Truong Tho Port in HCMC's Thu Duc District. Photo by VnExpress/Quynh Tran. 

Ho Chi Minh City has approved a VND95.8 trillion ($4.13 billion) project to develop its logistics sector over the next 10 years. 

This is one of the city’s 45 "breakthrough" projects that aims to have the sector contribute 12 percent of the gross regional domestic product (GRDP) by 2030.

As it concerns transport for domestic circulation, import and export of goods and services, the project enumerates several key objectives and solutions.

For logistics infrastructure, it would have the city develop closed ring roads and a system of highways to connect the city with other southern provinces.

The city will also promote the transportation of goods by waterways and the railways, strengthen multimodal transport connections to logistics centers, build inland container depots, warehouses and distribution centers.

The project envisages seven areas being developed into logistics centers in District 2, 9, Thu Duc, Binh Chanh, Nha Be, and Hoc Mon.

These and other solutions are expected boost logistics business revenues by 15 percent in 2025 and 20 percent in 2030.

The proportion of the logistics sector's contribution to the city's GRDP would also be increased to 10 percent by 2025 and 12 percent in 2030.

The project document says these results would help reduce the ratio of national logistics cost over the national GDP by 10-15 percent by 2025.

There are over 1,500 warehouses across HCMC, most of them are developed spontaneously on uneven scales, used inefficiently and operated unprofessionally, it notes.

According to the Vietnam Logistics Business Association, the structure of logistics costs in Vietnam includes 60 percent for transportation costs, 21 percent for handling activities and 12 percent for warehousing. Roads account for more than 77 percent of the transportation market share.