Although Covid-19 has created many “bottlenecks”, Vietnam’s logistics services industry has been sustainable, contributing to ensuring the commodity supply chain and the growth of the economy. However, in order to continue to overcome difficulties, improve competitiveness, develop the Vietnamese logistics industry to the next level, enterprises in this sector need to strengthen linkages, digital transformation and cut costs.

Key service industries

Evaluating the logistics service industry (including transport, warehousing, packaging, freight forwarding…), Vice President of the Association of Logistics Service Enterprises of Vietnam Dao Trong Khoa commented that in recent years, despite the negative impact of Covid-19, the logistics industry has remained sustainable and made significant strides, achieving an average growth rate of 14-16%/year. In particular, the sector has confirmed its role as a key service of the economy when contributing to the maintenance of the supply chain of goods, raw materials and fuels, especially contributing to export and import growth nationwide, with a total turnover of nearly 670 billion USD in 2021.

The Emerging Markets Logistics Index 2021 report, released recently by the world’s leading logistics service provider Agility, shows that Vietnam has climbed 3 ranks compared to 2020, ranking 8th in the top 10 countries. In the face of the pandemic, cargo transportation has flexible adaptations, such as converting passenger planes to carry cargo; opening more shipping routes… The bright spot in 2021 is that the total volume of goods transported through Vietnam’s seaports still reaches more than 703 million tons, an increase of 2% compared to 2020. In particular, the volume of goods exported and imported for international transport of Vietnam’s seagoing fleet has reached a rare growth of 54% (reaching nearly 5 million tons) compared to 2020. Along with that, international air freight in 2021 surged, reaching approximately 1.1 million tons, up 21.3% compared to 2020.

Or e-commerce enterprises have had a rapid acceleration to form an e-commerce logistics ecosystem. For example, the e-commerce platform Lazada Vietnam has built a complex logistics network, in which Lazada logistics alone owns more than 400 warehousing facilities, cargo sorting centers, and post offices nationwide. Representative of Lazada Vietnam said that in the coming time, this e-commerce platform will continue to invest in expanding more new commodity classification centers to best serve Vietnamese customers.

In addition, logistics infrastructure is being strengthened with the number of logistics centers increasing rapidly in the past year. Among the major logistics center projects that received license and started in 2021, we can mention: Non-tariff, logistics and industrial zone Lach District in Hai Phong, ICD Vinh Phuc Logistics Center, Yen Phong II Industrial – Logistics Zone in Bac Ninh…

Strong alignment, brand formation

Experts predict that in 2022, the economy in general and the logistics industry in particular will continue to face many difficulties and challenges due to the ongoing Covid-19 pandemic and the high price of petroleum… Therefore, Vietnam’s logistics sector should focus on overcoming constraints, promoting digital transformation, developing infrastructure, improving the quality of human resources and strengthening linkages for development. Dr. Mai Xuan Thieu, President of Vietnam Logistics Human Resource Development Association, said that improving the capacity of logistics enterprises and cutting logistics costs is a vital issue to improve the competitiveness of the economy and each business. In addition, it is necessary to pay attention to training human resources in the logistics industry, increasing the application of information technology to optimize the management and operation of logistics.

Similarly, the Director of Lazada Vietnam shipping department Ngo Thi Truc Anh emphasized that in order for logistics services to develop, enterprises need to invest in technology, “digitizing” the stages from delivery to payment… “In the past, the goods were ordered by customers the day before, the next day came, now the goods are delivered in the day thanks to digital transformation,” Ms. Truc Anh said.

According to economic experts, for the Vietnamese logistics industry to develop to a new level, taking full advantage of the opportunities of the international economic integration process, Vietnamese logistics enterprises need to embark on cooperation, promote dynamism and creativity; develop immediate and long-term solutions and strategies. Director of SNP logistics (Saigon New Port Corporation) Do Xuan Minh proposed that the Government, ministries and sectors should have a special mechanism for enterprises to improve competitiveness; at the same time, implement solutions to form a strong logistics enterprise network.

This is also the view of Deputy Minister of Industry and Trade Tran Quoc Khanh when saying that the link between logistics enterprises, between logistics enterprises and production, export and import enterprises is an important factor. In addition, the network of large enterprises will lead the market, thereby reducing logistics costs, improving competitiveness for Vietnamese products and goods… This activity not only needs the initiative of the enterprise but also the support policies from the state management agencies.

Source: Ha Noi moi