Mindset change to boost status of Vietnam’s logistics

May 25th at 13:44
25-05-2023 13:44:53+07:00

Mindset change to boost status of Vietnam’s logistics

Vietnam continues to be chosen as a destination to create growth space for logistics, but more sustainable development remains a target that may be further off.


Tran Thanh Hai, deputy director-general of the Ministry of Industry and Trade’s Agency of Foreign Trade, said at an event to promote August’s Vietnam International Logistics Exhibition that logistics boasts an average growth rate of 14-16 per cent a year in Vietnam, and a scale of $40-42 billion per year.

“According to Agility’s assessment in 2022, Vietnam is ranked 11th in the group of 50 global emerging logistics markets,” Hai said. “Vietnam’s logistics industry has made significant progress and the number of businesses and the quality of logistics service business has increased, making a significant contribution to the import and export results of goods in the year.”

Last year Vietnam hit an all-time high of $732.5 billion in export-import turnover, up 9.5 per cent from 2021. This is the result of the efforts of logistics service enterprises and the government in creating a business environment and improving the competitiveness of enterprises in the economy, Hai added.

Nguyen Duy Minh, general secretary of the Vietnam Logistics Association (VLA), said that freight rates dropped deeply back to pre-pandemic rates last year.

“From a lack of empty containers to carry goods, there became a worldwide surplus of more than six million TEUs, which signals a difficult year ahead for the logistics service industry,” Minh said.

Although the demand for containers witnessed a slow decline, domestic demand and e-commerce remain in growth development.

“Thanks to its political and social stability and favourable geographical position, Vietnam is benefiting from a wave of supply chain shifts. In addition, the country has taken advantage of its long coastline to have a seaport system with optimal capacity, accompanied by an optimistic economic growth rate and stable production,” Minh added.

The boom of e-commerce in both export and domestic consumption has also helped the nation improve its competitiveness to become a centre of transshipment and a vital cog in the global supply chain.

However, various challenges exist at the same time, such as high service costs and increasing pressure on infrastructure. According to experts, the logistics industry still needs to develop infrastructure connectivity, public-private cooperation to expand into logistics centres, and comprehensive supply chains in terms of circulation, processing, preservation, transportation, and distribution.

Cap Trong Cuong, general director of Vietnam Container Corporation, said businesses need to focus on developing technology and supplementing the supply chain and value-added services.

“Currently, many businesses are too concerned with the core business but have not paid much attention to value-added services for their customers,” he said. “Some warehouse operators only care about how many containers are in the warehouse per day. But when customers have other service needs, even small ones such as changing stamps or attaching stamps, they can’t be met, losing competitiveness.”

Ngo Ngoc Hoan, a representative of Samsung SDS Vietnam, added that the investment and transformation of logistics enterprises will feature many trends.

“An important trend today is door-to-door package services, offering plenty of value-added services for businesses. When you can provide many different types of services, it will keep customers attached to the business, and at the same time create convenience for customers to develop their business,” Hoan said.

Digital transformation is also an inevitable trend for logistics enterprises towards digitalisation across all stages, from production and sales to transportation and after-sales, according to Hoan.




Bình Duong hosts electricity, industrial machinery, water, energy expos

Three international exhibitions, Electricity, Industrial Machinery and Automation; Water Vietnam; and Energy Vietnam opened at the World Trade Center Binh Duong New...

Indian businesses come visiting to explore opportunities in southern region

Speaking at the event, Dr Madan Mohan Sethi, the Indian consul general in HCM City, said India has become Viet Nam’s seventh largest trading partner after bilateral...

Hanoi emerges major luxury brand destination in Southeast Asia

According to local experts, Hanoi is fast becoming a hotspot for luxury brands in Southeast Asia.

Retail action hots up with store openings

Vietnam’s retail market is becoming a fertile ground for not only domestic retailers but also foreign brands seeking to do business up and down the country.

Samsung to launch Innovation Campus in Da Nang

South Korean electronics giant Samsung will begin educational programmes and training courses for lecturers and students at the central city’s Duy Tan private...

OCOP products stimulate Hung Yen’s agriculture

The development of OCOP products aims to bolster the potential of restructuring and stimulating Hung Yen’s agricultural sustainability.

National Assembly deputies discuss ceiling and floor prices for air travel

Raising or keeping the current ceiling price and floor price for domestic air tickets remained a contentious issue among National Assembly deputies.

Ha Noi supports industrial development

In order to achieve the target of industrial development to reach 7-7.5 per cent this year, the capital city of Ha Noi has been implementing a series of solutions...

Deputy PM urges acceleration of electricity licensing for finished wind, solar power projects

Deputy Prime Minister Tran Hong Ha has requested the Ministry of Industry and Trade to accelerate the process of issuing electricity licences for wind and solar...

Rubber firms face mounting hardships

Rubber firms are facing mounting hardships driven by a lack of orders, high borrowing costs, and large tax refunds having yet to be paid to them.


Back To Top