ministry of Industry and Trade, Mr. Tran Thanh Hai highly dignifies the LCI project

DIV General Director Nguyen Doan Duc Tuan Anh signs MOU with VLA

Source: VLA’s press release