The logistics industry is one of several industries directly related to many different parties. In particular, the concept of a logistics center is still unfamiliar to many people. So what is a logistics center? Let's explore the answer in today's article!

What is a logistics center?

A logistics center or logistics hub is a center that helps connect the activities of transporting, coordinating, separating, distributing, and organizing goods and products for domestic and foreign transportation based on the trade of two different parties.

Accordingly, the parties may co-own or lease the entire house or facility of the center including warehouses, coordination centers, storage areas, transportation services, and offices.

The logistics center provides both traditional storage operations and logistics services that increase the need to assemble, label, sell products, etc. It will combine efficient logistics and industrial operations in the main port area to create variation by customer and country.

Potential for developing logistics centers in Vietnam

The logistics center can be considered as a basis for economic development focusing on the logistics industry, including policies to unlock investment or solutions to improve the competitiveness of small and very small businesses.

The existence of logistics hubs is seen as a driving force for growth, creating more job opportunities and prosperity for the country.

According to the report, the logistics industry is expected to achieve 8%-10% of Vietnam's total domestic product by 2025. To conquer this number, it is necessary to develop a new plan that can help develop as well as improve the competitiveness of logistics in the country in 2025.

In particular, Ho Chi Minh City is known as the largest market for consumption in Vietnam. It is also the largest supply and distribution center in the south.

Goods intended for import and export from the South and trade must pass through this city.

Therefore, the project focusing on building 3 logistics centers in the southern region is underway with the goal of attracting businesses to hire specialized logistics services and cutting unnecessary costs.

Besides, the plan is also promoting the attraction of investment capital in logistics infrastructure as well as logistics hub development in the region and provinces such as Hai Phong, Hanoi, Can Tho, Da Nang, Lao Cai, etc.

Epilogue

Above is some relevant information about the logistics center and Vietnam's potential for logistics in the coming period. Hope the article will bring useful information for you. Thanks for reading.