Insiders appeal for tackling logistics bottlenecks in Vietnam

Vietnam needs to untangle bottlenecks facing the logistics sector in order to boost the sectoral development on a par with that of developed countries, insiders have suggested.

Insiders appeal for tackling logistics bottlenecks in Vietnam

The competitiveness of logistics firms remains low, largely due to a lack of capital and experience in providing overseas services.

Despite achieving the impressive annual growth rates ranging from 13 - 15 per cent in recent years, the local logistics sector still falls short of expectations and confronts an array of challenges, largely high service costs and a lack of internal links among domestic entities.

According to the Vietnam Logistics Business Association (VLA), some 10 to 15 per cent of logistics firms operating on a global scale have provided services for the nation, but occupy a 60 per cent share of the local market.

Nguyen Tuong, VLA Deputy General Secretary, cited a logistics performance index (LPI) 2018 report by the World Bank as saying that Vietnam ranked 39th among the 160 surveyed countries, an increase of 25 places against the 2016 rankings.

The local sector plans to move up the LPI rankings by 5 to 10 places in order to keep pace with those of developed countries and this requires great efforts into modernizing the sector, Tuong said.

Tran Thanh Hai, deputy head of the Import-Export Department under the Ministry of Industry and Trade, said that logistics are one of the key sectors that make significant contributions to the country’s overall economic growth.

He noted that Prime Minister Nguyen Xuan Phuc and relevant ministries pay close attention to boosting logistics growth as an action plan has been issued to further increase the competitiveness and development of the logistics sector by 2025.

Nguyen Thanh Phuong, General Director of the Sao Do Group - the investor of Dinh Vu Industrial Park in the northern city of Haiphong, said there is great potential to develop the country’s logistics sector as there remains a big gap in both logistics infrastructure and service quality.

Indeed, local logistics firms possess a considerable advantage over their overseas rivals in running storage zones and meeting the requirements of customers in terms of market trends and geographic conditions.

Emerging as a pioneer in applying logistics technologies, Hateco Group has managed to slash its logistics costs thanks to developing a 13 hectare logistics center in Hanoi which operates on Industry 4.0 platforms to categorize goods.

Tran Thanh Hai called for greater efforts to ease bottlenecks facing the logistics sector with the aim of further accelerating its development.

Top priority should be given to upgrading logistics infrastructure, particularly road and aviation items, as well as boosting linkages among transport formats and vehicle providers, he stressed.

 

Most goods are transported via road, thus leading to increased logistics costs.

Extreme difficulties remain over reducing these costs as the development of waterway and railway transportation remains limited.

Meanwhile, the competitiveness of logistics firms remains low, largely due to a lack of capital and experience in providing overseas services.

Hai added that another factor for the high costs is poor linkages among different service segments.

In fact, local firms have been providing a range of services in storage, transport, and support, thus putting them at a disadvantage in comparison with foreign rivals.

Nguyen Manh Ha, Director of the Nam Dinh Vu Port JSC, said current levels of high traffic flow pose a threat to the transport progress of logistics firms.

Therefore, Ha called upon competent agencies to review the current road planning and seek ways to enhance the development of internal waterways and railway transportation links, in order to cut down logistics costs and improve the overall service quality.

He asserted the average logistic costs will be halved if the development of waterways and railway transport is further boosted.

He explained that internal waterways transport could help to reduce logistics costs by 30 per cent in comparison with road transport. VOV

Logistics industry short of 2 million employees

Logistics industry short of 2 million employees

According to the Vietnam Logistics Association, logistics industry lacks of around 2 million employees.

Logistics sector grapples with poor infrastructure

Logistics sector grapples with poor infrastructure

Weak infrastructure and high transport costs have prevented Vietnamese firms from fully tapping into the logistics sector’s potential.  

Weak logistics services cause great losses to Mekong Delta exporters

Weak logistics services cause great losses to Mekong Delta exporters

The poor logistics services in the Mekong Delta have pushed up the costs of export goods, especially farm produce, and caused great losses to export firms, it was reported at a workshop held in Can Tho city on April 23.  

 
 

Other News

.
COVID-19 woes: Footwear exports likely to fall short of target
COVID-19 woes: Footwear exports likely to fall short of target
BUSINESSicon  17/09/2020 

Footwear exports this year are unlikely to hit the target of US$24 billion because of the fallout of the Covid-19 pandemic.

FTAs help attract more foreign investors to Vietnam
FTAs help attract more foreign investors to Vietnam
BUSINESSicon  17/09/2020 

Free trade agreements (FTAs) that Vietnam has signed with its partners have been an important factor attracting foreign investments to the country.

Real estate businesses struggling amid pandemic
Real estate businesses struggling amid pandemic
BUSINESSicon  17/09/2020 

The severe economic blows from COVID-19 have forced scores of businesses to suspend operations and even file for bankruptcy, with real estate companies among the hardest hit.

Apartment selling prices on the rise in Hanoi
Apartment selling prices on the rise in Hanoi
BUSINESSicon  17/09/2020 

Apartment prices have increased to a new level, particularly in center city areas.

Gov’t to ask NA to waive charges for water exploitation rights
Gov’t to ask NA to waive charges for water exploitation rights
BUSINESSicon  16/09/2020 

Thousands of businesses will not have to pay for the right to exploit water this year if a plan submitted by the Government is approved by the National Assembly.

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 17
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 17
BUSINESSicon  17/09/2020 

Measures needed to support COVID-19-hit enterprises

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 16
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 16
BUSINESSicon  16/09/2020 

ADB cuts Vietnam GDP growth forecast to 1.8% in 2020

Large growth potential for Vietnam banking services in long-term
Large growth potential for Vietnam banking services in long-term
BUSINESSicon  16/09/2020 

Many listed banks witnessed weak performance of fee income growth in the first six months of the year due to the Covid-19 pandemic.

Number of hotels on sale reaches record in Vietnam
Number of hotels on sale reaches record in Vietnam
BUSINESSicon  16/09/2020 

Hotels for sale is reaching a record number in a decade in Vietnam.

Hundreds of abandoned real estate projects in Hanoi to be inspected
Hundreds of abandoned real estate projects in Hanoi to be inspected
BUSINESSicon  16/09/2020 

The Prime Minister has assigned the Ministry of Natural Resources and Environment and Hanoi authorities to check reports in local newspapers about 300 pending or abandoned real estate projects in the city.

VN to be only country in region to attain positive growth in 2020: report
VN to be only country in region to attain positive growth in 2020: report
BUSINESSicon  15/09/2020 

Vietnam is expected to be the only Southeast Asian economy to achieve growth this year, with its GDP rising by a likely 2.3 per cent.

Vietnam ranked world’s second M&A attractive market: Euromonitor
Vietnam ranked world’s second M&A attractive market: Euromonitor
BUSINESSicon  15/09/2020 

The country is set to score 102 and 94.6 out of the maximum of 250 in 2020 and 2021, staying behind only the US with its respective scores of 108.9 and 112.5.

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 15
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 15
BUSINESSicon  15/09/2020 

 Shrimp, tuna exports to EU see positive signs

The trio of ‘petrol tycoons’ in prison
The trio of ‘petrol tycoons’ in prison
BUSINESSicon  15/09/2020 

They are ‘Phat Oil’ in Hai Phong, ‘Son Iron’ in Thanh Hoa, and Trinh Suong in Soc Trang.

Vietnam’s breeding farms: pigs eat ginseng, buffaloes drink wine
Vietnam’s breeding farms: pigs eat ginseng, buffaloes drink wine
BUSINESSicon  17/09/2020 

At some breeding farms in Vietnam, livestock is raised in a special way: eels are bred in plastic cans, pigs eat ginseng and listen to music, and buffaloes drink wine every morning.

Stagnated construction leads to large steel inventories
Stagnated construction leads to large steel inventories
BUSINESSicon  14/09/2020 

The COVID-19 pandemic has led to many construction and real estate projects being delayed, resulting in large inventories of construction materials, especially steel.

Origin fraud threatens local exporters
Origin fraud threatens local exporters
BUSINESSicon  15/09/2020 

After a local silk importer was recently found to be disguising Chinese products as Vietnamese to sell them in India, experts have warned of the risks of losing out on exports and preferential tariffs due to intellectual property (IP) violations.

Registration fee cut does little to revive VN auto market
Registration fee cut does little to revive VN auto market
BUSINESSicon  14/09/2020 

In June Prime Minister Nguyen Xuan Phuc issued a decree cutting registration fees for domestically manufactured cars and other vehicles by half for the rest of the year.

Hanoi considers allowing overnight services to boost night-time economy
Hanoi considers allowing overnight services to boost night-time economy
BUSINESSicon  14/09/2020 

Authorities in Hanoi are seeking feedback for a pilot scheme to allow recreational establishments in Hoan Kiem area to stay open past midnight.

Chubb Life Vietnam honored 'Top Insurance Workplaces 2020'
Chubb Life Vietnam honored 'Top Insurance Workplaces 2020'
BUSINESSicon  14/09/2020 

Insurance Business Asia, a world-renowned insurance publication, has just named Chubb Life Insurance Vietnam Company Limited (Chubb Life Vietnam) among the “Top Insurance Workplaces 2020” in Asia.

 
 
 
Leave your comment on an article

OR QUICK LOGIN