HCMC to start building at least one logistics center before April 30: official

HCMC will prioritize a series of large-scale projects, including starting construction on at least one logistics center before April 30, says Le Huynh Minh Tu, deputy director of the city's Department of Industry and Trade.

Tu shared the information at a conference summarizing 2024 and outlining plans for 2025 on Tuesday in HCMC.

"The city will develop a comprehensive logistics infrastructure system to connect with other economic centers, with construction on at least one logistics center to commence by April 30," said Tu.

He highlighted some other plans such as building an international exhibition center and installing rooftop solar power systems in administrative offices, public service units, and facilities categorized as public assets.

Nguyen Van Nam, deputy head of the economic-planning-investment department of the Thu Duc city people's committee, said his agency is coordinating with the HCMC Department of Industry and Trade to establish four logistics centers in Saigon High-Tech Park, Cat Lai ward, Long Binh ward, and Linh Trung ward, all in Thu Duc city.

The goal is to achieve a logistics service revenue growth of 15% by 2025 and 20% by 2030. By 2025, logistics services are expected to contribute 10% to HCMC’s gross regional domestic product (GRDP) and 12% by 2030. Nationally, the aim is to reduce logistics costs as a percentage of GDP by 10-15% by 2025.

Vice Chairman of the HCMC People's Committee, Nguyen Van Dung, acknowledged that while plans for regional-scale logistics centers were approved in 2020, challenges remain, particularly in location planning.

Over the years, logistics has been identified as one of HCMC’s nine key service industries, alongside finance, trade, science, and technology. Together, these sectors consistently contribute over 60% to the city’s annual growth, reaching 65% in 2024.

According to the HCMC Statistics Office, logistics accounted for 25.4% of GRDP growth in 2024. Total revenue from transportation, warehousing, and support services reached VND460,849 billion ($18.16 billion), a 34.5% increase compared to 2023. While passenger transport decreased by 8.3%, freight transport grew by 12.2%, and support services surged by 47.9%.

The city’s planning for the 2021-2030 period, with a vision to 2050, has been approved and announced. A draft plan for its master plan to 2040, with a vision to 2060, is set to be submitted soon.