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| Investment and Development sign a Memorandum of Understanding (MoU) on comprehensive co-operation, aiming at improving infrastructure, facilities and service quality of logistics in 2015-20. — Photo courtesy BIDV |
HCM CITY (Biz Hub) — The Viet Nam Logistics Business Association and the Bank for Investment and Development (BIDV) will co-operate to improve infrastructure, facilities and the service quality of logistics in the 2015-20 period.
The two sides have signed a memorandum of understanding, agreeing to boost co-operation in deposit services, securities, bonds issue and payment and insurance, besides logistics services, communications and information exchange and brand promotion.
Deputy General Director of BIDV Le Trung Thanh said, "Viet Nam's logistics industry has been facing challenges in human resources, training, technology and management as well as of poor infrastructure due to limited funds.
"The bank loans will help to improve competitiveness of logistics businesses and production."
BIDV has provided medium-term and long-term loans to logistics projects such as for piers of Quy Nhon Port in Binh Dinh Province; International Gemadept Dung Quat in Quang Ngai; Chu Lai-Truong Hai Port in Quang Nam Province; and an aircraft purchase project of VietJetAir.
Poor logistics infrastructure and services are a major barrier to foreign investment.
The quality of Viet Nam's logistics services has been ranked 48th out of 160 in the world and fourth among ASEAN countries.
The country has 1,300 logistics businesses, but foreign logistics companies command 70 per cent of the market.
The logistics industry is expected to contribute 10 per cent of the country's GDP by 2020. — VNS