Normally this would not be covered here because it is about Vietnam. But it has a direct bearing on the logistics of China.
Vietnam faces an extra cost of more than US$1.7 billion as the lack of port logistics leads local companies to have their shipments transshipped via ports in Hong Kong and Singapore.
The country now has 114 seaports, most of them small, but only 14 are considered internationally acceptable.
Nguyen Tuan Hoa, deputy director of the Development Study Center under the HCMC government said logistics expenses in the United States made up 9.5% of GDP, 11% in Japan, 16% in South Korea, 21.6% in China and 25% of GDP in Vietnam.
He said logistics played a major role in the economic development of a country which depends heavily on exports.
Which is fascinating.
First it tells us that Vietnam has a serious problem in attracting industry to move from China until it gets its logistics straight. And that the percentage of GDP ascribable to logistics expenses in China, if true, is still more than double that of the United States.
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