Vietnamese logistics increases competitiveness, reduces costs

Vietnamese logistics increases competitiveness, reduces costs

TTO - Lack of professionalism, low automation, productivity of service implementation has not reached advanced countries, the application of information technology and the level of digitalization is not high, leading to reduced competitiveness compared to the international market.

Vietnamese logistics enterprises seek to increase competitiveness, reduce costs to participate deeply in the global value chain - Photo: QUANG DINH

That is the comment of Mr. Le Duy Hiep - Chairman of Vietnam Logistics Service Business Association (VLA) - at the forum "Logistics Vietnam - Transforming development" organized by the Business Forum magazine in collaboration with VLA and SEA Logistic Partners (SLP Vietnam) on 19-10.

According to Mr. Hiep, the industrial revolution 4.0 has given rise to many special arising services. The logistics service provider market of Vietnam and the world competes fiercely when e-commerce develops dramatically with advanced forms of logistics services such as E-logistics, Green logistics ... making the service costs of Vietnamese logistics enterprises still relatively high.

Commercial Director of SLP Vietnam Company Le Thi Ngoc Diep said that the current bottleneck in infrastructure from airports, seaports, warehouses ... unregulated, dispersed. In particular, the planned warehousing system has a difference between the North and the South, leading to restrictions in the transportation of goods across the country.

Products and services that promote transportation flexibility in logistics to optimize efficiency, costs are displayed, introduced to businesses to visit and learn - Photo: CONG TRUNG

 

According to VLA statistics, Vietnam's logistics market has more than 5,000 enterprises, of which 89% are small and medium-sized Vietnamese enterprises, 10% are joint venture enterprises and 1% are 100% foreign-owned enterprises providing transnational logistics services. Logistics-related costs account for about 20% of GDP in Vietnam, but in advanced countries, this figure is only about 7-9%.

The boom in e-commerce in Vietnam with large enterprises such as Shopee, Lazada or Tiki becomes a potential opportunity for corporations to invest and develop modern logistics infrastructure. This is an opportunity for businesses to participate deeply in supply chain development, step by step digital transformation to participate in the global value chain.

Mr. Le Trong Hieu - Senior Director of CBRE Vietnam - said that in order to catch the "wave" of logistics, it is necessary to pay attention to developing the use of warehouses effectively, increasing the speed of order processing, reducing costs. Becauseretail and e-commerce both want their warehouses to be closer to customers, because as soon as customers click to buy on the application, in a very short period of time, they must process orders at the fastest possible speed.

If the remote warehouse location will take a long time to pass through the crowded downtown area, the operating costs will increase. Therefore, building warehouses helps optimize the delivery of goods to customers. "Thepenetration of e-commerce in Vietnam is still quite low, but by 2024-2025, this number will increase from 15-20%, even 50%" - Mr. Hieu forecast.

According to businesses, Vietnam currently possesses all the advantages to promote logistics development, including a country with a young population, about 100 million people; stable government support policies, extensive trade agreements with other countries.

Mr. Phan Van Chinh - Director General of the Import and Export Department - Ministry of Industry and Trade - said that there should be support and links between logistics enterprises to jointly promote and develop the market. Build "leading" businesses with sufficient capacity and scale to advise and lead businesses in the industry in a symbiotic model, growing and developing together.

CONG TRUNG-tuoitre.vn




 
Ý kiến bạn đọc
Chủ đề liên quan
Có thể bạn sẽ quan tâm

Proposal to invest in dry ports in the form of PPP

As a later type of development than seaports, but currently dry ports are interested in investing in areas and transport corridors with large container cargo traffic.

Terms on the bill of lading to know

Bill of lading (B/L) refers to bill of lading as a freight bill of lading, which is considered as a...

Reduce logistics costs, increase import and export capacity

The Vietnam Association of Logistics Service Enterprises (VLA) has just reported on logistics activities in Vietnam, in which it is worth noting that logistics costs are equivalent to about 20-22% of annual GDP, significantly higher than Thailand (19%), China (18%), Malaysia (13%) and nearly three times higher than countries such as the US, Singapore (8%).

Low imports cause Gasoline shortage

The current partial shortage of gasoline and oil has been caused by wholesalers not importing sufficient amounts, says said Deputy Minister of Industry and Trade Do Thang Hai.

Increase the competitiveness of goods from logistics services

The Mekong Delta is the rice, fishery and fruit bowl of the whole country. Therefore, developing a worthy logistics system and improving the competitiveness of key goods of the region in the direction of efficiency and sustainability is essential.

Chu Lai port strongly develops bulk import and export services

After the pandemic, the wave of supply chain shift to Vietnam is opening up opportunities to develop large production areas across the country, including the Central - Central Highlands, leading to great demand for logistics in this region.

Local logistics industry aims for green development

Việt Nam needs solutions to develop green logistics to take advantage of free trade agreements (FTAs), especially new generation FTAs to help the industry develop, support market expansion and promote exports.

What is FCL/LCL?

An FCL/LCL contract is a mode of shipment by ocean freight, also called “pier/house”. The charger takes the packages in a container and delivers a cargo which is destined for several different recipients. On arrival to the port destination, the packages are separated. They are then put at the disposal of the different recipients or delivered to them.

Logistics and fintech combine to solve Africa’s transport challenges

Key to unlocking value chains, especially in the tech start-up space is the ability of large established corporates to work effectively with small agile start-ups.

North American logistics business in slow growth

The boom period for North American logistics companies is predicted to come to an end as economic activity cools down, slowing growth in 2023.