Hanoi (VNS/VNA) - Hanoi plans to turn Long Bien inland container depot (ICD)into a modern logistics centre with a complete chain to meet the increasingdemand for logistics services.

Arepresentative of Hateco, the investor and operator of the Long Bien ICD, saidthis dry port has a total area of 120,000 sq.m operating 24/7 with a capacityof receiving more than 100 container trucks at the same time. It haswarehouses, a distribution centre for goods and an express deliverycentre.

TheLong Bien ICD is also recognised as a customs clearance location for export andimport of goods. Imported goods will be transported directly to Long BienICD and open declarations to help businesses save time, optimise costs,reduce contact points and congestion at seaports.

Accordingly,goods are imported through international road border gates, internationalrailway stations, international airports and seaports and then transferredfrom the border gate to the Long Bien ICD for customs clearance. They are goodson the list of imported goods subject to customs procedures at the importborder gate, excluding aircraft, yachts; gasoline; explosive precursorsand industrial explosives.

TheMinistry of Finance said with a convenient location for traffic, the Long BienICD connects to a system of seaports, airports, and land border gates fromnorth to south and is located 100km from Hai Phong port, 122km from LachHuyen port, 26km from Noi Bai International Airport, and 126km from the Chineseborder. 

Itis also a gateway to key industrial zones in the North with convenienttraffic and is easy to connect with many northern provinces and cities suchas Hung Yen, Hai Duong, Hai Phong, Bac Ninh, Quang Ninh and Thai Nguyen.

Thiswill be a lever to reduce pressure on seaports and border gates, turning the LongBien ICD into a centralised point for handling all logistics services accordingto the needs of businesses.

Accordingto the Vietnam Logistics Business Association (VLA), in recent years thelogistics industry growth rate has reached about 14-16 percent to 20-22 billionUSD per year, accounting for nearly 20.9 percent of the national GDP.

Despitethe high growth rate, logistics costs account for a large proportion in theproduct cost structure. For example, Chairman of Minh Phu Group Le Van Quang saidthat transporting a container from Vietnam to Japan costs 16 million VND, butfrom Ho Chi Minh City to Hanoi costs 80 million VND.

Logisticsis one of the factors that determines the import and export competitiveness of Vietnam.Therefore, if logistics services including warehousing, order processing andtransportation, are not linked, costs will increase, affecting thecompetitiveness of enterprises.

Withcomplete infrastructure and diversified services at the Long Bien ICD,businesses distributing high-value goods, cross-border e-commerce goods and rawmaterials such as high-end fashion, cosmetics, production accessories andplastic resins will reduce logistics costs.

Thisis also the premise for Hateco to develop cross-border e-commerce logistics andretail services./.